Any Disboards Realtors out there?

[clh2]

This is the situation:

My 87 year old dad is going to be selling his house. One sister has deemed herself in charge. My parents have been in a resort/touristy area, so selling in the summer is ideal. My dad has already been talking to a realtor, who has suggested, the house should be “on the market” by end of June/beginning of July, and probably won’t be sold until early September. Realtor also feels it is normal for sellers to remain in house until the winter/end of the year.

My dad has am appointment with the #1 realtor in this area on Thursday. This particular appointment is to have her come through and give suggestions on exactly what needs to be done prior to getting the photos taken and then listed. (Realtor has already seen the house, and at that time, her suggestion was to declutter, declutter, declutter.). But, now that it has been declutterred, we need suggestions on how to show it. My sister is livid about this, probably because it was my idea.

Yesterday, she was in a tennis-drill class with someone who wants to buy a home in the resort/touristy area, But her and her husband cannot find anything. Seems like everything gets sold before things get listed. This couple is leaving today for a 2.5 week vacation to Europe. The earliest they can see the house would be June 26 or 27th. They do not want my dad to list with a realtor before then. My sister, always looks at things with dollar signs, so, she is seeing the realtor commission savings. These potential buyers did not blink at the price range, or any issues my sister told them, and would be a cash buyer.

Sister explained the potential buyers to my dad. My dad still wants to have the realtor come on Thursday. In all fairness to the realtor, should this situation be explained? I even suggested to my sister, that this potential buyer situation be discussed/disclosed with the realtor. It seems logical, that there is some sort of agreement that could be reached with the realtor, for assistance in this transaction, but perhaps a lessor commission, if these buyers buy the house, as the realtor did not find the house.

Not to confuse anything…the day that these people could see the house, I have 2.5 days I am taking off for medical stuff, that week. I cannot take off additional time from work. My sister is also not able to be there. Dad lives 2.5 hours away, so it is basically a full day to go up there for anything.). My husband is not opposed to going up, but again, the day trips up there are adding up. I am vehemently opposed to my dad showing these people the house, if no one else is there. Not that I don’t trust the people that my sister knows, but due to my mom passing away recently, I feel my dad is getting overwhelmed easily. Plus, the potential buyer husband is a attorney. I would feel better if this appointment happened with someone else there. Plus, I don’t think my dad would be a “hey, let me show you the cool stuff about this house” kind of guy. AND, it is somewhat a violation of personal space when people are taking a look at your closets etc.

Any thoughts on benefits of my dad still having a realtor representing him? Even though, we are the ones that might have found the buyer? I would still need to go up against my sister (no worries, been doing this my whole life). She thinks it is just ok to have my dad work with an attorney once he has an offer.

 

[Darcy03231]

My parents sold their home with no realtor involved and showed it themselves. I don't see any downside to putting the appointment with the realtor off until the potential buyers can see it. I would make sure your dad has someone else there with him though.

I also live in a touristy/resort area and it doesn't matter when you put a house on the market - - it sells in hours to days as long as it's been priced for the market. It sounds off to me that the realtor thinks it's going to take 2+ months to sell a home in an area where the potential buyers are saying there's "no inventory." Everything in my area is going in less than a week and, in most cases, $50k to $250k over asking price, and for cash!

 

[lanejudy]

My dad still wants to have the realtor come on Thursday.

I'm not a realtor, but this comment sticks out from your post. You made no mention of any concern about dad's ability to understand what's going on. Dad started the process to find a realtor and wants to go ahead with the realtor he has chosen -- I say let him do that. He can mention your sister's acquaintance may be interested, but other than that if he decides to list with the realtor no member of the family should "show" the home to anybody; the potential buyer should be given the realtor's contact info to arrange a showing. Let your father manage the sale with the professional of his choice. It sounds like he has a good grasp on what's happening and how he wants to proceed.

 

[_19disnA]

Am not a realtor either, but I know that once you sign up to work with a realtor, you can't also go about showing the house on your own in an attempt to avoid paying the commission. I think there are some other recent threads regarding selling a house on your own you might want to look for.

Resort/touristy areas often have a wide range of properties and some have been better maintained then others. Difficult to generalize on how fast something will sell. Mostly depends on the asking price/general condition and if it is what buyers are looking for. People only see the $$$ they will supposedly save by selling without a realtor but there are a number of legal documents/title search/etc. that realtors coordinate and part of what you are paying for. I doubt you/your sister or dad have any experience in those areas. Likely you also don't want random strangers coming to your elderly dad's house expecting him to show the place.

 

[dvcgirl67]

What would the commission be on the house? What percentage?

I think that a lot can happen to derail your sister's friends from buying the house. And often for a pocket listing they'll be expecting a deal. I personally would want multiple offers if the market is hot. I live in NJ and houses are selling very fast again....with multiple offers. I say....let the market do its thing.

 

[barkley]

What would the commission be on the house? What percentage?

I think that a lot can happen to derail your sister's friends from buying the house. And often for a pocket listing they'll be expecting a deal. I personally would want multiple offers if the market is hot. I live in NJ and houses are selling very fast again....with multiple offers. I say....let the market do its thing.

this. a realtor can market to buyers who may be willing to pay MUCH more than the friends of the sister have in mind. we don't live in a resort area but almost all buyers come from out of the area b/c it has a vacation get-away vibe, and those out of area buyers are paying stupider and stupider amounts (with fewer conditions on the part of the seller-as is, no inspections...). a realtor (or real estate attorney) also comes with some legal protections for the seller and ensures the buyer is on the up and up (is sister going to verify funds for a cash sale?). disclosure is a massive deal in some states, fail/innocently forget/misspeak something seemingly minor and the buyer can come back after the seller-in my neck of the woods i know of 2 homes where it was 5 figures refunded to buyers but in one case the entire transaction was reversed over 2 years after the sale (the folks with realtors had some recourse to get them to eat part of the costs, the ones without were left with 100% out of pocket).

 

[Sanchez]

You do not say what state (or at least enough to determine whether the state requires attorneys to handle closings.) If your dad wishes, I would recommend the following:

1. Allow the realtor to visit and present a plan as scheduled;
2. If he decides to retain the realtor (assuming he is competent) then negotiate the following: a) something less than the 6% "standard" commission; and b) an exclusion for your sister's friends. That is, any negotiations with these people are not within the realtor's scope of representation and no commission is paid;
3. If your sister's friends do wish to present a contract hire a lawyer to prepare/negotiate the contract. Lawyer fees will pale in comparison to real estate commissions and you will have a trained and qualified person representing you - as opposed to real estate agents who are barely trained and not qualified (or even permitted in many states) to draft and negotiate contracts;
4. There is no need to wait to list the home before these folks return from Europe. Start the listing process immediately and if something does work out with them you have a built in exemption from commissions.

 

[tvguy]

To me a Realtor is worth is more for all the legal hoops that have to be jumped through to complete a sale. Way way way too much money to risk having a mistake.
My daughter is about to sell her house and we were with her today when she met with a Realtor. The whole commission structure is supposed to be changing in August. But some feel that may not happen. But the Realtor today was more than willing to negotiate the commission.

 

[Darcy03231]

If it's a hot market, I would also do a bit of research to see what homes that are similar to your dad's are selling for.

I did that when we sold our home 10 years ago in a not so great market. Realtor told us to list between $330,000 - $345,000 and recommended we list at $330,000 for a quick sale. I'd been watching the area for 2 years and wanted to list at $380,000. We weren't in a rush to sell and from my research similar houses in similar condition were going from $350,000 to $390,000. She didn't want to list it for $380,000 and we ended up using another realtor. House sold in less than 48 hours for $370,000.

Realtor's commission at that time was 5% so the difference for the first realtor would have been $2000, but a $38,000 difference for us.

 

[china mom]

I am not a realtor but have bought and sold several times. I have sold a house by myself on Facebook for cash and I have used realtor for all of my other transactions.

I can say that in your father's situation, I would a) not wait on the buyer's schedule but if it is going to take that long to make the house ready for market, they it works out. b) I would plan on using a realtor but pre-negotiate and favorable fee based on you supplying the buyer. I believe that the experience that a realtor brings tot he table is important. They coordinate deadlines and make sure that the buyer is qualified. They make sure that the title company does not make any mistakes.

I just signed with a realtor to sell at the end of the month (5% commission) and I will be showing the house myself next week to someone who approached me (I am sure she is a tire kicker, though). If she wants to make an offer, I will hand her over to my realtor as I am under contract and legally obligated to do. But if this had all happened last week prior to me signing, I would still pay my realtor (probably offer him 2.5%) to handle the transaction.

 

[cabanafrau]

If it's a hot market, I would also do a bit of research to see what homes that are similar to your dad's are selling for.

I did that when we sold our home 10 years ago in a not so great market. Realtor told us to list between $330,000 - $345,000 and recommended we list at $330,000 for a quick sale. I'd been watching the area for 2 years and wanted to list at $380,000. We weren't in a rush to sell and from my research similar houses in similar condition were going from $350,000 to $390,000. She didn't want to list it for $380,000 and we ended up using another realtor. House sold in less than 48 hours for $370,000.

Realtor's commission at that time was 5% so the difference for the first realtor would have been $2000, but a $38,000 difference for us.

Sometimes realtors do suggest listing low as a strategy to draw in multiple offers to set up a bidding war, driving up the price. Ten years ago in a not so great market was probably quite different on that front.

As far as OP's circumstances, the most I would do is suggest dad consider the possibility of requesting an exclusion for these particular buyers if he chooses to sign with the realtor, leaving open the possibility they will choose to make an offer. If dad lists with the realtor with no carve out for these buyers they aren't precluded from making an offer in the normal course of business anyways, which they may well do if the market is so hot and they've been unable to secure another property in the market.

 

[focusondisney]

Sometimes realtors do suggest listing low as a strategy to draw in multiple offers to set up a bidding war, driving up the price. Ten years ago in a not so great market was probably quite different on that front.

This is exactly why is happening in my area right now. My sister has been looking to buy a home for about 3 months. She started out looking at homes that were about 20- 30K less than her max. Those homes all sold for over her max price. She’s now looking at homes 50-60K less than her max. She has been outbid on at least 8 houses. Every single house she’s looked at has been listed low & sold for 15-20K over asking & had 5 or more offers. It’s crazy & she’s getting very discouraged. It’s very hard to even know what the market prices are or what she should offer when the listing price is so much lower than selling price.

 

[mjkacmom]

This is exactly why is happening in my area right now. My sister has been looking to buy a home for about 3 months. She started out looking at homes that were about 20- 30K less than her max. Those homes all sold for over her max price. She’s now looking at homes 50-60K less than her max. She has been outbid on at least 8 houses. Every single house she’s looked at has been listed low & sold for 15-20K over asking & had 5 or more offers. It’s crazy & she’s getting very discouraged. It’s very hard to even know what the market prices are or what she should offer when the listing price is so much lower than selling price.

A house a block away just sold for $200,000 OVER the listed price. Realtors don’t have inventory.

 

[leebee]

Real estate is a crazy-hot market right now. I'd want to list with a realtor, get a bunch of showings, and let the potential buyers get into a bidding war. It happens all the time around here, and we live in a sleepy little college town in northern Maine. Your dad's home is in a touristy area that will attract multiple offers. If your sister really sees things with dollar signs in her eyes, the concept of a bidding war should get her on board.

Also... there is no way I'd get into a real estate transaction without representation, either by signing with a realtor or with a lawyer. We've bought/sold several homes, and there are so many things I wouldn't have considered without the help of a realtor. Comps, conditions, inspections, title searches... I'm sure there is more. I cannot comprehend going into what will be the largest financial transaction of my life without someone trained and knowledgable to guid the whole thing, to make sure the "ts" are crossed and the "is" are dotted. I wouldn't want to risk doing something wrong and losing it all.

 

[cabanafrau]

A house a block away just sold for $200,000 OVER the listed price. Realtors don’t have inventory.

Will be interesting to see if the deal closes. I know someone in the mortgage industry who has been watching this phenomenon all over the country for the past few years and a large percentage of these deals collapse if the buyers cannot bring a significant amount of the premium over asking price to the table in cash because the houses are not appraising for the ginned up prices. Appraisals aren't flying up the flagpole at quite the speed of many of the prices on the purchase agreements and lenders are requiring the buyers to cough up the premiums.

 

[clh2]

OP here with todays update:

My DH and I went to see my dad, abpnd we had the appointment with the realtor.

The realtor can do a special contract with my dad, that allows her to represent my dad, while they look at the house and decide if they want to buy it. She offers this service for a 2% fee. THIS WOULD BE AWESOME! MY DAD IS ON BOARD TOO.

I think it would be very difficult for my dad to show his house. Loosing my mom about 2 months ago has been difficult. He does not need the stress of dealing with potential buyers and navigating the paperwork that needs to be completed on his own.

I let my sister know what happened. She hit the roof. Her friends are not interested in having realtors involved at all. Her friends feel they will be paying more for a house due to the realtor being involved.

It would be difficult for me to be at a house showing due to a project going on at work. Apparently my sister is not able to be there either due to her work commitments.

I better strap in…this is going to be a bumpy ride.

 

[barkley]

I let my sister know what happened. She hit the roof. Her friends are not interested in having realtors involved at all. Her friends feel they will be paying more for a house due to the realtor being involved.

then her 'friends' were looking to low-ball your dad and make it appear it was a good deal b/c he was saving the realtor fees encourage your dad to sign on with the realtor if he's not yet done so, selling a home in the best of emotional circumstances is difficult and taxing, doing it following the loss of a spouse does not need to be made more so.

 

[flyingdumbo127]

Just a hug and prayer, Clh2. You and your dad are blessed to have each other. I wish you and all of your family the best.

 

[cabanafrau]

OP here with todays updat:

My DH and I went to see my dad, abpnd we had the appointment with the realtor.

The realtor can do a special contract with my dad, that allows her to represent my dad, while they look at the house and decide if they want to buy it. She offers this service for a 2% fee. THIS WOULD BE AWESOME! MY DAD IS ON BOARD TOO.

I think it would be very difficult for my dad to show his house. Loosing my mom about 2 months ago has been difficult. He does not need the stress of dealing with potential buyers and navigating the paperwork that needs to be completed on his own.

I let my sister know what happened. She hit the roof. Her friends are not interested in having realtors involved at all. Her friends feel they will be paying more for a house due to the realtor being involved.

It would be difficult for me to be at a house showing due to a project going on at work. Apparently my sister is not able to be there either due to her work commitments.

I better strap in…this is going to be a bumpy ride.

then her 'friends' were looking to low-ball your dad and make it appear it was a good deal b/c he was saving the realtor fees encourage your dad to sign on with the realtor if he's not yet done so, selling a home in the best of emotional circumstances is difficult and taxing, doing it following the loss of a spouse does not need to be made more so.

Your sister's friends are very likely heavy real estate investors, which your sister may not even know. I know and know of several attorneys who are heavily involved in real estate. It's not uncommon for their real estate holdings to actually dwarf their very busy and very lucrative law practices for revenue brought in.

Barkley is on the money, they want a pocket listing deal in order to run the table from all angles to their benefit. No matter what, approach any deal with them with extreme caution. Many attorneys who are real estate investors use their legal skills in very creative ways in their transactions, very creative ways. Recent real estate market conditions have been tilted to sellers' advantage and they have enough info on your family circumstances to use it to try to manipulate the situation all they can. Be vigilant.

 

[Genie+]

OP here with todays updat:

My DH and I went to see my dad, abpnd we had the appointment with the realtor.

The realtor can do a special contract with my dad, that allows her to represent my dad, while they look at the house and decide if they want to buy it. She offers this service for a 2% fee. THIS WOULD BE AWESOME! MY DAD IS ON BOARD TOO.

I think it would be very difficult for my dad to show his house. Loosing my mom about 2 months ago has been difficult. He does not need the stress of dealing with potential buyers and navigating the paperwork that needs to be completed on his own.

I let my sister know what happened. She hit the roof. Her friends are not interested in having realtors involved at all. Her friends feel they will be paying more for a house due to the realtor being involved.

It would be difficult for me to be at a house showing due to a project going on at work. Apparently my sister is not able to be there either due to her work commitments.

I better strap in…this is going to be a bumpy ride.

Let sis and potential buyers hit the roof. If anything that’s confirmation the realtor is needed.