Home Selling in Bellflower>Question Details

Juan, Both Buyer and Seller in Bellflower, CA

How much will you charge if I already have a buyer? My house is not listed.

Asked by Juan, Bellflower, CA Thu Feb 21, 2008

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Mot,

Hi, if you have a buyer you can do what is called "a one party show". There are many agents that represent both the buyer and the seller, "dual agent". As far as the commission, this is something both you and the agent would have to negotiate, but in most situations like this the commission is often less that the usual 6%. Also, the buyer needs to be disclosed that he or she is going to be represented by the sellers agent.

Good luck with the sale of your home and if you are still interviewing agents, would love to talk with you.

Lou
Web Reference: http://loubandb.com
2 votes Thank Flag Link Thu Feb 21, 2008
Unless the agent is your nephew, I can't imagine the circumstances, under which, you would agree to give any percentage to a real estate agent, if you've already found a willing and able buyer.

A real estate attorney can handle any of the aspects of the transaction that you need at this point. If you want to give a percentage of your sale to a Realtor, because you feel more comfortable using a Realtor, that's your choice, but, in my opinion, you don't need one at this stage.

A "one party show", or the "loaded question" would only provide Lou and Shawn with extra funds... and mostly likely the result would be the same, except you would be poorer.

Although, Shawn might then be able to afford some "paragraphs" and a spell-checker, and maybe you could write it off as a charitable donation.
3 votes Thank Flag Link Thu Feb 21, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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Mot
I realize that you did not ask this question, but I confess that I am surprised about one thing.

How do you know that the price the buyer is paying is a fair price?

There are two sides to that issue. One is that because the home has not been exposed to the market, the Fair Market Value has not been determined...except through Zillow. So let us simply agree that Zillow's price is your price.

Two, there is no law that says the buyer cannot pay more than a home is worth. If the buyer can get a lender to finance the loan, so be it.

So this leaves you with the last, largest part of your question; You a responsible to complete all the paperwork any olther real estate transaction requires. So, like one fellow said,, get a real estate attorney.

Now, I just have one more question. Let's pretend that instead of your house, your single biggest financial asset, you are on trial for a crime. If you win, you get $200,000. If you lose, you get $100,000.
Your hire an attorney. He represents both the prosecution and you as his defense council.

Who is your advocate?
What happens if there is evidence that would clear you of the crime, that the other party knows, but because of attorney cloent prviilege, the attorney cannot tell you. So you end up losing and $100,000. But you never knew about the evidence, so you don't really know that you lost anything, exepct you lost the $100,000.

What Realtors bring to the tatble is the role of AGENTS. You have an agent negotiabing your behalf, and the buyer has an agent netiating on their behalf.

You might be interested in know that in the state of California, lawsuits filed in real estate transactions are filed 70% of the time by the buyer. Wouldn't it be a shame if the buyer finds some problem with the property or transaction, and sues you? Who would defend you? You have no errors and omissions insurance.

What if the inspection reports reveal a problem. Who negotiates for you? the attorney. Who negotiates for the buyer?

When I am representing a buyer or seller, in most cases I can prove that I actually saved my client more than I was paid in commission.

What happens if the buyer cancels? Cannot obtain financning? Backs out of the deal at the last minute?

Sorry to rain on your parade, however let me ask one more thing. If I had your record in real estate transactions, would you hire me to sell your home, even I would do if for free?

Caveat Emptor.
2 votes Thank Flag Link Thu Feb 21, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Mott... please don't price your home based on any Zestimates from Zillow. Their zestimates are notoriously off (both high and low).

If your neighbor offered $350.000, and you're planning on listing at $399,900... then you don't already have a buyer... all you have is a verbal offer, and for less than you're willing to accept. Oddly enough, when push comes to shove those low verbal offers from neighbors evaporate when you tell the neighbor that you're ready to negotiate their offer, or even accept the offer.
2 votes Thank Flag Link Thu Feb 21, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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Gary,

I suppose, if someone wanted the comfort of having a Realtor to call, and assist with the scheduling and deadlines post contract, 1% would be a very reasonable amount, and I could see that value. A real estate attorney might be less than that, but would likely be less involved in the transaction, and would only handle the paperwork, and some deadlining... but would not be actively involved in chasing down the lender, and the mortgage commitment.

I also agree with you, while there's only been one post on this thread, about "standard commish"... but it is bandied about on these threads in general a lot... both as listing standards, and co-op standards, and it should stop.

btw... what happened to your Avatar... I was just gettin' used to it?
2 votes Thank Flag Link Thu Feb 21, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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Mot,

If you already have the buyer, you don't need to pay any commission to a Realtor. Contact a good local real estate attorney and have him/her write up the offer, assist you through the negotiations, supply and review all necessary documents. Make sure your buyer has a pre-approval and has his/her financing lined up (your attorney can help here too).

That's all you need if you've already found a willing and able buyer.
2 votes Thank Flag Link Thu Feb 21, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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Thank you for all the answers.

I asked this question because I don't know how to prepare all the documentation to complete the transaction.
As a reference my house is in Bellflower, California and the Zillow estimate is $438K. I talked to a realtor who recommended a listing price of $399,999. A neighbor friend went to my house an offered $350K. I think that is a low offer but I asked the same question to the agent who said that she would charge me 4%.
Because of personal reasons I will not list my house now but if everything goes well I will list it as soon as possible.
Thank you again,

Mot
1 vote Thank Flag Link Thu Feb 21, 2008
"Mot"

I handle this type of paper-shuffle quite often and what I do is maintain the integrity of the transaction. In other words, I (meaning my staff and I) put the buyer and seller on the timeline to make sure that nothing is left out and nothing is forgotten.

All of the various appointments (appraiser, inspector, surveyor, title, bank, VA inspector, the list goes on) are met and kept and that the buyers and sellers costs are kept to a minimum. (sort of like contractor pricing)

My fee for this is 1% of the transaction price in most situations, but depending on the amount of the transaction, it may be less. I am certain that you can find a good REALTOR who will assist you with this, but make sure that you get the full service as some REALTORS will certainly tell you that our job just begins when we find you the right buyer..... Holding the transaction together until closing is where the real work is. If you don't know anyone, I know a Long Beach Realtor who does this type of work. Let me know.

Now to my fellow REALTORS.....A quick word in my office if you will....

I missed that whole class or part of the REALTOR handbook where it says what a "typical", "Usual", "Normal", or "traditional" commission is. I continue to see it referenced here in Trulia by REALTORS which must mean that it exists, but everything that I have read or learned points to that being illegal according to the Federal Laws which are called....Oh, if I remember correctly, ANTI - TRUST LAWS.


So if someone would be kind enough to point out to me the part where it says that I am supposed to charge X%, I would like to see that, Post Haste.....if not, please do not use that terminology. (Unless of course you are just dying to see what a Grand Jury room looks like)

Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
1 vote Thank Flag Link Thu Feb 21, 2008
Thank you for all your answers. I sold my house and paid 1% for the sale but the same agent helped me buy a house and he got 3% from the seller.
0 votes Thank Flag Link Wed Dec 31, 2008
If you want to sell your home and already have the buyer but want to make sure all the paperwork is proper and both parties are protected properly I will put the deal together for $1,000.00
This will enable you to get out and move on with your life while providing the buyer with the home of their dreams and we can complete this within the week......866-496-3116 ask for Matt
Web Reference: http://www.house2riches.com
0 votes Thank Flag Link Tue Dec 30, 2008
Speed is critical in a declining market.
Every real buyer is working with at least one agent, and there are over 100,000 agents in L.A., Orange, Riverside and San Bernardino Counties. Properly exposing your property to all of them gives you 10 times the power of any local marketing. Our sales record proves this.





Simple Listing Terms



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Length:



30 days, with the right to cancel anytime for any reason.

No trick clauses. We're easy to deal with and do enough
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Web Reference: http://www.bennychavez.com
0 votes Thank Flag Link Mon Dec 29, 2008
Hi Mot,

I offer a variable rate commission schedule. If you find the buyer and there are no other agents involved, I charge 1% to handle the transaction, including drafting the contracts, making sure all the disclosures are done correctly, and closing the sale.

Let me know if you are interested.

Mark Shandrow
Keller Williams Realty
562-364-9505
0 votes Thank Flag Link Thu Feb 21, 2008
Back again. Sorry folks. I took a 5 hour mini vacation. Anyway, great answers here and I really like what Keith had to say.

Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes Thank Flag Link Thu Feb 21, 2008
Mot,

Whom ever you choose to represent you, if that is the way you are going to go, do not rely on Zillow. The best way is to have your agent run comparables in your neighborhood. He or she can pull up all the solds, pendings, and actives and compare these findings to your property. Keep in mind any upgrades and/or improvements that you have done should all be considered when you price your property. Also, there are a lot of short sales, foreclosures and REO's on the market, something you need to consider when pricing your property.

Good luck!

Lou
Web Reference: http://loubandb.com
0 votes Thank Flag Link Thu Feb 21, 2008
Thanks for elaborating. Many sellers worry about buyers they know surfacing after they list, and then they'll owe commission. Most of these buyers don't put their money where their mouths are when push comes to shove. One of my listings was held up for 4 months before I listed it. They had a "buyer", sent out contracts, had an inspection....but the buyer's wife didn't want the house. They were disappointed that their attorney didn't push him to commit, but attorneys don't do that, agents do it. Attorneys also don't qualify buyers. These folks lost a good year to their search for a buyer on their own, in a down market, and sold for much less than they would have. In another case, a seller told me someone from their office wanted the house. When the person finally contacted me, well after they were listed, it turned out they had a house to sell before they could buy anything, and the house wasn't even listed! The commission is well worth it when you consider all the headaches and delays the agent saves you.
0 votes Thank Flag Link Thu Feb 21, 2008
Thanks ELV!S you make a lot of sense.

I know that is not a formal offer and that's why I will list my house when ready. Hope that it will be soon.
0 votes Thank Flag Link Thu Feb 21, 2008
Dear Mot,

That is a load question! How much would depend on how much work one does in most cases. Although I agree to some regards that if you have a buyer you may not need an Real Estate agent and you may use and Attonery their is a reason why some many people sell with the aid of a broker, For one we coordinate the sale, negotiations, inspections and few other minor thing depending on where you are, In some state such as FL the agent draw up contract and make the deal and the title company close it, No I am not saying dont use an Attorney I have many that I work with and for the most part have no problem but at time there can be a bot oof EGO that come along and it is good to have a buffer from you and the buyer or an attorney at times. As well I see you are down as a potenial buyer your self I would say then you could get a buyer broker that represents you and have them work on a reduced commissions basis on your sale and them help you find that new home or investment assuming you are not relocating. I would talk to a few brokers and find out what works best for you and then make the deal happen based in education not a few dollars saved. For is the deal goes south whos there working to sell and unless you are going to market you on home in the day and age I would say hire an agent to help in the sale and marketing to be better prepared to make the deal stick. As well that agent can then help you to find a buyers broker to help you purchase if you are relocating out of the area. let me know if I can help good luck
0 votes Thank Flag Link Thu Feb 21, 2008
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