Kashif

I agree with Rick. You really need to figure out your total costs and don't forget to incude property taxes and the chance that you don't find a renter for a few months. I would then compare this to the amount of equity you think you could reasonably collect in the future and depending on how long you want to hold the property this will give you a better idea of your burn rate. Hopefully the the numbers will be so significantly different that it will allow you to make the choice between selling and renting. Also, don't forget to factor in the interest rate that you can claim on your taxes. - Fri Jul 18 2008, 13:48

Yes. I figure I'll have to take the hit, because staying her to ride the market will not result in any significant gains. I also did an analysis for renting the home out, but my 'burn rate" or the amount I'm spending to live here ( interest payments and all) is far greater than the amount of equity or rent I could reasonably collect over the next few years. I'll get out now by accepting the next counter that will come in today. If all goes well then I'll try and make up some of the loss in the purchase of a new property. - Tue Jul 15 2008, 08:12

Thanks everyone for the insight it was helpful. I agree that in the big picture the commissions are only a very small factor. I just wanted to get a better understanding of what the perceptions were and how a few thousand dollars could influence the sale of a home.


My home is still listed on the market and we have just passed 100 DOM. I've dropped my price from 725k to 699k and as of June have listed in the mid 600k. I've been offering the typical 3% buyer and 2%seller from April08. Since my last price adjustment ( June ) we have seen an increase in activity. I've had only 3 real offers, during that period each around the low 600s. Ironically they all came in at the same number, which was the sale price of the home in 2004. At this rate, I will certainly be taking an 80k loss. I just countered one of those low ball offers today with mixed feelings. I guess my next step will be to increase the buyers commission to 4% and drop the price a little bit more. Hopefully it will generate some more interest and a positive outcome. Thanks again.

Kashif - Mon Jul 14 2008, 14:30

Thanks everyone for the input.

Keith - Just put my home on the market about a week ago. I'm working with a discount broker, which I think unknowingly has made at least one local agents working for a large firm pretty upset.. The local agent farms this area on a regular basis. I think he feels like he owns the neighborhood.. I guess he doesn't like seeing sings from other firms in his area ( my home has a fair amount of marketing visibility)as far as signage is concerned). I initially contacted this local agent when interviewing a number of other people. The local agent wanted a 6% commission structure so my my wife and I ran the numbers and concluded that it was not in our best interest. to go with them. So we went with another a discount broker. When our agreement was signed, and the property was placed on the on the MLS the local agent came directly to my home to share his thoughts... ( based on the content of our discussion I'm sure he came very close to violating the Realtor code of Ethics a number of times). Among the things he discussed was that Real Estate agents don't like working with discount brokers and that I should cancel the listing agreement because they spoil the market and it will be unlikely that I'll get any offers. I haven't shared any of this info with my agent , because I don't think it will add any value plus the local agent had some valid points. The pricing structure I have now is 2.5%(to the Buyer) and 1% (listing). I'm not sure if I should increase the buyer commission percentage or offer the buyer agents a check "paid directly to agent "as an additional incentive because I realize that my discount broker has limited marketing capabilities. Regards - km - Wed Dec 5 2007, 00:31