{"id":553,"date":"2006-10-19T07:03:27","date_gmt":"2006-10-19T14:03:27","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=553"},"modified":"2006-10-21T05:59:07","modified_gmt":"2006-10-21T12:59:07","slug":"ask-the-broker-how-do-i-figure-out-if-this-deal-makes-sense","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/553\/ask-the-broker-how-do-i-figure-out-if-this-deal-makes-sense\/","title":{"rendered":"Ask the Broker: How do I figure out if this deal makes sense . . . ?"},"content":{"rendered":"

Here’s a question that encompasses all of my favorite real estate homilies: Every real estate problem is essentially financial. Definitive answers require calculation. Competent adults can agree to anything. And: When buying or selling real estate as a principal, it’s good to have a real estate license.<\/p>\n

I am currently selling my house and have been talking to realtors.<\/p>\n

We have seen the comps and our house should probably go for about $290,000. We have a friend that we asked if she wanted to buy our house. She looked at it and told her sister (who is a real estate agent) that it was for sale. Her sister called us and wants to buy our house as an investment. So we essentially found the buyer ourselves. She is offering us an immediate buy with a selling price of $280,000. The question is… She wants us to pay a 5% realtor commission and all the closing costs. She said it’s a good deal because we won’t have to worry about open houses and then maybe the house won’t sell for months. We could sell right now and rent back until we are ready to move in Jan. I would think that since we are theoretically selling the house ourselves (we found the buyer) then why should we pay her a fee? Any help would be greatly appreciated.<\/p><\/blockquote>\n

This is ultimately a net proceeds problem, but we’ll come back to that.<\/p>\n

First, the fact that your buyer is a licensee matters. She can take compensation for the transfer of real property and then apply that to the costs of transferring that property, a very sweet advantage. When I buy an MLS listed property, I go in with a 3% advantage over an unlicensed buyer. Commission income is taxable whether taken in cash or in kind, but my entry (or exit) costs are essentially reduced by the amount of the commission.<\/p>\n

Second, whether or not you pay commission in this circumstance is a matter of mutual agreement. Your buyer wants to structure the deal with a commission for her in order to have that money available in the escrow Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Here’s a question that encompasses all of my favorite real estate homilies: Every real estate problem is essentially financial. Definitive answers require calculation. Competent adults can agree to anything. And: When buying or selling real estate as a principal, it’s good to have a real estate license. I am currently selling my house and have […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,6,5],"tags":[],"class_list":{"0":"post-553","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":443,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/443\/blogoff-post-66-ask-the-broker-homeownership-and-the-poor\/","url_meta":{"origin":553,"position":0},"title":"Blogoff Post #66: Ask the Broker: Homeownership and the poor . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"From my sister-in-law:Why isn't there more opportunity for poor people to own their homes?If you were to substitute the word \"horses\" for \"homes\", the question would answer itself, wouldn't it? Poor people rent rather than own because their income is too low, their credit scores are too low, or their\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":398,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/398\/blogoff-post-21-ask-the-broker-what-about-my-pets\/","url_meta":{"origin":553,"position":1},"title":"Blogoff Post #21: Ask the Broker: What about my pets . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"Here's a question dear to Cathy's heart:I'm selling my house and have pets so I don't want to put my house on a lock box. All the realtors I've talked to say I have to put my house on a lock box, and the one who I wanted to give\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":438,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/438\/blogoff-post-61-ask-the-broker-can-i-escape-without-taking-a-scrape\/","url_meta":{"origin":553,"position":2},"title":"Blogoff Post #61: Ask the Broker: How can I escape without taking a scrape . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"Here's a truly ugly problem:I'm being transferred and need to sell my house in a new subdivision. Unfortunately, the builder is still selling new houses. To make matters worse, I bought during the summer of 2005, and the builder has actually reduced its price from what it sold it to\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":725,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/725\/ask-the-broker-are-new-build-prices-negotiable\/","url_meta":{"origin":553,"position":3},"title":"Ask the Broker: Are new build prices negotiable?","author":"Greg Swann","date":"December 1, 2006","format":false,"excerpt":"When purchasing a home or condo in a new development are the prices quoted firm or can the buyer negotiate the selling price with the broker? Are the costs of \"upgrade options\" negotiable.The definitive answer: Maybe. New home sales is a retail business. The builder has to move current inventory\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2905,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2905\/ask-the-broker-what-relationships-must-be-disclosed-in-a-real-estate-transaction-and-what-are-the-consequences-if-they-arent\/","url_meta":{"origin":553,"position":4},"title":"Ask the Broker: What relationships must be disclosed in a real estate transaction, and what are the consequences if they aren’t?","author":"Greg Swann","date":"April 5, 2008","format":false,"excerpt":"We haven't done one of these in a while. We get a lot of really good questions, but, for most of them, the answer is the same: \"You need to talk to a really good real estate attorney in your jurisdiction.\" This one is different, with a couple of interesting\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":403,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/403\/blogoff-post-26-if-the-buyer-has-no-agent-what-does-the-listing-agent-get-paid\/","url_meta":{"origin":553,"position":5},"title":"Blogoff Post #26: Ask the Broker: If the buyer has no agent, what does the listing agent get paid . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This question came in earlier today. It's actually pretty simple, if you're an insider, not so simple if not:I am selling my house with one agent and the buyer does not have any agent. My agent brings the buyer and they put in an offer. How much commission will I\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=553"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/553\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}