My house won't appraise for enough to pay 6 or 5 or even 4% commission. I'd love to have representation but .... any suggestions?

Asked by Motivated, New Smyrna Beach, FL Thu Mar 31, 2011

Nice home, good neighborhood but just found out two nearby homes sold for much less than I was asking, I took my home off the market after realizing I would net much less than I thought.
So what's the most creative way to sell a home when you can only pay 3-4% commission from proceeds (any more and it comes out of my pocket)?
I'd love to sell my home!

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Answers

11
Mack McCoy, Agent, Seattle, WA
Sat Apr 2, 2011
Well, you asked.

I will tell you that if I knew of a more creative way to sell a home, I would use it. Millions of homes are sold every year by real estate professionals and by private parties, and nothing has caught on.

If you recognize the value in hiring a full-service agent, and you don't do so, then essentially you're going to settle for less value, and in this equation, that comes out to less money at the closing table.

You can, if you wish, get caught up in the long-standing debate between full-freight and discount brokerages as to whether you can, in fact, get equal results at a lower cost; You can even bet on it!

All the best,
1 vote
Gayle Gilibe…, Agent, Fort Worth, TX
Fri Apr 3, 2015
The Seller's market changes daily and definitely improving in the DFW area.
0 votes
kegibson, Home Buyer, Fort Worth, TX
Sun Mar 29, 2015
You could try having a appraisal done to get an idea about what the home would sell for, and then try a flat fee real estate company. However; they will have limited knowledge of the home market and want do much if you need any advice when the home is under contract and in negotiations. Going this route does have risk involved.
Contact me if you decided you need a real estate agent. Good luck.

Sincerely,
Keith Gibson
Coldwell Banker Residential Brokerage
kegibson@aol.com
0 votes
Pamela Rohan, Agent, 76162, TX
Wed May 7, 2014
Hi Motivated Seller!
I just sold a home in Benbrook for a couple in the same situation as you. Have you sold your home yet? I am a transaction agent and will list your home in the MLS and market it for $499. Call me at 817-729-8664 for full disclosure of my services.
Pam
0 votes
Pamela Carri…, , Reading, PA
Sun Apr 3, 2011
One of the things to take into account is, "How much it costs you to wait". For instance. Your mortgage payment, plus homeowners and taxes add up to what? Take that figure and figure out if coming to the table with a check to get out from under that monthly amount is worth it.

The commission pays for representation, advertising, fielding calls, Open House arrangements, negotiating with an interested buyer, and many hours of "behind the scene" work. It is in your interest to get a good agent from a well known company.Set a fair price and get on with your future plans.
0 votes
T.E. & Naima…, Agent, Dallas, TX
Sun Apr 3, 2011
Many Realtors will give you an estimate of what it should sell for. Just because some nearby houses sold for less than you're trying to sell for does not mean you can't sell at price you want. Ask a Realtor for a CMA.

We are just entering the peak season to rent and sell. You may have to wait some to get the price you want, giving time to clear off the lower priced houses in the neighborhood, if you can wait.

If you just can't wait, then either you'll be bringing money to the closing table, or you'll be asking the bank to accept less. They don't just do that on a whim, though. If you have the income/assets to pay the shortage, they won't agree to take less.
Web Reference:  http://www.SumnerRealty.com
0 votes
Motivated, Home Buyer, New Smyrna Beach, FL
Fri Apr 1, 2011
Thanks for the input. I understand the value of a good agent, and I would prefer to have full representation. However I don't think the answer is black and white. Either use an agent or go FSBO.

I wouldn't even consider trying to sell it without listing it in MLS. Haven't considered a short sale as it is still worth more than what I owe, just not enought to pay commissions. I know if I drop the price enough it will sell as I got plenty of showings when it was listed. I guess I need to do some research on discount broker services. I want to keep my credit clean.
0 votes
Michael Emery, , Minneapolis, MN
Thu Mar 31, 2011
You might want to consider a flat fee or reduced service brokerage to sell your home. The difference between using a discount broker and just selling it on your own is the discount broker will get the home listed on MLS. And with 80 plus percent of homebuyers starting their home search on the internet, it's crucial to be on MLS.

Just be aware that with a reduced service or discount broker, you will have to do your own marketing, set up showing appointments, do your own open houses, etc. When you get a buyer, they will often help with the paperwork and setting up escrow for an additional flat fee.

Short sales only work if you are financially strapped and the bank is willing to take a loss. Plus doing a short sale can (in the short run) damage your credit. If you think you might qualify for a short sale, first talk to an attorney and your lender. Only then should you talk to an agent.
0 votes
Mack McCoy, Agent, Seattle, WA
Thu Mar 31, 2011
Many problems, Motivated Seller, require some compromise to solve.

Here, you face the problem that without a good agent, you may not get a good enough price to escape without writing a check, with a good agent, you are certain you will not.

Frankly, I think your two best choices are to put aside selling, or get out the checkbook.

All the best,
0 votes
Doc & Ellen…, Agent, San Antonio, TX
Thu Mar 31, 2011
You might look into doing a "Short Sale", where the Lender agrees to take less than the full amount you owe as a full settlement, and "let you go". If you choose that route, find an agent who specializes in Short Sales and who is certified to do so. I attached a link to help you start. Ask for their track record - both successes and failures. Check how many of their listings were Cancelled, Expired or Withdrawn.

Your chances of selling it on your own are pitifully low - according to NAR, only 9% of those who tried to Sell By Owner in 2010 were successful, and of those, HALF already knew the buyer. So, 4.5% actually succeeded.

Get some help! Since you won't get anything out of the sale anyway, and since the Lender pays your agent, and ALL of your costs, get the best agent you can find.

Good luck,

Doc Stephens, REALTOR®
0 votes
Dan Tabit, Agent, Issaquah, WA
Thu Mar 31, 2011
Motivated,
Long before the current downturn in the market when most people didn't know what a short sale was, people brought money to the table when they owed more than they could get for their homes. Agents bring value to a transaction. A good agnt will maximize your price, terms and final net. Trying to sell by owner limits your market to buyers looking to save themselves the commission. Using a limited service company may leave you exposed in some areas of contract expertise and negotiating against professionals.
I'd suggest getting the best agent available and try to minimize your loss or stay put for a while. Sorry.
0 votes
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