Home Selling in 19119>Question Details

Brenda, Home Buyer in 19701

Lisa D.G. Rosenblatt what do you mean by only paying one commission when I sell my house

Asked by Brenda, 19701 Thu Sep 17, 2009

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In that study the median home was a 3 bed 2.5 bath on a 1/4 acre lot for 599,210.00. This study was also completed in August of 2007 using data from the peak of the sellers market. It would leve me to believe that at that price range and an aveage seller age of 47 that the sellers were a little better educated that the average person, may have known the potential buyer of the buyer before the sale, and were selling the home in a time that in some areas all you had to do was stick in the yard to get the home sold.

The data was also from a very wide spread sector , This is their data pool!
"We address this question using a unique data set pertaining to sales of faculty and staff homes on the Stanford University campus."

Most universities let incoming professors know of any properties near the campus available for sale to incoming faculty or staff as a courtesy to outgoing staff. I know my wife is an adjuct at a university.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sun Oct 18, 2009
James,

Yes, that figure was in the sales result that was used in coming to the conclusion that even with that fact, the study found no evidence that the use of a broker significantly affects either the selling price or the initial asking price, though it does lead to more rapid sale. the further conclusion was for the median home in their sample, a 6 percent sales commission totaled $34,000, a steep price to pay for the value rendered. However you failed to mention those conclusions.

There is that "always" word again:

"Also if someone is selling to family members they always get the price that they want!"

I don't believe that for a moment.
0 votes Thank Flag Link Sat Oct 17, 2009
Rock that was not out of context but under the sales results for FSBO transactions. Also if someone is selling to family members they always get the price that they want!
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sat Oct 17, 2009
Alan,
Now as I look at that again, it does strike me as funny for some reason or the other. lol

Okay. How about this? "Always" is not always the best word to use.
0 votes Thank Flag Link Sat Oct 17, 2009
I love that phrase, Rock.

"always is sometimes not the best word to use"... did you hijack that from Yogi Berra?
0 votes Thank Flag Link Sat Oct 17, 2009
Alan May, Real Estate Pro in Evanston, IL
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"Rock don't forget that 44% of sucessful FSBO transactions were sales to friends or family according to your Stanford report. They report that the property was never "on the market".
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Hey James, nice job of taking something out of context. That figure was used to explain some of the disparity in selling price that Realtors brag about when speaking of FSBOs as when selling to friends and family homes are sometimes discounted by FSBOs. Regardless, my previous post was not meant to be seen necessarily as an encouragement for Brenda to do a FSBO, but more to set the facts straight, and that "always" is sometimes not the best word to use.
0 votes Thank Flag Link Sat Oct 17, 2009
Rock don't forget that 44% of sucessful FSBO transactions were sales to friends or family according to your Stanford report. They report that the property was never "on the market". So according to the Stanford report 56% of closed FSBO transactions were properties that were advertised as being for sale.

Brenda if you decide to market your hame yourself according to Stanford you almost double your chances of a sale if a family member is looking for a home!

It is to bad that they could not find people that could not sell their property and use that in the reports also. Like the guy that I talked to a couple of years ago. I let him know that the comps in the area would support a high 500K price on his home. He is terying to sell it FSBO for 2 years at 999,990.00. When he gets that price in 5-7 years due to appreciation he will have sucesssfully sold at his original list price!
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sat Oct 17, 2009
Brenda,

If you are contemplating the selling of a home as a FSBO, you may be interested in the blog attached to the link below.

http://www.trulia.com/blog/rockinblu/2008/08/thinking_about_…
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"Figures have always shown that with a realtor, the net effect to a seller is always more than by selling privately (when the seller thinks they are not paying a commission)."
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That statement is simply untrue. Lisa, I have unbiased sources to back up my statement. Now show me your unbiased sources for your figures.

http://faculty.wcas.northwestern.edu/~ane686/research/fsbo.pdf

http://www-siepr.stanford.edu/papers/pdf/06-41.pdf

The results of a Consumer Reports study that appeared in their Sept 08 issue also stated that 82% of their respondents to a survey who sold with the help of an agent received $5,000 less, on average, than what their original asking price was. On the other hand, almost all of those who sold their homes on their own who responded, stated that they received about what they had originally asked.
0 votes Thank Flag Link Sat Oct 17, 2009
Either you are paying the broker or you are paying the buyer. By paying the broker a seller will get the greatest exposure, subsequently getting more showings, and more offers, netting more $$ to the seller. Figures have always shown that with a realtor, the net effect to a seller is always more than by selling privately (when the seller thinks they are not paying a commission).
0 votes Thank Flag Link Fri Oct 16, 2009
OK me again.. I just went and read Mrs. Rosenblatts answer. I think she is saying that she can market your home for a set commission. And she has the knowledge and expertise to it quickly and at the correct price.
OR you can sell your home and take the chance of not getting the price correct and or take forever to sell. Or maybe spend tons of your own money on advertising. In this respect you are taking the money that she would charge in commission and throwing it away on advertising and marketing the property yourself. Or worse yet not pricing right and giving the buyer a huge advantage. In other words you would give the commission to the buyer by not pricing right.

She is a smart cookie.. give her a call or at the very least go check out her web site and learn all you can. Buyers do not fall from the sky these days. And if one does then you have the worry of hoping they can obtain financing! Even buyers with pre approval letters have problems in todays market getting to the settlement table. LOANS ARE TOUGH TO GET RIGHT NOW! Even good and credit Worthy people are getting hit hard.
Please do not think this is an easy game to play. Because you are playing with the one of you biggest investments you will ever purchase. Play it right.
0 votes Thank Flag Link Fri Sep 18, 2009
Or it could have something to do with a discount broker. Sometimes they sell the seller on a lower commission. However that only hold true if the listing agent sell the home. if a buyer agent brings the buyer then the commission must go up to cover the buyers agent commission. Can be confusing to someone who really is not in the Real Estate world.
0 votes Thank Flag Link Fri Sep 18, 2009
Not sure what the question is? You pay commission depending on the area you live in..... and what the going rate and listing Broker states. When you list your home if commission is 6% that means you pay 6%......... 3% to the "listing agent" and 3% to the "selling agent".

The listing agent represents you and your interests and the buyers agent represents the "buyers".
There is only one commission to the seller that covers both sides of the sale.
0 votes Thank Flag Link Thu Sep 17, 2009
I think she means that if you sell your house yourself and a buyer has a realtor and they ask for a commission you would pay maybe 2.5%-3% if you agree versus the average 5-6% to pay two realtors on a transaction.
0 votes Thank Flag Link Thu Sep 17, 2009
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