The Seller-Expense Method of Pricing a Property

Reblogger Joe Manausa
Real Estate Agent with Joe Manausa Real Estate 8508880888

This is just too good not to re-blog. Great article from Colleen McConnell.

Original content by Retired Notworking

riding a cow backwards

 

This strategy involves calculating all the seller's expenses and then basing the price on that, to ensure that the seller makes a profit, or at the very least, breaks even.  This method of pricing is often used by un-informed sellers when there is little or no equity in the home and the seller doesn't want a short sale on their credit and/or can't afford to bring money to closing.  

 

Typical expenses for sellers include:

  • Brokerage fee for both listing agent and buyer's agent
  • Documentary stamps on the deed
  • Pro-rated property taxes
  • WDO (wood destroying organism) inspection and repairs
  • Mortgage satisfaction and recording fee
  • Payoff of mortgage(s) and equity line(s) of credit
  • Home repairs

Unfortunately for the seller, this strategy probably won't work unless the price developed in this manner is roughly equivalent to or less than market value. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,163,163

Joe Manausa

Tallahassee Real Estate
Looking for Tallahassee Real Estate?
*
*
*
*
Spam prevention

Additional Information