Selling Real Estate Privately

JimmyHo

I'm looking at selling a condo privately to avoid the 5% commission if I go the traditional route. Anyone sold a condo or house privately? Was it an easy process? The building that the unit is located in has had a few sales recently so determining the asking price is not too difficult. I am also considering using Comfree.com's services so I can list it on MLS (realtor.ca) which is the main advantage of using a real estate agent IMO. I still get the exposure of MLS but at a fixed price. Anyone used Comfree before? I may need to still to pay a commission to the buyer's agent, but it will still be a better option than paying a full 5%. Thoughts.

compuease

Issue I have with selling privately or even with comfree is the buyer expects to get that savings or at least a good % off the price.. Definitely takes more time unless a real hot market.

Milo

Not to mention all the little legal things that an Agent takes the hit on if there is a problem afterwards. As for that 5%, talk to an agent, you may find that the fee is negotiable, particularly in a seller's market. Less work means an easier/faster sale, thus quicker cash (if perhaps a little less than standard).

djgolfcan

There are too many variable when selling a property. I'd use a Real Estate Agent. You can negotiate the 5% down to 4% probably and depending on the selling price, even less.

Agents have Errors and Omissions Insurance that covers them if they screw up or forget anything, you will not. That means if the buyer sues you, you are on the hook for legal expenses and payment of the settlement.

pkrfce9

If you are not in a rush just sell it yourself. You will have to list on mls and offer commission to the buyer agent. Read up on it first and save a few grand for that pca trip

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JimmyHo

Haven't really considered the insurance issue. Is it that common that an issue arises? I realize I may have to spend more on lawyer fees but don't think the fees will be anywhere near the cost of using an agent. With Comfree, you also have a brokerès name listed on the listing on MLS so the purchaser doesn't really know what your arrangement is with them so they may not try to negotiate the price down. Also, you may get lucky and have someone interested in the property that doesn't have an agent and you can save the full 5% which would be huge.

pkrfce9

It is all FUD

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JohnnieH

compuease wrote: »

Issue I have with selling privately or even with comfree is the buyer expects to get that savings or at least a good % off the price.. Definitely takes more time unless a real hot market.

Having just sold a house with ComFree is agree with this statement.

Selling privately you'll only get the max out of your property if you and selling a hot item that is highly sought after. If your place sits for awhile you are leaving yourself open to low-ballers (like we did in New Hamburg) and you may not get what you think your place is worth. And you are at the whim of buyers who aren't willing to deal with YOU and not a professional agent. After all, the buyers who won't be paying an RAs fee, the seller does, right?

My advice is call a bunch of agents and get the lowest fee possible, if you want to get the highest offer. Otherwise, call ComFree and tell them I sent you. You'll get $50 off their fee.

Milo

pokerJAH wrote: »

Haven't really considered the insurance issue. Is it that common that an issue arises?

Think about the glut of DIY shows on TV these days, not to mention Mike Holmes scaring everyone into thinking that ALL homes are about to fall down around their owners ears, and I think you would be bucking long odds that any buyer would NOT come back to you about "something" and looking for $$$.

I realize I may have to spend more on lawyer fees but don't think the fees will be anywhere near the cost of using an agent.

If anything, I think this is where you might be able to save some cash. There has to be some sort of boilerplate legalese forms that would cover the sale of your property somewhere on the webz.

With Comfree, you also have a brokerès name listed on the listing on MLS so the purchaser doesn't really know what your arrangement is with them so they may not try to negotiate the price down. Also, you may get lucky and have someone interested in the property that doesn't have an agent and you can save the full 5% which would be huge.

See bolded . . .

BlondeFish

You won't save anywhere close to 5%. Isn't the buyer agent commission that you have to pay, 2.5%?

When my spouse and I made the blunder of selling our penthouse condo in downtown Toronto over a decade ago (instead of keeping it and becoming half as rich as pokerJAH ), I first tried to sell it privately. I later negotiated with an agent specializing in downtown condos to reduce the commission to the minimum - 1% for the seller agent and the non-negotiable 2.5% to the buyer agent. Since you put a high premium on your time/fun and don't mind paying high rake, then choosing a decent agent out of the many firms willing to accept a reduced ~3.5% commission is probably your best bet. Instead of doing everything yourself to try to save 1% rake, just spend all that time doing what you enjoy - like verbally harassing poker celebrities at WPT Fallsview!

pokerJAH wrote: »

Also, you may get lucky and have someone interested in the property that doesn't have an agent and you can save the full 5% which would be huge.

JimmyHo

Update - decided to try my luck with an agent and put my condo on MLS a couple weeks ago. Was able to get the total commission reduced a little with a total commission of 4.5% and if my agent brings the buyer down to 3.5%. After a drop in showings due to the recent weather, finally got my first offer today . Now the fun negotiating begins.