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We're trying to estimate how much it will cost to sell and move and it looks like this might be a minimum. We've figured $15k in commissions on a $250k house. If a buyer slashes another $10,000 off the listing price, we'll be lucky. Buyers agents seem to love to ask for their closing costs paid by seller, plus the seller's closing costs; then there's your "fix up" expenses preparing the house and finally moving expenses.
It's looking like at the least a minimum of $35,000 out the window to sell and move. Not to mention all the costs incurred after moving into the new place. It's very expensive to sell and move these days, isn't it?
Has anyone kept a totalled list of their costs in the past?
We're trying to estimate how much it will cost to sell and move and it looks like this might be a minimum. We've figured $15k in commissions on a $250k house. If a buyer slashes another $10,000 off the listing price, we'll be lucky. Buyers agents seem to love to ask for their closing costs paid by seller, plus the seller's closing costs; then there's your "fix up" expenses preparing the house and finally moving expenses.
It's looking like at the least a minimum of $35,000 out the window to sell and move. Not to mention all the costs incurred after moving into the new place. It's very expensive to sell and move these days, isn't it?
Has anyone kept a totalled list of their costs in the past?
You shouldn't include the real estate commission as an "expense" in the total cost of moving. Otherwise, try to sell the property by owner.
Your true moving costs are: local or long distance mover, packing services, boxes etc.; costs of getting the house ready to sell (fix odds & ends etc.), costs of getting the new house the way you want (typically $2,000 or $3,000 for changes, decorating etc.); if long distance you have to consider your travel costs, hotel, meals, etc.; closing costs on the next property, difference in mortgage payments etc. Those are considered true moving costs.
You shouldn't include the real estate commission as an "expense" in the total cost of moving.
Huh? Why not?
And if not... which of the sellers pockets do you expect to receive your commission from?
Quote:
Your true moving costs are...
Nice attempt at dodging half the question.
Unless the owner isn't selling... then selling costs are there too.
Quote:
Otherwise, try to sell the property by owner.
What? And miss out on all the benefits and joys of working with these pro's?
Maybe the sellers should press for flat fee contracts more often?
Every expense category mentioned by you (and Maryjane) can be trimmed some...
but none of them can be ignored. Especially the RE sales commission.
(btw you didn't list attorney fees either)
Last edited by MrRational; 12-18-2012 at 07:31 AM..
You can't include the buyer's closing costs as an expense with moving as you're not actually paying them. No seller actually pays a buyer's closing costs. The buyer is financing their closing costs. The seller is still agreeing to the same net sales price as they would if there were closing costs involved or not. $100k sales price or $105k sales price with $5k going to the buyer. They both net you $100k.
You can't include the buyer's closing costs as an expense with moving
as you're not actually paying them ... No seller actually pays a buyer's closing costs.
Huh? What do these points have to do with the OP's question/concern? Nothing.
The issues raised are:
1) the sellers direct out of pocket expenses related to the sale, and
2) the sellers transaction costs; specifically sales commissions
Huh? What do these points have to do with the OP's question/concern? Nothing.
The issues raised are:
1) the sellers direct out of pocket expenses related to the sale, and
2) the sellers transaction costs; specifically sales commissions
hth
Well, the buyer's closing costs aren't really the OP's cost as long as the price can be increased to cover the requested costs without affecting the seller's bottom line as FalconheadWest indicated. As such, they won't affect the out of pocket expenses that the OP is concerned about. Now, if the price can't be increased (perhaps an appraisal issue), then it would have an expense impact.
Huh? What do these points have to do with the OP's question/concern? Nothing.
Read his original post. He says, "Buyers agents seem to love to ask for their closing costs paid by seller, plus the seller's closing costs..." So, yes, the OP is including buyer's closing costs as one of his expenses. That's what my points have to do with it, thanks.
As noted... the OP made several points. Then others made additional points.
Some forum posting suggestions:
Please quote which point your comment is responding to.
Otherwise we're left with what often amounts to a non sequitur...
or at the least a comment that requires yet another statement to clarify it.
Thanks.
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