cost of selling a house - Chicagoland Sportbikes
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post #1 of 18 (permalink) Old 01-23-2008, 02:18 PM Thread Starter
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cost of selling a house

can somebody help me out. point me in the right direction.

as some of you know, I am buying out my roommate in a little while. I am trying to come up with an offer, that is fair enough that I would take it if he were to offer it to me. We don't have alot of equity (by percentage) but we do have some. However, I want to take into account the fee's and associated commisions that would have to be paid to sell the house. I have spoken to a member of this board who was VERY helpful and gave me a rough idea on the value of the house.


so here is what I know.

this is a SHIT market, so if I want market value, I have to provide a market worthy house. So at the minimum, my house should have high curb appeal, and a pleasing interior. Any glearing deficiencies need to be fixed before it would go on the market. Since i am not buying him out, I don't have to fix those deficiencies, but it's important to note that it would take time and money to do that.

additionally, if im going to sell it @ market value, I will need to employ the assistance of a real estate agent, which inevitably will take 5% off the top.

here is what I don't know;

what else do I have to provide for? title costs? escrow costs? transfer? title service fee's.

in other words, for those of you who have ever sold a house, can you (by percentage, or actual numbers) tell me what it actually costs to sell a house?

<-- Chris

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post #2 of 18 (permalink) Old 01-23-2008, 02:50 PM
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my bf bought his roommate out of their house. If you really want some insight pm me and I'll ask him the questions.
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post #3 of 18 (permalink) Old 01-23-2008, 03:46 PM
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If you're just buying him out and not moving, why do you need a realtor???

All you need is someone to appraise your house for market value, then hire a lawyer to draw up the papers. It will cost about 5 G's to close on a house.

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post #4 of 18 (permalink) Old 01-23-2008, 03:48 PM
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post #5 of 18 (permalink) Old 01-23-2008, 03:56 PM
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First off...we all know you too well. You would list it on CL or some free service for the first year so throw the 5% BS out the window. No one pays 5% anywho...full service brokers can be had for 4%.
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post #6 of 18 (permalink) Old 01-23-2008, 03:58 PM
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Quote:
Originally Posted by Kruz View Post
First off...we all know you too well. You would list it on CL or some free service for the first year so throw the 5% BS out the window. No one pays 5% anywho...full service brokers can be had for 4%.

"When in doubt, use full throttle. It may not improve your situation, but it will end the suspense."
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post #7 of 18 (permalink) Old 01-23-2008, 03:59 PM
 
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make sure you get a real estate lawyer. Some of these real estate people don't have a clue what they are doing and your screwed out of that 5%.

Make sure you get an inspection by couple people, or have people you know look at the place. Don't go by a single inspection. Also, you have to find out if their are any liens on the property.
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post #8 of 18 (permalink) Old 01-23-2008, 04:00 PM
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I dont follow your logic of these market value "what if" scenarios. Are you trying to give him a pitch of, "Well, if he had to sell we would have to do this, this, and that" to be able to sell?

Get the house appraised (for free) from a few local agents, average that w/out commissions, and divide by two. Discount that number another 5% since he is exiting and leaving you with the questionable asset.
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post #9 of 18 (permalink) Old 01-23-2008, 04:50 PM Thread Starter
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thanks john.

no im not trying to sell it, im just trying to generate an offer to buy out my roommate. so I need to know what it costs to sell it. In other words what does it cost to sell a house?

the only "what if" scenario is, if I were to sell it, how much would I have to give to people, and who, so I take that into account.

Im not trying to get realtors involved at all.

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post #10 of 18 (permalink) Old 01-23-2008, 04:51 PM Thread Starter
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Originally Posted by 87nationalbuick View Post
make sure you get a real estate lawyer. Some of these real estate people don't have a clue what they are doing and your screwed out of that 5%.

Make sure you get an inspection by couple people, or have people you know look at the place. Don't go by a single inspection. Also, you have to find out if their are any liens on the property.
i have a lawyer in the family that will draw up the papers.

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post #11 of 18 (permalink) Old 01-23-2008, 04:52 PM Thread Starter
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Originally Posted by ChicagoFactory View Post
If you're just buying him out and not moving, why do you need a realtor???

All you need is someone to appraise your house for market value, then hire a lawyer to draw up the papers. It will cost about 5 G's to close on a house.
i don't. the 5g's is the information that I needed. But where does that number come from?

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post #12 of 18 (permalink) Old 01-23-2008, 04:55 PM
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really I think your county tax assessor/collector will have all the info you need. What is required to transfer the deed, etc. Regardless of what people tell you, I would check there to be absolutley sure.
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post #13 of 18 (permalink) Old 01-23-2008, 04:55 PM Thread Starter
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Quote:
Originally Posted by Kruz View Post
I dont follow your logic of these market value "what if" scenarios. Are you trying to give him a pitch of, "Well, if he had to sell we would have to do this, this, and that" to be able to sell?

Get the house appraised (for free) from a few local agents, average that w/out commissions, and divide by two. Discount that number another 5% since he is exiting and leaving you with the questionable asset.
so basically, you would just give him half the equity?

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post #14 of 18 (permalink) Old 01-23-2008, 05:16 PM
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Huh? Here's an example...

Let's assume you paid $250k 2 years ago with $25k down and its worth an agreed upon $300k today. So there is ~$75k in equity not accounting for any principal paid off so far to keep things simple and I dont know the terms or your outstanding loan amount. Im also assuming you both equally contributed to the down pmt, mtg pmts, and improvements along the way.

You offer to buy him out for half of agreed upon market value which after the remaining balance of the mortgage should amount to half of the equity in the home or ~$75k.

(300-225)/2

Unless I am missing something, and I might be as its been a long day and Ive been downing Dayquil all day, its pretty simple.
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post #15 of 18 (permalink) Old 01-23-2008, 05:20 PM
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Quote:
Originally Posted by clearwaterms View Post
so basically, you would just give him half the equity?
That would be the fairest thing to do, but he is exititing the partnership so that's where you need to decide how good or bad taking on this property alone is for you.

Some?s to ask yourself in determining what sort of discount to apply//

Is he a close friend?
Did you have an agreed upon time horizon?
Does this cash flow impact other investments of yours with greater rate of return?
What is your outlook on the housing market?
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post #16 of 18 (permalink) Old 01-23-2008, 05:43 PM Thread Starter
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Quote:
Originally Posted by Kruz View Post
Huh? Here's an example...

Let's assume you paid $250k 2 years ago with $25k down and its worth an agreed upon $300k today. So there is ~$75k in equity not accounting for any principal paid off so far to keep things simple and I dont know the terms or your outstanding loan amount. Im also assuming you both equally contributed to the down pmt, mtg pmts, and improvements along the way.

You offer to buy him out for half of agreed upon market value which after the remaining balance of the mortgage should amount to half of the equity in the home or ~$75k.

(300-225)/2

Unless I am missing something, and I might be as its been a long day and Ive been downing Dayquil all day, its pretty simple.

okay, thanks

the only thing I was considering doing was to say (using your numbers)

300-225/2 =75, but if we sold it out right, a real estate agent gets 5% (nice round number) which would be 15K. 75k-15k=60/2 =30k

he wouldn't get 37.5k if we were forced to sell it, so i feel that given the uncertaintly in the market, and the ease of exit for me, making an offer of $30k is a fair offer.

I feel thats fair

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post #17 of 18 (permalink) Old 01-23-2008, 07:06 PM
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post #18 of 18 (permalink) Old 01-24-2008, 11:06 AM
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If you were to actually sell in this market it is likely you would be paying some or all of the buyer's closing costs as well. Odds are those would run 3% to 6% of the buyer's loan amount.
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