Posted by Annalisa Burgos | June 9, 2009
It’s no secret that listing agents typically charge a commission of about 4 percent to 6 percent of the home’s selling price. Most sellers will price that commission into their asking price so they can walk away from the sale with the profit they want.
So if you sell your home for $300K and you agree on a 5% commission, your agent will get a nice $15,000 paycheck and you get $285K minus your selling expenses.
I know what you’re thinking — $15,000 seems like a lot. Why not skip the commission and sell the house yourself? After all, your home is in good condition in a good neighborhood, you’re well connected with a marketing background, you have the time and patience — what’s the big deal about going FSBO?
Well, today’s real estate market is very different from the one a few years ago when homes practically sold themselves. And you can’t just plop a “for sale” sign on the lawn, post an ad on Craigslist and wait for buyers to show up. (Maybe if people are clamoring to get into your neighborhood or you price the home way below market value.)
Today, homes can take as long as 6-9 months to sell. Listing agents are paid a commission once they find you a “ready, able and willing buyer.” And in this market, that’s no easy feat. Sure buyers are everywhere, but a serious buyer who’s got financing? Kinda like finding a single guy at a movie screening of “The Proposal.”
Before you decide to take matters in your own hands, weigh the pros and cons. Do you really have the time to market your listing, show your home to buyers, coordinate inspections and close the deal? $15,000 may seem like a lot, but when you add up the value of the time and effort it takes to sell in this market, it may not be so unreasonable. Besides, commissions are negotiable, and many agents are willing to work with you to get your business. If you’re just wary of working with a real estate agent, try these tips for finding the right agent for you.
And to help you get a handle on the selling process, check out FrontDoor’s Guide to Selling a Home. You’ll get a better sense of what the process entails so you can decide whether you can take this on yourself or would rather leave it up to a professional.
Posted by Annalisa Burgos | June 8, 2009
HGTV has always been about enhancing your home and home life. So it makes sense that FrontDoor.com, the real estate site powered by HGTV, is about enhancing your search for the place you call home. That means bringing you valuable tips and advice to help you make smart decisions. So in addition to our blog and large library of articles and videos, we’ve created a vlog.
Real estate topics can be dry and boring, and most of the real estate news videos I’ve seen out there are just that. As the host, I want this to be informative and fun. And as a journalist, I want this to be relevant, since today’s buyers and homeowners don’t have time to sift through all the information that’s out there.
The vlog is not meant to be fancy or flashy. It’s our way of connecting with you as that smart friend “in the know.” Future episodes will feature different topics and occasionally a special guest. If there’s something you’d like to know or have an idea or pitch for the vlog, we want to hear it. Post a comment here and we could feature it in our next episode!
Posted by Annalisa Burgos | June 3, 2009
Treasury Secretary Timothy Geithner’s job is to lead the United States out of the recession. Now he’s got another job — landlord.
Geithner assumed his new role the same way many homeowners in this market do: reluctantly.
The former head of the Federal Reserve Bank of New York listed his five-bedroom Tudor near Larchmont, a suburb north of New York City, for $1.635 million in February. The asking price was later dropped to $1.575 million, about 27K less than what he paid for it in 2004.
Unable to find a buyer, the Geithners opted to rent out the home for $7,500 a month and ride out the rough real estate market.
During a time when home prices are falling faster than a ton of bricks to the bottom of the Hudson, many sellers would rather rent out a home than lose hard-earned equity or do a short sale, where you sell the home for less than what you owe.
Being a landlord isn’t all that bad. Research the local laws and consult a local real estate attorney. If you move out of the city or don’t have the patience to find tenants and maintain the property, you can always hire a property manager.
The downside is that rent usually doesn’t cover all your costs as a homeowner, especially in high-priced markets like New York. Like other sellers put in this position, Geithner still has to cover part of the mortgage payments on $1.25 million in loans and $27,000 in annual property taxes. Ouch. Looks like the housing slump has really hit home for the nation’s top economic official.
SOURCE: Associated Press; Photo by Stephen Chernin
« Previous Page
Subscribe to this blog
Friend us on Facebook
Follow us on Twitter