Malfatron Posted July 9, 2019 Share Posted July 9, 2019 17 hours ago, freak_of_nature said: He'd get the amount of money he invested in the property back + his 3% commission, regardless. He says he typically puts 10k-15k in the property he sells as the real estate agent. What if you dont sell? Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted July 9, 2019 Share Posted July 9, 2019 10 hours ago, vike daddy said: huh? he's willing to invest 15K of his own money so to make 3% on the extra amount of the sale? that's only $450 over what he'd make selling the house as is right now. me no understand... It actually be about $1,000 extra. And I'm sure he gets to write off some of the remodeling costs. Quote Link to comment Share on other sites More sharing options...
vike daddy Posted July 9, 2019 Share Posted July 9, 2019 25 minutes ago, Malfatron said: What if you dont sell? excellent question. Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted July 9, 2019 Share Posted July 9, 2019 26 minutes ago, Malfatron said: What if you dont sell? What if I choose not to sell, or what if the house doesn't sell? I'm selling it next spring, which is why I'm considering this option. My neighborhood is hot. Quote Link to comment Share on other sites More sharing options...
Malfatron Posted July 9, 2019 Share Posted July 9, 2019 1 minute ago, freak_of_nature said: What if I choose not to sell, or what if the house doesn't sell? I'm selling it next spring, which is why I'm considering this option. My neighborhood is hot. Yes. What if you dont get an offer that you like? Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted July 9, 2019 Share Posted July 9, 2019 13 minutes ago, Malfatron said: Yes. What if you dont get an offer that you like? It's a risk, but the recently sold properties on my block this year make it very likely I'd get a good offer, as long as the market doesn't go bad. Quote Link to comment Share on other sites More sharing options...
vike daddy Posted July 9, 2019 Share Posted July 9, 2019 (edited) 22 minutes ago, freak_of_nature said: It's a risk yes it is. sometimes unplanned things happen, an illness or an accident, that could make you not want to sell at this time. if that's the case, what arrangement is there for you re-paying the 15K he has spent out of his own pocket? he's obviously willing to do so because he thinks he'll make more when the house sells, but what happens if it doesn't? how much will you owe him? do you have that in cash in savings to pay him? if you do, then why not do the upgrades yourself, and save $1000 of his fees? Edited July 9, 2019 by vike daddy Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted July 9, 2019 Share Posted July 9, 2019 (edited) 1 hour ago, vike daddy said: yes it is. sometimes unplanned things happen, an illness or an accident, that could make you not want to sell at this time. if that's the case, what arrangement is there for you re-paying the 15K he has spent out of his own pocket? he's obviously willing to do so because he thinks he'll make more when the house sells, but what happens if it doesn't? how much will you owe him? do you have that in cash in savings to pay him? if you do, then why not do the upgrades yourself, and save $1000 of his fees? I couldn't imagine something coming up to make me renege on the agreement to sell the house. I'd really like to unload it, make a nice profit, pay off all my remaining debts, then quit my job and leave the country for 6-12 months. We'd have to go over the paperwork to see the details before I'd sign him on to be my real estate agent. He is with a pretty reputable company though. I'll do a little bit of fixing up between now and next spring, but my small bathroom needs a full remodel, and the front and back decks need to be re-boarded, so I might just re-board the small front deck myself, and let him do the bigger stuff. Edited July 9, 2019 by freak_of_nature Quote Link to comment Share on other sites More sharing options...
theJ Posted July 9, 2019 Share Posted July 9, 2019 19 minutes ago, freak_of_nature said: I couldn't imagine something coming up to make me renege on the agreement to sell the house. I'd really like to unload it, make a nice profit, pay off all my remaining debts, then quit my job and leave the county for 6-12 months. We'd have to go over the paperwork to see the details before I'd sign him on to be my real estate agent. He is with a pretty reputable company though. I'll do a little bit of fixing up between now and next spring, but my small bathroom needs a full remodel, and the front and back decks need to be re-boarded, so I might just re-board the small front deck myself, and let him do the bigger stuff. Unplanned stuff happens. What @vike daddy is trying to ask is, what happens if the unexpected happens and you're on the hook for the 15k? Can you afford it, or will you default and go into collections? 1 Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted July 9, 2019 Share Posted July 9, 2019 19 minutes ago, theJ said: Unplanned stuff happens. What @vike daddy is trying to ask is, what happens if the unexpected happens and you're on the hook for the 15k? Can you afford it, or will you default and go into collections? I could take out a 3-year loan with LendingTree or LendingClub and handle it easily. Quote Link to comment Share on other sites More sharing options...
Shanedorf Posted July 9, 2019 Share Posted July 9, 2019 When people sell homes they will sometimes hire a Staging Company that brings in new furniture, pictures, rugs etc so the house looks perfect and is an easy show for the realtors. Those companies charge $ 5 -10 k and the owner pays that cash in hopes of getting a higher price and or a quicker sale. https://www.realtor.com/advice/sell/how-much-does-home-staging-cost/ It appears that this realtor is doing something similar, not just staging the decor, but doing actual home improvements. Your realtor is just making his job easier and getting paid more for that effort. It doesn't sound like a nefarious plan but I'm not certain how much you are gaining from it vs doing more yourself or hiring a staging company. The other thing to be careful about is that YOU may like the changes, but you don't know if the buyers will - so there is a potential for wasting valuable cash. A bigger deck sure seems like a winner, but painting etc goes both ways - the new owners may prefer a paint allowance so they can choose the colors they like vs what you and the realtor picked out. The other thing about remodeling/improvements is that they often come in over- budget and take longer than initially planned. Who pays the cost over- runs ? What if you miss the prime selling window because the contractor didn't complete the work in time ? Now you're stuck in limbo, paying for the taxes, utilities etc while all of this gets finalized. Does he share the pain ? What if the Realtor turns down a solid no-contingency offer because it doesn't meet HIS goals of the higher price ? There's a potential conflict of interest here and rather than working for you, he is partially working for himself. That's worth looking into. Lots to consider here. Its free to talk to other realtors too, I'd get a couple of professional opinions on the idea of improvements, what they are and how likely they are to boost the sale price by $ 30k . I'd also ask for references from other home owners who have done this sort of deal with him. Are there comparable homes that sold for more based on these specific efforts ? No harm in gathering more info....good luck Quote Link to comment Share on other sites More sharing options...
Tugboat Posted July 10, 2019 Share Posted July 10, 2019 20 hours ago, freak_of_nature said: What if I choose not to sell, or what if the house doesn't sell? I'm selling it next spring, which is why I'm considering this option. My neighborhood is hot. If the neighborhood his that hot, you probably have nice leverage. Multiple interested parties after your abode trying to flip it. Angle that as much as you can tbh. See where that puts your sale price. After all...your house is only worth what the biggest sucker is willing to pay for it. 1 Quote Link to comment Share on other sites More sharing options...
BobbyPhil1781 Posted July 10, 2019 Share Posted July 10, 2019 Staging would be the absolute worst job ever. Moving every single day?............ Nah 1 Quote Link to comment Share on other sites More sharing options...
theJ Posted July 10, 2019 Share Posted July 10, 2019 1 hour ago, JTagg7754 said: Staging would be the absolute worst job ever. Moving every single day?............ Nah The worst part of moving is packing/unpacking. Having worked for a moving company for two years back in my high school days, lifting furniture into and out of a house is not that bad. It's a nice workout. Plus, i'm sure those staging companies use nice, light, slim furniture. Quote Link to comment Share on other sites More sharing options...
skywlker32 Posted July 10, 2019 Share Posted July 10, 2019 2 hours ago, theJ said: The worst part of moving is packing/unpacking. Having worked for a moving company for two years back in my high school days, lifting furniture into and out of a house is not that bad. It's a nice workout. Plus, i'm sure those staging companies use nice, light, slim furniture. This is what I was going to mention. They aren't seeking comfort necessarily with the furniture for staging. They are going for appearances. This allows for lighter furniture and likely smaller, as well (would make the spaces look better along with being easier to move in and out). Quote Link to comment Share on other sites More sharing options...
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