OT: q for real estate agent

[rcnute]

We're looking for a new house and are using the agent who helped us find our current place. Good guy, knows his stuff and is very helpful.

Turns out our neighbor wants to buy our house and we'll probably rent it back for a bit until we find a new place to buy (or rent for awhile as the market is not buyer friendly now around Seattle).

Should I use our agent to help with the sale (or suggest a reduced commission since he didn't need to market the place/find us a buyer)? This is not my area of expertise. Thanks for any ideas.

Ryan

[azrider]

Originally Posted by rcnute

Should I use our agent to help with the sale

We didn't.

We found our own buyers and they're doing a 1030 exchange on place we're selling. We've done everything ourselves as far as paperwork and are saving a HUGE (to me) chunk of change in the process.

[MattTuck]

You should still hire an attorney to make sure that everything is in order.

[yngpunk]

Originally Posted by MattTuck

You should still hire an attorney to make sure that everything is in order.

Agree with Matt here. Even if you are using an agent, you should still hire an attorney.

Also, you don't "need" a real estate agent to sell your house...find a good real estate attorney and he will likely have the "standard" sales and lease contracts available and can write up and review the contract for you as well as guide you through the sale/closing process.

I understand that appeal of using a real estate agent, esp. if you are seeking to market your house, but if you already have a ready and willing buyer in your neighbor, hire an attorney. If this sale doesn't go through, you can then always use a real estate agent

[Nooch]

assuming you're under no obligation to him for listing the house, as you said he's helping with the purchase of the next, you're in the clear.

there's certainly the possibility that he'll be offended, but you've found the buyer, and come to terms -- you need an attorney. There's no sense in listing the house in order for your neighbors to buy it.

it just works out to be good luck for you, bad luck for him.

[gngroup]

Hire an attorney and/or ask the agent if he'd like to represent you for a fractional fee. It is always nice to have a legal buffer (ie. the Real Estate Brokerage) between you and the buyer/seller. Definitely don't do the paperwork yourself. Saving money on this is not nearly as important as protecting yourself from future legal issues (even if that may seem unlikely).

[avalonracing]

I'm an agent and I wouldn't go it alone. As others have said either use the agent (a fee reduction as he doesn't have to market it might be in order) or a real estate attorney. I will say that things can go south quickly, even with friends, and you might want an intermediary if they do.

Likewise, in this market I would make sure that you offered your house on the open market, you don't want to undersell it. If you are concerned about that you can always pay a few hundred to get your own appraisal to set the price.

[notsew]

The seattle real estate market is bonkers right now, I'd be worried I was leaving money on the table making a deal out of the market. I'm sure you've considered that though.

One more vote for the lawyer approach.

[stephenmarklay]

Man each of these responses are great and I could have said the same thing myself. I have sold real estate for about 12 years and I am impressed by the comments.

Already said but worth repeating. Are you missing out on $ by selling without market exposer? Seattle is a great example of an area that is seeing many multiples of offers and we in Spokane are seeing it to a lesser extent.

If your agent is not involved, then get an attorney to supply and write up the purchase and sale. Again, there are a lot of safety nets the attorney will not cast as a brokerage would.


Great luck with the move!

[93legendti]

Originally Posted by avalonracing

I'm an agent and I wouldn't go it alone. As others have said either use the agent (a free reduction as he doesn't have to market it might be in order) or a real estate attorney. I will say that things can go south quickly, even with friends, and you might want an intermediary if they do.

Likewise, in this market I would make sure that you offered your house on the open market, you don't want to undersell it. If you are concerned about that you can always pay a few hundred to get your own appraisal to set the price.

+1. My real estate agent continues to find deals that I can't comprehend.

Real estate is no place to be informal or cheap, for lack of a batter word.

[Ken Robb]

I am a retired broker in California. Real estate laws and practices vary greatly from state-to-state. When I had buyers from New York and other states they were amazed that in California lawyers were rarely involved in routine residential transaction as escrow and title companies handled closings whereas in N.Y. buyers and sellers sat around a table with their respective lawyers and signed papers, passed checks, etc.

I don't know how things are usually done where you live. You have a good agent so I think you should ask him what he thinks of your plan and whether he could/would help you with the sale. I handled a couple of similar deals for clients for a reduced fee. They were out of state investors and I was able to get the sale closed without their flying cross country to deal with it. OTOH I got a call from very loyal clients (4 deals over 15 years) who were embarrassed/concerned that they might not need me to sell their home. They were moving to Texas and their next door neighbor offered to buy their rather tired home. The price offered was fair and there were no weird contingencies so I referred them to a good escrow officer who handled the whole deal very well. We are still friends. They didn't need me this time. I'll bet your good agent will do what he thinks is best for you. That's how he builds his business for the long haul.

[cnighbor1]

I use our agent to help with the sale (or suggest a reduced commission since he didn't need to market the place/find us a buyer)? Yes lower commission He can proper paper done thru a brokerage agent
and you want him on your side

[tiretrax]

No need to use the agent. Just be sure you're not leaving money on the table. Not sure why they're doing a 1031 on a residential property unless it will be rental property, but that's not your worry. Use an attorney - maybe the one at your title company.

[jlwdm]

Washington is a state that generally has little involvement by Real Estate Attorneys. Washington has a constitutional provision that allows real estate agents to make changes to the standard contracts and it will not be considered the unauthorized practice of law. Arizona is the same. Texas on the other hand requires every change that is not factual be prepared by an attorney. So in Texas you have an attorney tied to every title company office.

I was an attorney in Washington and have been involved in some real estate transactions there (more as an agent from out of state) and have sold real estate in Arizona and Texas for the last 20 years.

I work in high-end real estate and have done transactions at reduced fees in these types of situations for good clients. I am here for the long term and I try to always do what works best for my clients in the long term.

I have an expertise in my area and pricing varies substantially between properties so I feel I provide great value on pricing.

It depends on where you are in Seattle and what price. My wife and sister always have had a house in the Seattle area. Last May they decided it was time to cash in on there house they had remodeled because of all of the Chinese buyers in Bellevue in the mid $2m price range. They sold quickly for a little over list price and 8 out of 10 buyers looking at the house were Chinese.

Pricing is your big issue.

Jeff

[MacMan]

In my (recent) experience, an agent is extremely helpful between contract and closing. I assume there is a due diligence period, will be an inspection, and likely an "amendment to address" concerns, etc. I would negotiate a fixed fee with the agent at a value both of you are comfortable with.