when a house is appraised, the realtor takes what precentage?

Asked by Debra, Racine, WI Wed Aug 19, 2009

we are settling our parents estate, brother is buying the house, no realtor. Appraised value 240,000 he thinks taking 6 % off the appraised value is customary due to the ease of the sale? offering us 225.000?

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Alan May, Agent, Evanston, IL
Wed Aug 19, 2009
your brother is sorta saying...

"if we sold it on the open market, we'd pay a Realtor 6% to sell it, ending up with $225,000 in hand, if we ended up doing that... and therefore it's reasonable for me to pay that amount to the family".

But the appraisal is supposed to represent the "purchase" price of the property... the market value price... not the "listing" price. Certainly they're no way that you can be assured that if you listed today at $255,000 (255 x -6% = apprx. $240,000)... that you'd GET full list price... or even that you'd get $240,000 in the end. The market is still unpredictable out there.

I'd suggest having a few Realtors come through, and have them give you a CMA (comparative market analysis) to see what they think the property would realistically list / sell for, and then base your "sale" price to your brother, on that.

If the brother isn't willing to pay that... then I'd say, have one of those Realtors list the property... with a "holdout", that if you can't get at least $225,000... your brother has the option of purchasing it at that price.

Good luck.
1 vote
Abe Mills, Agent, Greenville, SC
Mon Aug 24, 2009
Debra,
I would get a REALTOR or three to give you a CMA (competitive market analysis) and see just what they think it would bring. I have never heard of a sales commission coming off of the appraised value! FSBO properties sometimes have 0% commission added in!

Good Luck!
0 votes
Adam Kielpin…, Agent, Muskego, WI
Mon Aug 24, 2009
If you would simply like to sell the property without a family feud, I would suggest selling it to your brother for $225,000.

If you would like to get as much as possible with the potential for a family feud, I would suggest you take off 2.4% ($5,760) of the appraised value. If you sell it For Sale By Owner you would be offering a 2.4% co-broke commission to any Realtor who brings an offer. This would give you a price of $234,240.

I hope this helps.

--
Adam Kielpinski
REALTOR®

Office: (262) 244-0708
Toll Free: 1-866-397-7155
Fax: (262) 244-0718
adam@capitalcrownrealty.com
0 votes
Bob Caron, Agent, Swansea, MA
Wed Aug 19, 2009
If your brother paid for an appraisal from a licensed appraiser, then he should have received a relatively accurate assessment of the anticipated value of your parents' home. Of course, the only real way to value a property is to sell it on the open market with an arms-length distance transaction.
It depends who did the appraisal and for what reason. In MA, Realtors can do a Comparative Market Analysis but an appraiser must be licensed to do appraisals. If someone asked me what the selling price of their home should be I, would do a CMA using comparable properties that have sold within the last 3 to 6 months within a reasonable distance form the subject property. Appraisers use a similar approach but usually provide more details.
If the appraisal your brother received is accurate, it does sound reasonable that the selling price within the family would be discounted to reflect the fact that you're not paying a Realtor's commission.
You may want to consider obtaining a second, independent appraisal of the home and then deciding on a number somewhere between the two.
0 votes
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