Originally posted by BertramBass
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Originally posted by RiverRat1 View PostDo you people really not understand? You can't just add 6% to "market value" Holy moly you guys make me want to drink whiskey.
I build houses for a living. I add up my costs, add in my profit, add 7.5% (for roughly 1.5% escrow fees and the realtors 6%) and list the home. It is usually above market price and becomes the new market price in the area when it sells. (Cells, sales. LOL) Tried and true system in a raising market.
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Originally posted by BertramBass View PostIf a seller wants to add 6%, so be it. If it sells for that price, it is the new market value, even if it is overpriced. (Rising market)
I build houses for a living. I add up my costs, add in my profit, add 7.5% (for roughly 1.5% escrow fees and the realtors 6%) and list the home. It is usually above market price and becomes the new market price in the area when it sells. (Cells, sales. LOL) Tried and true system in a raising market.
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I think we are sparring over terminology.
Yes! A property is WORTH what a willing buyer will pay, and what a willing seller will accept.
FAIR MARKET VALUE(FMV) is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
APPRAISED VALUE is an evaluation of a property's value based on a given point in time. The evaluation is performed by a professional appraiser.
None of this is an exact science, but can be analyzed and put into small ranges and in appraised value case a particular no. Appraised value does not always equal market value.
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Originally posted by BertramBass View PostIf a seller wants to add 6%, so be it. If it sells for that price, it is the new market value, even if it is overpriced. (Rising market)
I build houses for a living. I add up my costs, add in my profit, add 7.5% (for roughly 1.5% escrow fees and the realtors 6%) and list the home. It is usually above market price and becomes the new market price in the area when it sells. (Cells, sales. LOL) Tried and true system in a raising market.
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Originally posted by RiverRat1 View PostIs 6% a magic number? If anyone can just add 6% to the price to cover commissions why not just add 8% or 30%?
Or better yet add the 6,8, or 30% and sell it yourself? Which is what this whole thread is about.
You are right, the thread was about using a realtor or not using a realtor. The conversation went sideways when someone suggested that the realtor fees just be added back into the sales price, then some people balked. I was merely trying to state a case to the contrary.Last edited by ecallarman; 10-15-2018, 01:00 PM.
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Originally posted by Birddog66 View PostWhat would happen to this system in a non-rising market?
I can't wait to hear the comments on that... LOLLast edited by BertramBass; 10-15-2018, 01:01 PM.
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Originally posted by BertramBass View PostI do not build spec houses in a declining or flat market. I am too conservative business wise. I wait for a raise in foreclosures and then purchases them at the right price (for me). I then remodel the foreclosures and rent them out, depreciating them along the way. When the market shows signs of a rebound, I sell the rentals and purchase lots to build on.
I can't wait to hear the comments on that... LOL
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This has become a repetitive, lower educated discussion.
Closest and very elementary comparison is if you want to sell your truck on the private market.
1. Park it in the driveway/road with a "For Sale" sign on it.
2. Write "For Sale" on the window with shoe polish or a for sale sign
3. Post it on Craig's List, Ebay, Classifieds, or other postings.
Question: Which effort sells quicker and likely closer to the asking price?
That's listing agent vs no listing agent.
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