All Forum Posts by: Dan Verteramo

I am selling a multifamily this month and have a few questions. I currently have a FHA loan due the 1st of the month. I have read that FHA does not prorate their payments. I want to close on 9/30 , but the buyer wants to close on 10/1.

1) Is it in my best interest to close on 9/30? Would I save an entire loan payment?

2) If I were to close on 10/1, would I have to collect all the rents for the buyer? I want to avoid this..

Any otjher information around closing dates in regards to FHA loans would be appreciated. Thanks!

Thanks everyone for the advice and different perspectives. Luckily I am in no time crunch and the property performs well. I can see the advantage of using a quality realtor, although the temptation to sell on my own is still there. Great advice from everyone, I truly appreciate it

What is a reasonable relator commission for residential real estate in Massachusetts? I may be relocating and have 2 properties to sell, one single family(my residence) and 1 investment 3 family. Would I be able to negotiate a lower commission if I were to list the 2 properties with the same brokerage company? The properties are in different towns within the same state and I am looking for creative ways to maximize profits. Currently, the listing agents are requesting 5% for each property. Is there a way to package this so that I could reduce commissions? Would it be reasonable to ask for 4% for each property?Any advice/direction would be appreciated.

Joel, you mentioned "You could have an OFF Market private showing agreement with the brokers/agents that say they have buyers in which you pay them the full commission etc. and that way you would not be stuck with them. "

This is of interest to me. Is this an industry accepted practice? Would most realtors understand and accept this type of arrangement and what do you think is a fair full commission for this type of arrangement, 3%, 4%?, 5%?

My feeling is that if the agent already has a buyer, and is not having to split the commission with another realtor, that they should be willing to accept a lower commission because they will "net" just as much commission(with no split) and have to spend less time marketing the property. If their buyer is truly "ready to go" then their would essentially be no marketing costs, no pictures, etc... I guess I am looking for a creative way to maximize my return when a potential listing agent claims to have a buyer lined up. I like Joan's comment of "show me the written offer", perhaps I'm being unreasonable, my skin is pretty thick so any candid responses are welcome.

Thanks Wayne, Couldn't I use a "Limited Service" of "Flat fee Agent" to get exposure to MLS? Wouldn't that would save me half of the commission and get the MLS exposure I need?

Hi All,
This is my first post, I appreciated any feedback and/or advice. I am considering listing my 3 family investment for sale. I have met with 3 realtors and their CMA's indicate a value of around 450K(Cap rate > 7%). Due to the location of the property(beach), I believe that the property will sell rather quickly if priced right. I would like to avoid using a listing agent to save on the commissions(they want 5%), as I could easily get a website up for advertisement and list the property on loopnet to see what happens. The realtors who I have worked with all claim they have a buyer for the property at the price I want and are constantly calling me. How do I navigate this situation? Here are some of the scenarios I have come up with, please let me know your thoughts:

Scenario 1:
Use a listing agent and pay the $22,500 commissions

Scenario 2:
List the property on loopnet and various other free/minimal cost websites. Create my own website and signage. Attempt to sell completely on my own with no buyer or sellers agents. I realize the buyer may want a small reduction due to the absence of realtors

Scenario 3:
List the property on loopnet and various other free/minimal cost websites. Create my own website and signage. Offer a commission to buyers agents(2-2.5%)

How would I handle conversations with the realtors I have already met and claim to have a buyer? Would I explain that I am listing the property myself but would offer them a 2% buyer’s agent fee? Or could I ask them to act as a transaction facilitator and give them a fee for that? I want to maximize profits and am looking for advice on what “Industry Accepted” strategy would best position me to sell this property in a way that preserves my reputation and compensates involved parties appropriately.

Any insight would be appreciated, thanks in advance for your replies.

-Dan