Who should I go with? Selling house

iVillage Member
Registered: 05-19-2004
Who should I go with? Selling house
4
Fri, 03-10-2006 - 12:24pm

Hi! I need advice please...

We finally got on the ball and have contacted a few real estate agents. We were pleasantly surprised when they said we should get around $70k for our home! We paid $50K 7 years ago and fixed it up quite a bit. We live in a rural town in PA where all of the houses are squished together with tiny yards so $65-$70K would be great. DH and I want to have $60K in our pockets to pay off exsisting mortgage($45K), suv loan (11,800)and my student loan($2688).

I will post this on the real estate board too but I trust you guys' opinions. Here's the situation:

Real estate agent #1 (Century 21)

My coworker recommended him because he sold her a home. She said he was brutally honest with each house and would say "You don't want this one" or "this one is overpriced" etc... Now this may be great if WE were buying a home from him but I don't know what he will tell people looking at our home even though he told us it was in good shape. He also told my coworker that he doesn't need the money and collects antique cars. Is he really going to push my house? The website hardly has any houses on it and no interior pictures. I actually called to look at a home before we decided to build and wouldn't show it to us because the renters didn't want anyone to see it!
He walked through our home in 5 minutes and I didn't get a good vibe from him. The good thing was the commission. He gave us a flat fee of $3000. The usual rate is 7%.

Real estate agent #2 (well known local agency)

Went to high school with this woman, I felt very comfortable with her. SHe looked all around the house and asked me questions. They have a great website with interior pictures and many homes on there that sell pretty fast. THe commision is normally 7% ~ she said her boss usually goes down to 6%. I feel that she would really push our home. It would probably cost us between $700-$1300 more with this agency (depending on the sellling price) but as long as our house doesn't sell for less than $64K we would be able to pay off our loans.

We want to sell it fairly quick while our new home is in the works because we can't afford 2 mortgages and we would stay with my parents and could save over $2k/month for things for the new home.

So do we spend more to have the agent we feel more comfortable with but higher commision and hope we get at least $64K and would be better promoted---- or go with the cheaper commision ($3K)and hope he actually pushes the house for at least $63K?

I'm out of breath!!! Nicki

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 03-10-2006 - 1:03pm

I would go with #2 and try to negotiate down to 5%.

All my best,
Danni

iVillage Member
Registered: 01-25-2006
Fri, 03-10-2006 - 2:02pm

I have heard rumblings that RE agent percentages were starting to rise. I was wondering if you are already under contract for the new house? If not and you still can, see if she can represent you on that sale and then see if she will drop her rate because she is going to get both 'ends' of the deal.

I still would go with #2 or take Danni's suggestion and take a look at a third or fourth agent. I really believe you have to go with your gut on these things and if your gut says, #2, go for it. Also, don't assume you guys are going to have to come down 10%+ on the sale price. This varies by market but I wouldn't be too quick to give in that much. Another thing is you could easily make up the difference in commission with either a better sale price &/or a quicker sale that allows that money saving move to your parent's house sooner. Also, don't know what all you are counting in your expenses but I seem to remember there being expenses beyond the real estate commission that the seller pays so if you are dead set on taking home x amount, you should make sure you totally understand it all. This is one of the reasons it's really important that you trust your RE agent knows what the heck they are doing. Ugly surprises on closing week are not fun (ask me how I know??).

The one thing I'll say in defense of #1 is that at least where I live, it is very unusual for the listing agent to also be the selling agent but regardless, the listing agent is required to act in your interest even if they are also the selling agent so badmouthing or pointing out issues with your home would not be appropriate.

Good luck and hope it sells quick!

Peg

iVillage Member
Registered: 03-27-2003
Sat, 03-11-2006 - 3:31pm

Oh, definitely #2! We sold a house in Iowa, and wasted six months with an agent who didn't do squat. Then we switched agents and sold within the month. We paid a higher commission (yes, even seven years ago, 7% was not unheard of there, which is what we paid), but it was worth EVERY penny. Especially considering all the money we wasted paying a mortgage we didn't want anymore while waiting on the no-good agent.

I think 6% sounds fair for an agent who will do a good job. Of course, it never hurts to interview agents #3 & 4, as Danni suggested.

Good luck!

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Sat, 03-11-2006 - 7:52pm

Hello,

My advice would be to go with #2. If you are paying a flat fee to an agent, what incentive does he have to sell your house for more? An agency that charges a commission makes more money when they sell your house for a larger amount. They are "hungrier" and more motivated since their income depends on the sale price.

Sincerely,
Lindsey Schocke

Sincerely,
Lindsey Schocke

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