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Real Estate Question; how much will i pay to sell
Topic Started: Jan 16 2018, 09:45 AM (359 Views)
The_Shoot
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Destruction
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I have a house that I am in the process of flipping and my tenants are interested in buying before I list with realtor.

What would be the difference if I sell with realtor for 225,000 in MN [(closing/taxes/comission) just wanted an estimate to how much i'd pay for comission and closing] vs. sell to them (only pay lawyer 1% to file paperwork). I was planning on charging them less if I sell privately.

Thanks for any help
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Iowan@heart
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The_Shoot
Jan 16 2018, 09:45 AM
I have a house that I am in the process of flipping and my tenants are interested in buying before I list with realtor.

What would be the difference if I sell with realtor for 225,000 in MN [(closing/taxes/comission) just wanted an estimate to how much i'd pay for comission and closing] vs. sell to them (only pay lawyer 1% to file paperwork). I was planning on charging them less if I sell privately.

Thanks for any help
There are probably realtors on here who could give you a better answer but the short answer this: If you don't use a realtor, you'll save the sales commission (4-7%) and as importantly time. If you use the realtor, they would argue that you'll get a higher price that would more than compensate you for the commission and loan interest.

Part of the answer depends on your loan on the property as you could be paying up to 1% a month depending on how the loan is structured. If it's cash, you still have some opportunity cost, but it's obvious less.

I'd tend to ignore all the other closing costs in the equation because they will be the same regardless of whether you use a realtor or fsbo.
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mndak
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The_Shoot
Jan 16 2018, 09:45 AM
I have a house that I am in the process of flipping and my tenants are interested in buying before I list with realtor.

What would be the difference if I sell with realtor for 225,000 in MN [(closing/taxes/comission) just wanted an estimate to how much i'd pay for comission and closing] vs. sell to them (only pay lawyer 1% to file paperwork). I was planning on charging them less if I sell privately.

Thanks for any help
If you have a buyer already you don't really need a realtor. It's just a matter of getting the proper paperwork drawn up.

Although if you choose to get a realtor, I would negotiate their rate since 80% of their job is already done for them.
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