<p>jym626…you bring up some interesting points…</p>
<p>I actually don’t know where the master bedroom wall is… will have to look into that. :)</p>
<p>We closed on our sale last Friday and the money is in the bank…woo hoo! When we listed it in April we were prepared for a long wait but had it under contract in 18 days. Our buyer had excellent credit and a 35% down payment and it still took over 6 weeks for them to get through the mortgage process. So glad to be done with this.</p>
<p>swdad1…congratulations…</p>
<p>Still a dead market here, sigh. Doesn’t matter how you stage… or price (below FMV, but won’t give it away). Rare viewings- last couple from Iowa didn’t appreciate the acre lot with hill/ravine woods and front flat cul de sac… “not enough backyard”. No imagination- forts, street hockey… At least we had a great place all those years, now need to downsize.</p>
<p>Looking for a home to retire in FL. Zillow is interesting- a must search site. In FL the peak price year seems to be around 2006- I feel sorry for those who bought then and are trying to sell now, values now comparable to before the peak. I don’t care how much they owe on their mortgage- I won’t pay that so they can break even. We are lucky- we can afford a second home, no mortgages. Was there recently- btw househunting there in June is like here in January- you want to be indoors…</p>
<p>Cellomom- aren’t grand/parents wonderful?! My dad’s small house (a '50’s 1000 SF ranch we grew up in) is in need of repairs- I won’t help with any as he is too critical- couldn’t do them right… He complained about how the city was redoing street stuff but his yard… When the house needs selling my siblings can put in whatever work or sell it as is. Interesting how fussy he was when we were kids and someone was just coming to the door- we had to clean up but now that he has to clean and dust it is thick (mom died nearly 30 years ago- she wasn’t a good housekeeper).</p>
<p>Speaking of negotiating commissions, this has been a hot topic on a couple of real estate forums I watch. The question came up: can a buyer take the commissions out of the equation and pay them on the side, reducing the sales price accordingly. The dollar amounts stay the same, the only change is the total sales price. So for example on a $1million house with a 5% commission, take the 5% off the sale price for a total price of $950K, and pay the $50K commission outside of the purchase contract. The advantage of this is lower real estate taxes (in CA, taxes are based on purchase price) and lower interest payments over the life of the loan (since less is being financed).</p>
<p>It’s hard for most traditional Realtors to wrap their brains around this one, especially since the commission is a contract between the seller and the listing agent with co-broke agreements based on that contract. There are issues of HUD-1 disclosure and what might be allowed by the lender. There’s also a big debate on who is actually paying the commission, the seller or the buyer. The money comes from the proceeds of the sale, but isn’t it just a pass-through from the buyer?</p>
<p>Taking the $1mill house, in Scenario 1 for a traditional purchase the buyer puts down $200k (20%) and finances $800K. The seller pays the commission to the listing agent who splits it with the buyer’s agent. Scenario 2: commission paid by the buyer outside of the sale price, take that $50K off the purchase price, put $190K (20%) down on a $950K house, and finance $760K. The buyer saves about $2500/year for not financing that extra $40k, and another $600 or so per year on property taxes.</p>
<p>^Interest idea, vballmom. So instead of the contract showing a sale price of $1MM, it shows a sale price of $950K? And what obligates the buyer or seller to pay the $50K to the realtor(s)? Would it be listed in the sales contract?</p>
<p>Then the sale gets recorded at $950K, which might throw off comps, because an appraiser might not have access to info about the terms of sale and think the house just sold for $950K.</p>
<p>I think both buyer and seller see them selves as paying the commission. The price is set higher than the amount the buyer needs in order to cover the commission. </p>
<p>A neighbor had his home listed for a couple of summers, then sold it, after his listing expired to a drive by for a price a few percent below what the sales price minus commission would have been.</p>
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<p>Yes the sale price would be $950K in scenario 2. The seller has presumably signed a listing agreement spelling out the terms of the commission with the listing agent. That would have to be modified by the seller. I think the new terms could be done as a side contract rather than as part of the sale. The idea isn’t to cheat anyone out of a commission, by the way. But this may not be legal in every state. The reduced sales price would definitely affect comps…but if the entire commission-based business model becomes obsolete then that re-levels the playing field for everyone.</p>
<p>There’s also the Redfin business model where half of the buyer’s agent commission is rebated back to the buyer.</p>
<p>Well…I just got back from looking at the townhouse…and I didn’t bid on it…just like I didn’t bid on a similar townhouse 2 years ago. Not that I expected to bid on it that fast…but I am not sure I am going to bid on it.</p>
<p>First off…the apartment I have now…I just love the view.</p>
<p>Second…and most important…the townhouse needs a lot of work. I knew it would, but…</p>
<p>The seller and the broker think it is priced right…</p>
<p>And I look at it like this…</p>
<p>All fixed up the townhouse is worth X.</p>
<p>If I buy it for Y and fix it up and it costs (z).</p>
<p>Y+ z is more than what it is worth (x).</p>
<p>So why would I buy something, fix it up, and then end up costing me more than the place is worth?</p>
<p>The place needs a new kitchen, bathrooms, flooring, and a deck sags and has to be supported better…</p>
<p>And that is not everything it needs.</p>
<p>How much is a kitchen remodel, 3 bathrooms remodeled (the tubs are ok) etc. Going to cost me?</p>
<p>If I do it middle of the road i think I still am going to be out over 70,000…</p>
<p>People price their places like they are already fixed up…</p>
<p>So dstark, are you really disappointed, or are you secretly relieved?</p>
<p>Yep, that’s right, dstark. You’ll spend more to fix it up than the house will be worth. That’s why we’re still living in our dump.</p>
<p>I am sorry you aren’t going to buy it. I was looking forward to the neighbor tales. JK!</p>
<p>I envy you getting to live in an apartment with a view. Enjoy it!</p>
<p>Walk away. Or at best, give a lowball offer. Having lived through the remodel-from-h*ll not too long ago, I am telling you it is a ton of work, hassle, inconvenience. etc. If you were to have it done before you move in it’s easier, but if you sell your place and have to deal with the contractors, living without bathrooms or a functional kitchen, … yuk. And to have to rebuid the deck. Sounds like way too much work. You have to REALLY Love the place and REALLY get a GREAT deal to make it worthwhile. Assume that no matter what budget you set for your remodel you will, for any variety of reasons, exceed it by probably 15% or more. I am having flashbacks just thinking about our nightmare remodel. It was supposed to take 3 mos. It took 10. And the contractor was crazy. Don’t even get me started. Ultimately we love what we did, but would never got through that hassle again.</p>
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<p>Excellent question, hayden.</p>
<p>He pleads the fifth…</p>
<p>^ That’s what I’d be drinking (a fifth) if I had to go through another remodel like that anytime soon!! Run away!! Run far, far away!!!</p>
<p>No…I am disappointed. And like jym626 says…once you start remodeling it costs more than you think and it takes longer too.</p>
<p>It’s not over though.</p>
<p>If the seller and the agent are wrong about the pricing and they lower ithe price, I think
we will buy it…if i’m wrong…we won’t.</p>
<p>So how thick are the walls, and do the bedrooms share an adjoining wall between the 2 units? Inquiring minds want to know :)</p>
<p>:)</p>
<p>The master bedroom and my wife’s friend’s unit are not adjacent. No problems there. However…who says we have to do it in the master bedroom? ;)</p>
<p>TMI!!
Well then why did your wife’s friend bring up not wanting to hear you and your DW’s intimacies through the wall?? Maybe your DW is doing some serious bragging, or exaggerating!! You need to reward that woman!! Buy her a townhouse :)</p>
<p>Lol…</p>