I have a house in a small town - a rural area of South East Ohio that has been appraised for $175.000. My mortgage is $1209.00 30 yr fixed PITI. Bal. owed $137,000. I have moved and just want out of the deal. Any advise how to sell or what my other option are. Have been a real property investor but have so many other interests that can’t deal with this at this time. Don’t really want to rent it although the rental market is pretty good. This is considered a high end property in this area and the house is in excellent condition with all the bells and whistles - 4 bed. 2 baths, 2600 sq. ft.- Am afraid of turning the property over to someone else who may default and dump the mortgage payments back on me. Have thought about a group home or elder care home but don’t know anything about that business. Open to suggestions and help that anyone can offer . Thanks
If it’s really worth $175K, then I would think that you could sell it for at least $137K. Have you tried?
If it is a high end property, I suggest that you don’t even think about renting it out. There is too much possibility of damage.
Have a good real estate agent evaluate it, tell you what they think they can realistically get for it, and then list it about 10%-15% less than what they think they can get.
Do not expect it to sell until all the snow is gone.
There is a couple of things you can do and it involves market segmentation.
#1) Offer Downpayment Assistance Program (like the Grant America Program but there are others). i.e. that means that you contribute 1% to 6% of the down payment + closing costs… so they can get in with very little down payment. Loan brokers will tell you how much down.
#2) Get blank door hangers (www.idprinting.com or www.realestatefarmaids.com (200 for $13.))You print info about your house with picture and start walking up and down your neighborhood hanging them out.
#3) Go to www.zillow.com.(THEY HAVE A FREE LISTING OF THE HOME) Find out what houses are selling for in that neighborhood & Days on the Market (DOM) at those prices.
#4) Go to www.whyMLS.com and, knowing the market, list the house yourself on the MLS for $499. (you’d then only have to pay 3% selling commission.)
#5) On MLS listing, give the selling agent 1% directly.The selling agent themselves would make 2.5% instead of 1.5%. It’s a big deal to them.
#6) Go to www.OakleySign.com/store (800.373.5330) to get signs and a “take one” box with flyers available to anybody that sees your sign and wants to know the price and down payment.
#7) Everybody qualifies for a loan. You need to know when. Find a good (B & C lending) mortgage guy. You’ll send him people. He tells you how long for them to qualify. Accept the person with the shortest time and do a lease with an option to buy with them. They’ll take care of the house.
I tried to keep it short but that should give you a game plan. I’d wish you good luck but there’s no luck involved… just hard work.
Why the selling agent? I would rather give a bonus to the buyer’s agent because they really expend more effort in bringing a buyer to the settlement table.
As it relates to the MLS, who ever sells the house, makes a commission. Whether you think they represent the seller or the buyer. Traditionally, the MLS contract is done between the home owner and the Realtor. It is a sales contract where the sales commission is usually 3% and the selling agent makes half of that. The program that I mentioned would increase that commission to the selling Realtor of the house. No matter what label you put on the REaltor, he’ll find it most attractive to make the extra money, and he will think of your house first.
I am not sure you understand where I am coming from.
When an MLS listed property is sold, 95% of the time there are two real estate agents involved in the transaction. One represents the seller and is also called the listing agent, while the other represents the buyer and is sometimes called the co-operating agent. BOTH participate in the sale of the house, but, the connotation of selling agent is more commonly associated with the listing agent.
95% of the time, it is the buyer’s agent that brings a ready and willing buyer to the settlement table. 95% of the time, the listing agent only marketed the property for sale but still earns a commission when the buyer’s agent finds a buyer. Between the two, the buyer’s agent would be more motivated to work on your listed property and bring you a buyer if the buyer’s agent got the 1% bonus.
By the way, a licensed agent becomes a Realtor just by joining the National Association of Realtors and paying dues. Not all licensed real estate agents are necessarily Realtors.
Also, in my experience the traditional real estate listing agreement calls for a 6% commission (although it is negotiable) usually split between the listing agency and the buyer’s agency. The listing agent and the buyer’s agent would each only get one-fourth of the commission, their respective brokers get the rest. I do agree with you that the agent receiving a 1% bonus would get a commission 2.5% of the selling price instead of 1.5%.
In the real estate sales industry, the terms selling agent and buyer’s agent have specific meanings and are not interchangeable as you suggest.