Private Treaty Illustration of Where All the Money Goes when using a Realtor | Real Estate Agent or Broker
Put in your own numbers to see how it all adds up by using our Traditional Real Estate Comparison Form
*NOTICE HOW THE ORIGINAL AMOUNT OF MONEY WANTED FOR
REAL ESTATE CONTINUALLY IS REDUCED…
- Owner wants $200,000.00 for Real Estate.
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Realtor/Real Estate Agent or Broker says we will list your home for $200,000.00
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Realtor/Real Estate Agent or Broker tells you in order for you to get this amount you first need to fix this that and the next thing to get the property ready for sale.
Total $2500.00 in repairs.
Original Asking Price $200,000.00
Repairs/Fix up $2,500.00
New Total = $197,500.00
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Realtor/Real Estate Agent or Broker informs you after one month that it is a slow market and says lets drop it the price by $10,000.00 to get more interest.
Old Total $197,500.00
Price Reduced (Slow Market) $10,000.00
New Total = $187,500.00
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Realtor/Real Estate Agent or Broker comes back after two more months and informs you that the market is really slow market and says drop it by another $12,500.00
Old Total $ 187,500.00
Price Reduced
(Very Slow Market) - $12,500.00
New Total = $175,500.00
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Now at $175,000.00 you are at the “Motivated Seller Stage”
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Offers start to come in at $165,000.00 and you actually can find a person who is qualified and committed to buy the Real Estate at $170,000.00
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Now you must pay your Realtor/Real Estate Agent or Broker their commission 5% to 7% For this illustration we will use 6%
Old Total $170,000.00
Realtor/Agent/
Broker Commission - $10,200.00
New Total = $159,800.00
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Property inspection comes in and says it needs $8,000.00 in repairs
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You negotiate further and settle with buyer for ½ and you grant a $4,000.00 repair credit
Old Total $159,800.00
Repair Credit - $4,000.00
New Total = $155,800.00
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Buyer asks for $1,500.00 in seller assistance
(Help with closing costs…)
Old Total $155,800.00
Seller Assist
(Help with Closing Costs) - $1,500.00
New Total = $154,300.00
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Transfer tax is 2% which you share with the buyer. Your 1% share of the tax would be $1,700.00
Old Total $154,300.00
1% Transfer Tax - $1,700.00
New Total = $152,600.00
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You can see that after closing you are walking away with $152,600.00 However, you did NOT calculate how much money you LOST by waiting to sell the property. For illustration purposes we will use 3 months.
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Property Taxes at 3months $616.26
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Interest on $152,600.00 for 3 months at 5% $1907.49
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Insurance costs for 3 months
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Utilities costs for 3 months
Property Taxes $616.26
Interest Lost $1907.49
Homeowners Insurance + $249.99
Utilities Costs + $906.00
Total Lost Over 3 Months = 3679.74
*
Remember, this is the money lost over a 3 month period. You can check the average in your area but it is seldom that homes sell within 3 months using Private Treaty (Traditional Real Estate sales using a Realtor or Real Estate Agent or Broker).
*
State College Pennsylvania averages 5.3 months to sell a home.
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See for yourself how much it costs you to sell your home using Private Treaty (Traditional Real Estate sales using a Realtor or Real Estate Agent or Broker). Download our free worksheet to enter your own numbers. Click Here to Download the Form
a
We at True Blue Auctions can show you a better way to sell your Real Estate using the Auction Method.
Click Here to see how
2Ref. CompuQuotes on Insurance Average Homeowners Insurance cost at $1000.00 per year. Click Here for Reference
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