Any Disboards Realtors out there?

[Miffy]

OP, Putting the house up for sale, selling it, and moving are going to be stressful no matter what the situation is.

If your father (and your family) decide to go through with this potential private sale, your father (since it's his house) might be leaving tens of thousands of dollars on the table, not just a couple of thousand.

From what I gather from reading this thread, his house is in a resort community that's highly desirable and has very low inventory. He'd actually be a fool to sell it at whatever price in a private sale to someone who's not his close friend or a family member.

Of course, perhaps your father is so wealthy otherwise that money is not all that important to him. If that's the case, then ignore what I just said. If not, it's in your father's best interests to get the best price he can for his home, even if that would mean going through the process of listing it and getting it ready to be shown and then showing it. Those are things that someone else can do for him. And by "someone else" I do not mean you and your family. There are professionals who can stage a house to get ready to sell. It's worth the expense, particularly since his home is in a desirable an area.

You don't want your father to look back on this and be regretful that he just accepted the first offer he got, without even testing what the market is.

 

[focusondisney]

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.

So the “friends” want to buy a house in the area, can’t find a single home because they all sell so fast but would balk at buying one with a realtor?? I guess they don’t really want to buy a house in that area all that much after all. I hope your sister isn’t in a position to influence or pressure your dad. It definitely sounds like your dad will do better with the realtor. If the area is that desirable, there’s no telling what he could get on the free market. Hugs, coz I think you’re gonna need them.

As for your sister, maybe suggest discussing a reduced commission with the realtor since you found the buyer. Realtors might be open to that.

The OP has already done that. The update says the realtor will do a contract for 2% to represent the dad if the friends buy the home. Highly doubt they can get anything lower than that.

 

[lanejudy]

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.

That sounds like a giant red flag! It would seem these folks don't want your father to have professional representation at all which (as others suggest) hints at they want to undercut the deal, possibly argue reductions for updates/repairs, skipping steps, and worse possibly coming back at him post-sale, etc. Your father has the right to be represented by a realtor and/or a lawyer who has his best interests at heart, follows the recommended processes, dots all the I's and crosses all the T's on any agreements. He is paying for that and it shouldn't impact the buyers in the least.

 

[Genie+]

Years ago I found out about a shady deal. It was within DH’s large friend group. i was young and didn’t really know everybody yet so didn’t pay it much mind but it has always stuck with me. Basically what happened was a marriage, infidelity, divorce and the house getting sold. Another couple in the group just married, had a kid and were looking for a house in that town. This big group is all connected through several large families and who’s sister is married to whose brother, etc. Well enough of them decided that since the wife cheated, it was ok for new couple and the house selling ex-husband to make a deal that at the ex-wife’s expense. They made it like the house was worth $400k and convinced ex-wife it was best no realtor fees, the house was really a fair value at $500k, so the new buyers split that by giving ex-husband $50k on the side. House sold. One got $200k and the other $250k.

I’ve seen enough other things in my life to be wary Even when it comes to family, friends or ‘pillars’ of a community. Going through the proper channels protects everybody. If this party is as interested in this particular sale as they claim, a 2% realtor fee is extremely reasonable for the situation. Really it is better for all interests involved.

 

[MICKIMINI]

Those "buyers" are looking to get the house as cheap as possible from a vulnerable, elderly man. Goodness, do not try this alone.

Paying a fee to the realtor for showing the house and negotiating price and details is well worth it. If they are indeed cash buyers, the best deal will be no inspection and a quick closing date. The fact that the buyers think they will be "paying more" with an agent is ridiculous. If they want the house they will buy it, period.

Good luck!

 

[The Mayor]

Bidding wars reap more money than savings from realtor commissions!! Even with the higher interest rates three houses in my neighborhood have gone well over asking price because of multiple offers. One house was a 960 sq/ft ranch that need A LOT of work, and went for $85K over asking!! (They were asking $400K and got $485K).

Dangle that carrot in front of your sisters nose and see how she reacts.

 

[clh2]

Thank you everyone for your feedback.

I tried to get together with my dad and sister tonight to discuss, when my dad is in town this weekend, but she declined.

My only thought is…any buyer will make an offer to purchase based on what the value of the house is to them. Conversely, my dad will be able to decide on accepting an offer on what makes sense for him.

So, hopefully my sister’s friends aren’t going to lowball, if they even decide to see the house. My sister has indicated they are finding out about houses after they are under contract. So, that confirms to me that they are trying to find a hidden gem, that they can swoop up at great deal for them. They do not want to use a realtor, and in my opinion, that ultimately is the problem as to why they can’t find a house.

 

[HopperFan]

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.

Given her friend is an attorney this screams red flags that they plan to lowball your Dad and be in control of the contract and odds are your Dad will get the short straw.

I think his realtor was very generous in the offer to work with these people, and she probably is confident there will be several offers coming in and that is win-win for your Dad.

If these folks can afford a vacation town home with pure cash there is no reason why they haven't bought one. Sounds more like they are trying to get a bargain and your Dad is a good target.

If you can't be there, your Dad needs the realtor to represent him. I would clue her in to your concerns with your sister so she can stay on top of everything.

 

[ronandannette]

Thank you everyone for your feedback.

I tried to get together with my dad and sister tonight to discuss, when my dad is in town this weekend, but she declined.

My only thought is…any buyer will make an offer to purchase based on what the value of the house is to them. Conversely, my dad will be able to decide on accepting an offer on what makes sense for him.

So, hopefully my sister’s friends aren’t going to lowball, if they even decide to see the house. My sister has indicated they are finding out about houses after they are under contract. So, that confirms to me that they are trying to find a hidden gem, that they can swoop up at great deal for them. They do not want to use a realtor, and in my opinion, that ultimately is the problem as to why they can’t find a house.

Yes, well, if these lawyer/buyers were willing to use a buyer's representative (realtor), they would have advance access to market information, and could then compete for properties fairly like everyone else. Buyers being represented by their own realtors also makes sense for a lot of reasons.

 

[clh2]

Another update:

I was up helping do stuff at my dad’s house, yesterday. It came up in a conversation that my sister’s friends will be seeing my dad’s house on Friday. I asked if my sister was going to be the one showing the house, and dad said yes. I once again expressed my concern that the potential buyers were going to take advantage of this situation. I also said that if my dad signs an offer, he would not be able to negotiate anything. And to make sure he has an attorney available to review the offer (keeping in mind that he is bumping up against July 4th week). I stressed that realtors know market conditions, not the attorneys. Attorneys will only negotiate terms and conditions, not pricing, and I’m not so sure they can negotiate concessions.

I am beyond ticked off with my sister.

 

[barkley]

Another update:

I was up helping do stuff at my dad’s house, yesterday. It came up in a conversation that my sister’s friends will be seeing my dad’s house on Friday. I asked if my sister was going to be the one showing the house, and dad said yes. I once again expressed my concern that the potential buyers were going to take advantage of this situation. I also said that if my dad signs an offer, he would not be able to negotiate anything. And to make sure he has an attorney available to review the offer (keeping in mind that he is bumping up against July 4th week). I stressed that realtors know market conditions, not the attorneys. Attorneys will only negotiate terms and conditions, not pricing, and I’m not so sure they can negotiate concessions.

I am beyond ticked off with my sister.

i'm sorry you are dealing with this. is there ANY WAY you could convince your dad to take that realtor up on the offer of the reduced commission by explaining how it would not only protect HIM but also protect your sister? i had a sibling who my mom would never say 'no' to on this kind of stuff (he was good at threatening to never help with anything ever again and she feared estrangement) and the only way she would somewhat listen was if we could argue it might jepordize him in some way. if your sister even unintentionaly misrepresents something, fails to disclose something, does/does not do something in line with your dad's state laws on real estate transactions the buyers could come back after both of them and it can be costly (we had to go back to the real estate company on a home we purchased-they had acted within the law but made a minor error proceduraly. they ended up having to rectify the situation and foot our legal bills but they had insurance as a company to cover it). your dad also needs to make sure whatever offer is written up in the manner that best serves him financialy (we learned after a family member's death while settling the estate that when their house sold a handful of years prior that had the purchase been written up a bit differently it would have saved them a few thousand on the sale and several more tax wise).

 

[barkley]

i'm sorry you are dealing with this. is there ANY WAY you could convince your dad to take that realtor up on the offer of the reduced commission by explaining how it would not only protect HIM but also protect your sister? i had a sibling who my mom would never say 'no' to on this kind of stuff (he was good at threatening to never help with anything ever again and she feared estrangement) and the only way she would somewhat listen was if we could argue it might jepordize him in some way. if your sister even unintentionaly misrepresents something, fails to disclose something, does/does not do something in line with your dad's state laws on real estate transactions the buyers could come back after both of them and it can be costly (we had to go back to the real estate company on a home we purchased-they had acted within the law but made a minor error proceduraly. they ended up having to rectify the situation and foot our legal bills but they had insurance as a company to cover it). your dad also needs to make sure whatever offer is written up in the manner that best serves him financialy (we learned after a family member's death while settling the estate that when their house sold a handful of years prior that had the purchase been written up a bit differently it would have saved them a few thousand on the sale and several more tax wise).

p.s. make sure your sister does not hit up your dad for some kind of 'commission' since she's 'saving him so much money by doing all the work for him' (my sib would have set this up in secret w/mom ).

 

[Miffy]

OP, I admit that I'm a bit concerned for your father. From everything you've described, no way should he be making a private sale to the sole buyer he's agreed to see. His house is in a desirable location and it seems these buyers basically want a bargain. Instead, he should be selling his house to the highest bidder, no matter how much trouble it would be to get the house ready to show, list it, etc. It'd be worth it in the end.

I hope you have some way to convince your father of this.

 

[china mom]

Has your father gotten a market analysis from the realtor he has been talking to? Realtors vying for your business will work up the comps for free and it is recommended that you get them from three different realtors before selling, even if you plan on not using any realtor.

Once your father knows the fair market price, he will know if he is being lowballed or not. I still recommend a realtor for all the reasons other posters have already provided. It is tempting to think about pocketing the savings of no commission but there are so many ways the sale could go wrong.

 

[clh2]

OP…further updates. I am very frustrated, and almost in tears.

My sister had her friends through our dad’s house, they are interested, and will be making an offer next week.

My dad asked my sister for realtor recommendations. My sister has a friend of a friend who works with real estate 186 miles away.

My dad is going to get screwed. And there is nothing I can do to stop it. My sister is pushy-always has been. I’m factual, and have been in a negotiating perspective most of my career…I pride myself on making fact-based & well researched decisions.

I know there are concerns about my sister pocketing some of the cash in lieu of using a realtor. At this point, there is nothing I can do about that. I am more concerned about her pushing him into a “deal” for her friends. That would be far more costly (I’m guessing in the $100k range).

I have said my piece to my dad 4 times…once when my husband and I were there, once when I was there by myself, once on the phone, and then a text today. I’m not sure what more I can do.

My other sister…she lives life with blinders on, and in her opinion, if she doesn’t immediately see something, then it is not a problem, So, she is also of no help.

 

[Lumpy1106]

OP…further updates. I am very frustrated, and almost in tears.

My sister had her friends through our dad’s house, they are interested, and will be making an offer next week.

My dad asked my sister for realtor recommendations. My sister has a friend of a friend who works with real estate 186 miles away.

My dad is going to get screwed. And there is nothing I can do to stop it. My sister is pushy-always has been. I’m factual, and have been in a negotiating perspective most of my career…I pride myself on making fact-based & well researched decisions.

I know there are concerns about my sister pocketing some of the cash in lieu of using a realtor. At this point, there is nothing I can do about that. I am more concerned about her pushing him into a “deal” for her friends. That would be far more costly (I’m guessing in the $100k range).

I have said my piece to my dad 4 times…once when my husband and I were there, once when I was there by myself, once on the phone, and then a text today. I’m not sure what more I can do.

My other sister…she lives life with blinders on, and in her opinion, if she doesn’t immediately see something, then it is not a problem, So, she is also of no help.

DF is 87 - what does it matter if he doesn't get full value out of the house? As long as he is able to pay his bills, I say relax - at least it's being resolved.

A different perspective with what I am going through; DF passed away about 3 years ago, DM (80) lives in an apartment near me, and can't quite figure out what to do with the house she has in my home town, a full 8 hour drive away. It's the stuff and the emotional attachment to it. DF's stuff, DGM/DGF's stuff (both passed away about 15 years ago), and yes, the house - it's just overwhelming, I get it. It's dumb to continue spending any money on an empty house, but she also doesn't need the money...yet. You know how senior care can be though - it gets expensive quick and my fear is she will eventually need the money that is currently being whittled away by taxes and insurance. She has no room for any of the stuff, and we don't think there is much of value. It would take a solid week just to go through it all and both my DBs want to just hire someone to clear it out (they both live in another state even further away). I don't think DM is emotionally ready for that approach and maybe never will be, so...?

 

[cabanafrau]

DF is 87 - what does it matter if he doesn't get full value out of the house? As long as he is able to pay his bills, I say relax - at least it's being resolved.

A different perspective with what I am going through; DF passed away about 3 years ago, DM (80) lives in an apartment near me, and can't quite figure out what to do with the house she has in my home town, a full 8 hour drive away. It's the stuff and the emotional attachment to it. DF's stuff, DGM/DGF's stuff (both passed away about 15 years ago), and yes, the house - it's just overwhelming, I get it. It's dumb to continue spending any money on an empty house, but she also doesn't need the money...yet. You know how senior care can be though - it gets expensive quick and my fear is she will eventually need the money that is currently being whittled away by taxes and insurance. She has no room for any of the stuff, and we don't think there is much of value. It would take a solid week just to go through it all and both my DBs want to just hire someone to clear it out (they both live in another state even further away). I don't think DM is emotionally ready for that approach and maybe never will be, so...?

I don't understand? You begin with a statement suggesting OP relax about the situation like there's nothing at risk here if her father gets lowballed -- then give a personal anecdote outlining how expensive senior care can be. That's a pretty significant consideration that may well yet come into play for OP's father as well.

An elderly parent requiring specialized care amid dwindling finances equals plenty of sleepless nights. believe me.

 

[china mom]

@clh2 have you tried to run your own comps just to give your father an idea of what fair market value would be? Or cal a couple of realtors on your own and ask them for a ballpark versus a complete analyses.

If he uses a realtor, commissions would run about 5-6% depending on your area. It would be fair to reduce the price by some of that if selling without a realtor but he should not discount below FMV minus commission.

 

[Lumpy1106]

I don't understand? You begin with a statement suggesting OP relax about the situation like there's nothing at risk here if her father gets lowballed -- then give a personal anecdote outlining how expensive senior care can be. That's a pretty significant consideration that may well yet come into play for OP's father as well.

An elderly parent requiring specialized care amid dwindling finances equals plenty of sleepless nights. believe me.

Important message here is "as long as he is able to pay his bills". He is far better off selling, even at a loss, than having it sit there and losing his investment to taxes and insurance - which is what my DM is doing. And believe me, I know about the sleepless nights.

 

[cabanafrau]

Important message here is "as long as he is able to pay his bills". He is far better off selling, even at a loss, than having it sit there and losing his investment to taxes and insurance - which is what my DM is doing. And believe me, I know about the sleepless nights.

It may seem he can pay his bills at this point, but it can easily change in a flash. My mom was always fine, until suddenly last fall it became clear she wasn't, virtually overnight at 85 years of age. It's become something my DH and I now have to balance how to help without significant impact to our own retirement picture.