I live in the Los Angeles area and bought a condo last year for about $35k under market value. I put in about $20k for a new kitchen, bathroom, flooring, etc. and it looks great. I was thinking about selling it, as I think it would now go for $73k above what I bought it for.
My question is whether I should use a realtor. If I go with a realtor, they take 5% around here. After the $25,000 goes to him/her, take away closing costs, rehab costs, and the mortgage payments (interest only) paid for the past year that leaves very little left.
For the pros out there - how do you do it? I feel like all the hard work was for nothing! In this case, the Realtor makes more than me and I’ve done so much hard work! Any advise to give me hope?
I would FSBO it, and just use one of those services that charge like $500, to list in the MLS, then put up some signs,and an ad in the paper. You can also offer an incentive if an agent sells it for you.
Get a couple of those happy perky Realtors(r) to come over and give you a free market analays, that way you have an idea what your unit will sell for. Remember what a unit lists for is different than what it sold for. Also ask them how long does it take to sell. If the market is hot, units sell for less than a month, FSBO it, if the market is soft, get a good realtor who has experince selling in your complex or sell for a discount. Since this is a condo, you will have tons of units that are just like yours and buyers are looking for bargains, so price accordingly. Don’t chase the market! It’s better to price it right the first time than to price it too high and expect offers.
Thanks for the advice. Actually, I’ve contacted a couple of realtors that are going to take a look at the place and give me some thoughts about what I could get for it. To be honest, I was stressed about it in the beginning, but I have a few properties at the moment with a lot of equity. I figure I could take some equity out of the other properties in case I needed the cash flow until I get a good buyer willing to pay my price – I just don’t want to be in the position where I HAVE to sell it!
Well, I think pretty much starting out like I am I need to leverage profits – its called the bottom. Then when I become more successful the realtors I have relationships with will profit as well. I don’t want to work this hard all my life - they will definately get the fruits of my labor in 1 or 2 years and I am very up front about that with them. Honesty is the best policy even in this game…