Selling house to buy another house.

[mimico_polak]

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They also vet potential clients and offers so you get less idiots parading through your house that have no intention of ever buying or could afford it ever, there is value in them for me. My time is worth something (to me)

this right here is the answer. You get lots of idiots, and you need to spend a lot of time.

In the end how much is your time worth.

On an average 650k home:

2% comm - $13,000
3% comm - $19,500
4% comm - $26,000
5% comm - $32,500

For me...I've never found $13k lying around freely so it's worth a shot in my opinion. Once/If I want to sell my house, I'll try selling it first on my own because I don't feel an agent adds that much value. Unfortunately my cousin just became one and she wants to be my agent for everything...very annoying so far...it'll be an uncomfortable discussion once the time comes! LoL

 

[mmmnaked]

Be advised that when you're selling your property privately, people expect the savings to be passed onto them... you won't get as much money for the house. In the end its probably a wash. Also, expect a TON of realtors to be calling you... that's what happened to me when I attempted it (unsuccessfully) some years ago.

 

[crankcall]

Be advised that when you're selling your property privately, people expect the savings to be passed onto them... you won't get as much money for the house. In the end its probably a wash. Also, expect a TON of realtors to be calling you... that's what happened to me when I attempted it (unsuccessfully) some years ago.

I've been asked about a discount when I've been my own agent, my polite answer was I'm doing all the work so no. There is still negotiation but that parts off the table. Tons of realtors will call and express they have qualified buyers, I'm not allergic to a finders fee, its business and they can act as a buyers agent for the client but I wont be giving them a listing up front.
Our best was finding a letter in the mailbox from a guy that liked my house in the country near Campbellville, letter on friday, coffee and offer on Saturday, closed in 90 days no agents.
We sold a condo in Burlington in 45 mins, told the super it was going up on market, he called a lady that lived in the building, she came up 4 floors and made a cash offer.

It hasn't always gone that well............. I bought a short sale in the US, it took 9 months to clear.

My other advice never assume any body at the Bank can do basic arithmetic, the mortgage specialist is usually about as qualified as a hairdresser. Check all totals, printed interest rates, principal amounts and dates.
I needed a quick 250k secured line of credit, took TD three tries to get the paperwork right. When we went to close on one property we had arranged a 10k over on the mortgage for some quick stuff, got a call from the lawyer on friday at 4pm closing day the mortage transfer was $3,200 short and he needed a certified cheque in 30 mins. Bankers.......

 

[Gary]

I have no problems paying my broker 1.75%. Water off a ducks back.
He doesn't do open houses though. Never been an issue.

 

[Red_Liner740]

Mortguage and that side of paperwork is not an issue. Fiancees friend is a mortguage broker and both times we shopped for mortgages she not only blew competitipn away interest wise but went to bat to clean up some credit rating stuff for us. Im sure shes gonna take care of us again.

Id love to do agent free selling, but that requires time and being there. I travel for work. So thats difficult. If a realtor is good and willing to work on fees due to buying and selling i dont mind paying.

 

[01cbr]

We made a deal with the agent that he would sell our house for 3% and then we would commit to buy the house through him so he would make up the % he is giving up now.

Don't trust most agents. They are scum bags. Can't wait for the real estate market to crash I will LOL on their face when their lives start to fail.

When I read a post about someone who bought a house but also cant wait for a real estate market crash I LOL.
Is 3% for a selling agent supposed to be a deal?

 

[ZX600]

Ive been traveling all day (still travelling) so i dont have the patience to write out a long response, but thanks for the contributions. This is exactly what i was looking for.

We are starting to look first. We can theoretically carry both mortgages for a prolonged period i just dont know how that works from a financing standpoint, nor how quickly this whole thing will empty the war chest.

Be specific in what you mean by "We can theoretically carry both mortgages".

You might be able to pay the monthly payments of both mortgages, the problem is that the bank won't give you a second mortgage until you have a closing date for the house you are selling. So unless you are able to pay one mortgage and have the money in the bank to pay the second house out front (doubt many people can) I would be really careful.

Hope I made sense.

 

[ZX600]

Everyone is entitled to their opinion but...

Mine spent countless hours visiting houses with us when she didn't even know she was going to get any commission
Was able to negotiate and sell us as the best candidates when there was a bidding war with 7 other people
Got her contractor to install our kitchen backslash (out of her commission)
Install all kinds of chandeliers and fixtures (out of her commission)
She filled with furniture and staged a 3500 SQ home (out of her commission) We had only moved there 2 years ago and had all rooms we didn't use empty.
Did all the paperwork (of course)
Sent a professional photographer to take pictures of our home (out of her commission)
..and most importantly guided us through a very stressful process.

I was happy to hand out the check for her commission as I know if i would have gone at it alone, i would not have found the home i now live at and would have never got the price I got for the house I sold.

Guess I'm part of those 10% then.

Bought and sold 3 houses and 2 parcels of land with virtually no real estate involvement in the last 10 years.


Some of us don't need to pay silly inflated commissions to an agent who simply fills out paperwork in their underwear in front of a computer, thanks....

 

[raginduck]

Be specific in what you mean by "We can theoretically carry both mortgages".

You might be able to pay the monthly payments of both mortgages, the problem is that the bank won't give you a second mortgage until you have a closing date for the house you are selling. So unless you are able to pay one mortgage and have the money in the bank to pay the second house out front (doubt many people can) I would be really careful.

Hope I made sense.

If someone qualifies for the combined amount of both mortgages... then why wouldn't the banks give you the second mortgage?

 

[ZX600]

If someone qualifies for the amounts of both mortgages... then why wouldn't the banks give you the second mortgage?

Very few people are able to qualify for both mortgages. Banks calculate income, expenses, debt and from all these calculations come the magic number of money the bank will be willing to lend.

Judging by the average prices of homes these days I doubt many people would be approved.

Reason I am warning him is because I thought that bridge financing would allow me to buy the second house before I was able to sell mine and was surprised to find out that there is no bridge until i had a closing date for my house. Thankfully I didn't needed.

Bridge is only to cover a period of time between the closing of the home you bought when it closes prior to the one you sold.

 

[raginduck]

Very few people are able to qualify for both mortgages. Banks calculate income, expenses, debt and from all these calculations come the magic number of money the bank will be willing to lend.

Judging by the average prices of homes these days I doubt many people would be approved.

Reason I am warning him is because I thought that bridge financing would allow me to buy the second house before I was able to sell mine and was surprised to find out that there is no bridge until i had a closing date for my house.

Bridge is only to cover a period of time between the closing of the home you bought when it closes prior to the one you sold.

I understand how it works... I am pointing out that it all depends on individual circumstances.

 

[inreb]

I'm still trying to come to grips with the FACT that a house will fetch more or sell easier if empty rooms are filled with furniture. Are buyers that fickle?

 

[ZX600]

I'm still trying to come to grips with the FACT that a house will fetch more or sell easier if empty rooms are filled with furniture. Are buyers that fickle?

Why do you think model homes are fully furnished? people like to imagine themselves on teh house they are potentially buying and an empty house doesn't give them the warm feeling.

Don't ask me, what do I know.

 

[LiNK666]

When I read a post about someone who bought a house but also cant wait for a real estate market crash I LOL.
Is 3% for a selling agent supposed to be a deal?

No rush to sell the house. Probably will have it re-appreciate it to more. Houses are 35% over priced.

3% is better than 5%.

 

[inreb]

Why do you think model homes are fully furnished? people like to imagine themselves on teh house they are potentially buying and an empty house doesn't give them the warm feeling.

Don't ask me, what do I know.

I'm not arguing with the results, I just find the lack of imagination odd. Like, if I was going to buy a motorcycle repair shop it wouldn't help or hurt if it was shown with or without lift tables, work benches and coffee machine. I mean, standard visualization techniques would suffice.

 

[SunnY S]

3% is better than 5%.

0% is even better. I'd rather pay myself....

The problem w agents, from my experience is that they are 'all' lazy.

They all want your listing real bad, cause it looks good when an agent has all kinds of listings and seems really popular.

In reality, the more listings they have, the better chance they have of sitting back and putting their feet up and waiting for other agents to bring the clients in, do all the 'heavy lifting' and then split the commision when the listing agent did dick all. Scru dat.

Here's my most recent experience, we have a 3 unit commercial building for lease, we listed it with one agent for 6 months, then tried another agent for 6 months. Nothing!

When his listing expired last month, I put it on kijiji and BOOM, had an instant tenant within a week.

To top it all off, I got more in rent from the kijiji ad, then I would have gotten from the agent.

 

[LiNK666]

We are looking for commercial property to lease. Got anything in Guelph, london, barrie?

0% is even better. I'd rather pay myself....

The problem w agents, from my experience is that they are 'all' lazy.

They all want your listing real bad, cause it looks good when an agent has all kinds of listings and seems really popular.

In reality, the more listings they have, the better chance they have of sitting back and putting their feet up and waiting for other agents to bring the clients in, do all the 'heavy lifting' and then split the commision when the listing agent did dick all. Scru dat.

Here's my most recent experience, we have a 3 unit commercial building for lease, we listed it with one agent for 6 months, then tried another agent for 6 months. Nothing!

When his listing expired last month, I put it on kijiji and BOOM, had an instant tenant within a week.

To top it all off, I got more in rent from the kijiji ad, then I would have gotten from the agent.

 

[01cbr]

No rush to sell the house. Probably will have it re-appreciate it to more. Houses are 35% over priced.

3% is better than 5%.

5% is total commission. If your writing up a contract with an agent to double end the deal right off the bat your getting screwed.
Where did you come up with 35% over priced? So you over paid for a house, hope for the value to plummet, then you figure it will raise again to be even more over priced?

There is a pretty clear connection between interest rates and housing prices. When interest rates rise its going to be those with mortgages who suffer. Real estate agents will either get by....or just sell you something else.

 

[crankcall]

I'm still trying to come to grips with the FACT that a house will fetch more or sell easier if empty rooms are filled with furniture. Are buyers that fickle?

Never under estimate the inability of otherwise clever people to be incapable of visualizing an end result. Its astounding how many focus on furniture ( that may be leaving) appliances (that may be leaving) and paint colors. Is there anything cheaper than a bucket of paint? And yet windows, roofing , insulation and electrical panel capacity will be almost overlooked.
Then they will commission a home inspector to sort the "hard stuff", and get an excellent report with features like main water shutoff, could not locate......

 

[LiNK666]

http://www.cbc.ca/news/business/imf-warns-on-house-prices-in-canada-and-elsewhere-1.2673122 just going off by what I read on the news.

I'm not hoping for the value to plummet. I'm sure it's going to be adjusted. Not by 35% for sure. Over time the value will increase again.

Yes, it is tide to interest rates and people believe they can afford such ridiculous payments. So many people bought with 5% down and taking CMHC. Real estate agents coxing them into it. Telling them fairy tales of how those houses are going to double and triple in value so they can retire etc... I hate agents... ****ing scum bags. Commercial agents are even worst.

5% is total commission. If your writing up a contract with an agent to double end the deal right off the bat your getting screwed.
Where did you come up with 35% over priced? So you over paid for a house, hope for the value to plummet, then you figure it will raise again to be even more over priced?

There is a pretty clear connection between interest rates and housing prices. When interest rates rise its going to be those with mortgages who suffer. Real estate agents will either get by....or just sell you something else.

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