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.Selling
through an Agent?
Many people think
the only sensible way to sell their house is by
listing it through a real estate agent. Even though
all Realtors would love this to be true, it couldn't
be further from the truth. It's simply not necessary
to use a "middle-man" to sell your house for you (and
collect a huge commission). It's not necessary to wait
for months while a continuous stream of strangers
comes through your house to peek through your closets
at a moment's notice.
There are many reasons people need to sell quickly
and easily, and for most of these people the
traditional Realtor sale just doesn't cut it.
Pre-Check Your Numbers
If you are
considering using an agent to sell your house, be
sure to make this simple calculation before you
decide. Determine a realistic sale price, and
subtract 10%. Then subtract what you owe in
mortgages and liens to find your net proceeds
(profit). This can help you decide if going through
all the time and inconvenience of a traditional sale
is worth the results you can expect. I have a
faster, easier solution, even if you have little or
no equity
Keep in mind, you will still need
to make payments on your house while selling it,
this isn't such a big deal if you live in it, but if
your not, it could make all the difference in the
world.
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The True Cost of a Realtor Sale
If you sign a
listing agreement with a real estate agent, it's
smart to be aware of how much a sale will cost.
Typical costs include a 6% agent commission, and up
to an additional 4% in closing costs. It can add up
quickly. Here's an example:
Sales price: $150,000
6% Agent Commission:
$9,000
4% Closing, title and escrow costs: $6,000
Proceeds from sale:
$150,000 - $15,000 =
$135,000
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Question:
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What will the
seller's profit be, if the mortgage payoff is
$133,000? |
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Answer:
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The seller will
net $2,000, after going through all the time
and inconvenience of a traditional sale. What
appears to be $17,000 in equity ($150,000 sale
price - $133,000 payoff) is really a $2,000
profit. |
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Question:
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What if the
seller's mortgage payoff is higher, say
$140,000? |
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Answer:
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The seller will
have to pay $5,000 out of
pocket just to sell their house. What
appears at first to be $10,000 in equity
($150,000 sale price - $140,000 payoff) is
really a $5,000 shortage. |
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How much longer
can you afford to wait?
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