What should I know before I sign with a realtor to sell my property?

Question

I"I've never dealt with a realtor before. How much commission do they get on a small warehouse? How much will the gov get for taxes? How can I be sure I'm getting a fair price for the property? Would I be better off renting it? I took care of my paralyzed husband for 8 years while running our business.He passed away and now I'm just tired but need the money to survive as I'm now not in the best of health. Will a realtor try to take advantage of my situation? What doe's signing with a realtor entail?

Answer 1

You can relax and be assured this will be a lot easier than you think. It's a realtor's job to make the process easy for you. That's why people use realtors instead of trying to sell it by themself.

Any of the national name realtors will do. In fact, regardless of which realtor you sign with you're really getting all of them. Here's how it works.

Almost all realtors belong to what is known as a Multi-List. It's a big pool of all the properties for sale in your area. When you list your property with a realtor your property goes into the Multi-List so other realtors from other offices will also try to find a buyer for you. It doesn't cost you anything extra for this. If another realtor finds your buyer, your realtor just shares his commission with that realtor. The advantage to you and the buyer is tremendous. You've actually got hundreds, if not thousands of people working for you to sell your home and a buyer can go to any realtor and see all the properties for sale, not just the ones listed through that realtor.

Before you sign with a realtor they will do what is known as a CMA (Comparative Market Analysis). It's a fancy name for an appraisal. They're just not licensed appraisers so that can't call it an appraisal. In other words, they'll figure out what your property is worth and make a recommendation to you. Their fee is based on a percentage of the sales prices so they have no incentive to under value your property. Most people get CMAs from several realtors. It's your right to shop around.

When shopping around give weight to the individual agent. Down the road you're going to be working closely with this person so make sure he/she is a good fit for you, personality wise.

Don't be afraid to negotiate their fee when you shop around. Realtors are hungry right now and most will discount their fee without hesitation.

A listing agreement basically does 3 things. It sets the price you're going to ask for your property, it specifies the fee you'll pay, usually a percentage of the final selling price, and it specifies how long you're going to give them to sell this property.

Answer 2

Sign a 60 day listing. If you are happy, renew it. If unhappy, it's over fast. The best agents will make you smile and they will sell your property quickly for a good price.  Give them a chance to impress you.

Answer 3

Commercial RE commission is 10% of the sales price.

Capitol Gains is 16%, no of the sale, but the profit.

Ask how many commercial listings of their own the agent has closed this year.  Residential sales mean nothing here, differant ball game.

The answer should be at least 4 for 2008, 6 if he is going for "in the passt year"

Answer 4

Don't just pick any realtor.  When you contact a realty company, list with a realtor that has the highest sales track record in the office.  Some realtor agents will list the house or  warehouse and sit back and let others do the work.  You will probably have to list with a commercial realestate office.  Ask the realtor  what advertising they will be doing, how they will market your property.  Ask what basis they are using to appraise your property.  Real Estate fees are generally around 6-7%. Call different realtors to see what the rates are in your area.  Don't list for over 180 days.  You may even want to consider 90 days if you see the realtor has done little to sell your property.  When you sign the agreement, you are locked into that agreement for the time duration.  If you think you have a possible client to buy.  Ask for an exemption, listing the clients name on the agreement.  Good luck, and God bless.

Answer 5

How much commission?  It is negotiable, on commercial it can range from 8% - 10%, depending on the listing price.

Taxes?  Will vary by area, there may be capital gains, transfer tax or other fees.

Fair price?  The Realtor should bring a CMA (competitive market analysis), which will show what similar properties have been listed or sold for.  

Renting it?  If you want to deal with it.

Realtor take advantage?    If they show you a CMA, you will know what similar properties have sold for.  You are the boss, you set the price.  If you are concerned, do a short listing and if you are happy, relist.

Signing with a Realtor will entail giving them permission to market the property for you and represent you in the sale.