I have three questions about the costs associated with selling a home.

Asked by Brooke, Chicago, IL Sat Feb 21, 2009

1. Does the seller include the cost of tthe broker's commission in the home price?
2. When is the commission payment due?
3. What is the average number of days a property is on the market in my area?

Thank you,
Brooke

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9
Phil Burnsti…, , Chicago, IL
Sat Feb 21, 2009
Wayne answered all of the questions associated with a home sale very concisely. Prices will very, but you can expect to see that 2005 and earlier is the norm on prices of resales today with few exceptions. You can expect to purchase at these levels as well.
1 vote
Anna Niklarz, Agent, Arlington Heights, IL
Sat Feb 21, 2009
Brooke,

When you interview an agent/s you will be presented with a net sale amount, the Realtor will provide you with expenses based on the price of your property and mortgage pay off, as well as title costs, attorney and transfer stamps. The commissions, for both the buyer's agent and listing agent is due at closing, and it is deducted from seller's proceeds. When establishing your listing price you need to take all of your costs under consideration.
The average market time for your area is 6-9 months, there are many factors such as: how well is the property priced, condition of property, price range, location.
If you are interested in interviewing few agents I can refer some top Realtors in your area, you can send me an e-mail aniklarz@remax.net

Good Luck!
Anna
Web Reference:  http://www.AnnaNiklarz.com
1 vote
Maria Morton, Agent, Kansas City, MO
Sat Feb 21, 2009
1. The listing broker's commission is paid by the seller out of proceeds from the sale. That commission is usually split 50/50 with the buyer's side broker. Both brokers distribute the agent's commission according to their agreement with that particular agent.
2. Commission is paid at closing along with all other closing costs. This is usually handled by the title company closing the sale.
3. Days on market vary significantly from neighborhood to neighborhood and even block to block. You need to ask an agent in your area to go over those numbers with you.
1 vote
Christopher…, Agent, Chicago, IL
Tue Feb 24, 2009
Dear Brooke,

Most of the answers here are pretty accurate, but I have just a few things to add.

To answer your question #1 maybe a little differently than you asked it; the amount that you would potentially pay a broker to assist you with the sale of your property is an amount that you should "deduct" from the sales price of the home. So when determining your eventual "yield" from the sale of your property, you should subtract the brokerage commission from the sales price (as well as all of the other fees listed below).

#3 is too hard to answer not knowing exactly where you are in Chicago and what type of property you're attempting to sell (and what condition the property is in). Chicago's many neighborhoods and census tracts offer vastly different selling scenarios, so you'll want to consult with someone knowledgeable about your specific geographic area of the city. Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.mayagentchris.com
0 votes
Edith Karoli…, Agent, Winnetka, IL
Sat Feb 21, 2009
1. A seller in cooperation with a trusted Realtor should decide on the original list price based on
a) their own need to sell and b ) the market conditions at the time of listing / selling (which
means price it very competitively in today's market so that buyers will actually consider your
property) then listen to your Realtor and discuss the comps carefully and decide on the condition
of your property and how well it shows compared to competing properties.....

2. The commission is determined as a percentage of the final Sale price and is due to the listing
brokerage company at the time of closing, the commission check is usually cut at the closing table
from the seller's proceeds

3. When listing your property your listing agent will be able to provide you not only with similarly sold properties in your area, but also with those competing with you and will give you an insight into how long properties have been on the market. These days usually much longer than we are all used to!

The better your property shows and is updated, the better the location, and the better and more competitive the price the faster it will sell....

If you need a more detailed market evaluation initially without home visit if you like, e-mail me your address and detals, size and style of property, lot size and any recent improvements and I will e-mail you a pre-market evaluation....
E-mail me directly to edithsellshomes@gmail.com
Edith YourRealtor4Life Working always in the very BEST interest of her clients!~
0 votes
Tim Snay, Agent, Westlake Village, CA
Sat Feb 21, 2009
Hi Brooke,
I am not sure you received the answer to question 1 you were looking for. When you and your realtor set a listing price for your home it should be based on what you honestly think a buyer will want to pay for your property. The cost of the commission should not be factored in. However, if you hire a great agent and listen to their advice. You should be able to get slightly more for your home than if you tried to sell it yourself. A good agent will be able to advise you on how to show off your home to its best advantage,. The agent will be able to market your home to attract the maximum number of buying prospects and buyer's agents. The more interest in your home, the better the chances of a strong offer. If you home looks sharp and gets maximum marketing exposure, you will get a better price for your home than by selling it yourself or using an inferior agent. Best of luck to you.
Web Reference:  http://www.TimSnay.com
0 votes
Kale Realty, Agent, Chicago, IL
Sat Feb 21, 2009
Hi Brooke

All these agents gave great answers!

If you looking to sell in the uptown area and would like to save thousands on commission please check out my company. http://www.Kalerealty.com 312-939-5253
We offer 1.75% full service listing commission or a $299 Flat Fee MLS options

Best of luck
Web Reference:  http://www.kalerealty.com
0 votes
Wayne Beals, Agent, Chicago, IL
Sat Feb 21, 2009
Hi Brooke,

As far as listing commissions go, it varies, but I usually charge 6% of the sale price. I split a portion of this commission with the buyer's agent (cooperating broker).

Please remember that there are other cost to consider when selling a property in Chicago.

1. Prorated Cook County Property Taxes, which are usually 1 year arrears. If your mortgage company is holding an escrow, some of this money should be in the escrow.

2. City of Chicago Transfer Taxes, and State of IL transfer taxes.

3. Water bill Cert.

4. Attorney, Title, Survey, Termites, etc...

I provide an estimate for my clients when we discuss a listing. I also recommend they discuss their sale with an attorney to generate a preliminary HUD-1 if they are concerned there may not be enough funds.

Many sales these days are Short. In other words, the lender must reduce the payoff to the homeowner to facilitate the sale. In cases where the underlying mortgage is more than the home will sell for in todays market, a short sale is the only option.

When the underlying mortgage is close to property value, usually then is can get confusing for the seller. Many times in these cases you will not know if the sale is short or not until the buyer makes an offer. If you don't have funds to cover the underlying mortgages and closing cost, usually the bank will agree to a reduced payoff. This can be a frustrating process, but it happens everyday.

Best of Luck.
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 21, 2009
GREAT QUESTIONS !

All listing agent should review costs for a seller therefore you are not caught off by surprise. GREAT for you start working on estimates

a) Seller pay for realtors fees - listing and buyers agent
NOTE: realtors are paid at closing via the title company

b) Closing costs - seller has pay their closing cost covers title company fees

c) Average # of days - realtor would be able provide you this info. based on area

d) Repairs - buyer will normal request minor repairs best have these issues addressed prior listing home
of course some will disclosed inspection report

e) Mortgage amount - pay paid via title company closing transfers funds to your lender
f) 2nd lien - same as E
g) tax for 2009 - title company transfer tax amount to county of money owed while you owned home
h) liens - If you have any liens on property title company pays those

I believe I have covered majority of expenses
Web Reference:  http://www.lynn911.com
0 votes
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