Peter T. Roach is a New York collection lawyer, who enforces creditors' rights throughout the state of New York. To receive expert advice on collecting debt, visit http://www.roachlawfirm.com or call Peter T. Roach & Associates, P.C. at 1-800-824-0284.
When you've decided you want to sell your Long Island house the main decision you have to make is whether or not you want to use a Real Estate Broker to help you sell. If you elect to use a Broker, the Broker does the work for you and you are essentially done. Refer to the section below that explains the broker's fees. If you elect to do it yourself, refer to my check list below to help you through the process.
Only Step: Decide if you want a Real Estate Broker.
Note: If you hire a broker you will incur the broker fee. If you don't hire a broker you run the risk of a less efficient sale process.
A. If you Elect to Use a Real Estate Broker
If you elect to use a Real Estate Broker you will gain the benefit of having someone do strong advertisement for the sale of your home with no additional cost to you. In addition, you will gain the benefit of the Broker's knowledge of the real estate market and will sell your house at a competitive price.
The Broker Fee
The Real Estate Broker is paid on commission; which means they are paid percentage of the proceeds from the sale of your home. The types of commission are as follows:
· "open listing" is one that authorizes the broker to find a buyer and, if successful, earn a commission of a certain percentage of the sales price.
· "exclusive agency" provides the same, except that the broker will earn the commission if any broker finds a buyer and an "exclusive right to sell" provides that the broker will earn a commission if the house is sold, regardless of who finds the buyer including the owner!
· Multiple Listing Services is an organization of many brokers that agree to share their listings with each other. This is in an attempt to provide the maximum exposure for the sale of a particular property.
Commission Rates
Commission Rates vary from the 6% - 7% "full commission rates" to as low as
2% "Discount rates".
Note: Lower commission rates are often offered in exchange for an "exclusive" listing, but this means that only one real estate broker will be seeking purchasers for you.
TIP: It is generally a good idea to contact your real estate attorney well in advance of selling your house and ask him/her to read the brokerage agreement and advise you before you sign it.
B. If you Elect to - The Do It Yourself Checklist
If you elect to sell your house without retaining a Broker, here is a checklist that you will find useful:
1. Determine the correct asking price.
Note: If you set the asking price too high, you will scare away potential buyers. If you set the asking price too low, you will ultimately sell your home for less than you could have.
Note: To determine the correct asking price, consider what other similar houses in your neighborhood have sold for and add 10% to your asking price.
Note: If you cannot determine what other houses in your neighborhood sold for, hire an appraiser to appraise your home. This will only cost a couple hundred dollars.
2. Advertise for the sale of your home in Newspapers, online, and in Real Estate sale pamphlets.
Note: You will have to pay the cost of the advertisement.
3. Contact a Real Estate Attorney
Now that you found your buyer and have negotiated the purchase price, it's time to contact your Real Estate Attorney. Your Real Estate Attorney will memorialize your sale agreement in a Contract and will represent you in closing the deal.
Selling your house may end up being one of the most important business transactions of your life. I therefore recommend hiring experienced business professionals so that it can be one of your most successful transactions!
Only Step: Decide if you want a Real Estate Broker.
Note: If you hire a broker you will incur the broker fee. If you don't hire a broker you run the risk of a less efficient sale process.
A. If you Elect to Use a Real Estate Broker
If you elect to use a Real Estate Broker you will gain the benefit of having someone do strong advertisement for the sale of your home with no additional cost to you. In addition, you will gain the benefit of the Broker's knowledge of the real estate market and will sell your house at a competitive price.
The Broker Fee
The Real Estate Broker is paid on commission; which means they are paid percentage of the proceeds from the sale of your home. The types of commission are as follows:
· "open listing" is one that authorizes the broker to find a buyer and, if successful, earn a commission of a certain percentage of the sales price.
· "exclusive agency" provides the same, except that the broker will earn the commission if any broker finds a buyer and an "exclusive right to sell" provides that the broker will earn a commission if the house is sold, regardless of who finds the buyer including the owner!
· Multiple Listing Services is an organization of many brokers that agree to share their listings with each other. This is in an attempt to provide the maximum exposure for the sale of a particular property.
Commission Rates
Commission Rates vary from the 6% - 7% "full commission rates" to as low as
2% "Discount rates".
Note: Lower commission rates are often offered in exchange for an "exclusive" listing, but this means that only one real estate broker will be seeking purchasers for you.
TIP: It is generally a good idea to contact your real estate attorney well in advance of selling your house and ask him/her to read the brokerage agreement and advise you before you sign it.
B. If you Elect to - The Do It Yourself Checklist
If you elect to sell your house without retaining a Broker, here is a checklist that you will find useful:
1. Determine the correct asking price.
Note: If you set the asking price too high, you will scare away potential buyers. If you set the asking price too low, you will ultimately sell your home for less than you could have.
Note: To determine the correct asking price, consider what other similar houses in your neighborhood have sold for and add 10% to your asking price.
Note: If you cannot determine what other houses in your neighborhood sold for, hire an appraiser to appraise your home. This will only cost a couple hundred dollars.
2. Advertise for the sale of your home in Newspapers, online, and in Real Estate sale pamphlets.
Note: You will have to pay the cost of the advertisement.
3. Contact a Real Estate Attorney
Now that you found your buyer and have negotiated the purchase price, it's time to contact your Real Estate Attorney. Your Real Estate Attorney will memorialize your sale agreement in a Contract and will represent you in closing the deal.
Selling your house may end up being one of the most important business transactions of your life. I therefore recommend hiring experienced business professionals so that it can be one of your most successful transactions!
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