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    Originally posted by BertramBass View Post
    I could explain running a profitable business to you, but you would end up chewing on the crayons while scratching your head...
    Do you people really not understand? You can't just add 6% to "market value" Holy moly you guys make me want to drink whiskey.

    Comment


      Originally posted by RiverRat1 View Post
      Do you people really not understand? You can't just add 6% to "market value" Holy moly you guys make me want to drink whiskey.
      If 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.

      Comment


        Originally posted by BertramBass View Post
        I could explain running a profitable business to you, but you would end up chewing on the crayons while scratching your head...
        Lol. You're way out over your skis here bud. Trust me. ha ha ha

        Comment


          Originally posted by RiverRat1 View Post
          Do you people really not understand? You can't just add 6% to "market value" Holy moly you guys make me want to drink whiskey.
          Yes, I do really understand.

          Comment


            Originally posted by BertramBass View Post
            If 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.
            Market value is what someone is willing to pay. I think a couple people's point is you can not add 6% to market value and expect the home to sell in 24-48 hours.

            Comment


              Originally posted by ecallarman View Post
              Yes, I do really understand.
              Is 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.

              Comment


                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.

                Comment


                  Originally posted by BertramBass View Post
                  If 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.
                  What would happen to this system in a non-rising market?

                  Comment


                    Originally posted by RiverRat1 View Post
                    Is 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.
                    I am not sure what a magic number would be. Heck I am not even taking a stance for or against a realtor. I was only trying convey the difference between appraised values and current market values, and that current market value is whatever someone is willing to pay; Above or below appraised value.

                    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.

                    Comment


                      Originally posted by Birddog66 View Post
                      What would happen to this system in a non-rising market?
                      I do not build spec houses in a declining or flat market. I am too conservative business wise. I wait for a rise 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
                      Last edited by BertramBass; 10-15-2018, 01:01 PM.

                      Comment


                        Originally posted by BertramBass View Post
                        I 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
                        Sounds like a sound practice to me. JMO.

                        Comment


                          Originally posted by Birddog66 View Post
                          What would happen to this system in a non-rising market?
                          sales would be slow, and then you negotiate.

                          Comment


                            How about we all have a shot of whiskey. Whoever is buying be sure to leave a good 10%-20% tip.
                            Attached Files

                            Comment


                              Originally posted by Antlers86 View Post
                              How about we all have a shot of whiskey. Whoever is buying be sure to leave a good 10%-20% tip.
                              The tip is already built into the price..

                              Agreed.

                              Comment


                                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.

                                Comment

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