How Can I Save Money On The Sales Commission?
I am looking at a property in No. VA where the market is increasing in value rapidly. I can buy a new construction TH for $484K. It would be delivered in summer 2005. I believe I can sell it for $515K conservatively. The profit would be $31,000. I have a sales agent who would do 4% ($20,600). I would make $10,400 prior to taxes. Is this a good return? Any ideas how I can get around the buying agent's 3%? That seems to be where all my profit is going. Thanks for any comments.
Well I remember one time (long before I ever started in REI) that when I was selling my house me and the buyer were close but couldn't agree on the price after about three offer/counteroffer deals and I told my realtor...."Well it's up to you and the buying agent ...either you guys take it out on your commission or the deal is dead. They took it. You can either jack the price up to cover the agents fees or make them suck it up. Always have a set price of how low you are willing to go then don't budge. I'm not sure how good a profit margin that is as I never do flips...I'm a rehab guy that always holds and rents
Hi.
How are you coming to your sales price for next summer? At least that is the excellent time to sell in this area.
It is my estimate based on the area (Fair Lakes in Fairfax County) and that the same townhome is on the market now (from an earlier investor) for $499. Does this sound faulty? I am thinking it could be more.
InvestorInNE: $10,400 profit on a $484,000 deal! I would pass. Herb-WPB, FL
Are you familiar with the area.
I was thinking it could be more, too, but NoVa has been crazy so I don't pay much attention to it.
I was wondering if the realtor is a contact whom you have done business with or if they are involved with the purchase. Did you post that you will pay the buyers broker 3% on the sale? Will you sell before you close?
Do you have a unit under contract now?
Investor,
I would pass on this one. Yes you'll make money in this perfect world that you explain. Yes this could happen but to spend 485K to make 10k just isnt realistic.
ceinvests - I'm pretty familiar with the area. I think $515 is conservative, but I don't want to have unrealistic expectations so I'm running my numbers off of the $515.
The realtor is involved with the purchase (for which she's done nothing) so she's agreed to do 4% on the sale. I can't sell before I close. The builder doesn't allow assignments.
Do buyers still view properties that are advertised as "buyer pays broker 3%"?
Thanks.