calNgary Posted September 23, 2016 Share Posted September 23, 2016 I dont think you necessarily need to move to a worse area, infact i think thats a load of crock. You could move to an area thats currently being planned for development. We bought acreage nearly 10 years ago in an area with schools close by and one shop, now its becoming a massive estate (soon to be master planned city), there's lots of shops,loads of child care options, Woolys on its way, railway station 15 mins drive away etc and house prices are rising fast.. We could easily cash in, move a tad further rural again (but still be within 25 mins of everything and wait for the urban sprawl / price rises to catch us up again,, Cal x Quote Link to comment Share on other sites More sharing options...
Perthbum Posted September 23, 2016 Share Posted September 23, 2016 The problem is the $40k or so you'd have to pay the real estate agent then the two lots of stamp duty to buy the new properties.I'm looking at Purple Bricks at the moment. Real estate agent fees of $4-5k seem too good to be true. Anyone used them in the UK? 40K ? estate agents around stratford usually offer a straight fee all in between 1 and 2k Quote Link to comment Share on other sites More sharing options...
bristolman Posted September 23, 2016 Share Posted September 23, 2016 They take about 2%. That's insane, is there no upper limit ? 40k would be a $2,000,000 house. We paid a fixed rate when sold ours but it was still about $6000. Quote Link to comment Share on other sites More sharing options...
Parley Posted September 23, 2016 Author Share Posted September 23, 2016 A percentage is probably better though because then they have an incentive to get you the best price. If it is a fixed fee they won't work hard to get you a good price. Quote Link to comment Share on other sites More sharing options...
bristolman Posted September 23, 2016 Share Posted September 23, 2016 I certainly wouldn't use an agent that took 2%, it's money for practically nothing. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2016 Share Posted September 23, 2016 40K ? estate agents around stratford usually offer a straight fee all in between 1 and 2k 1-2k? They must have to sell loads of houses to have any kind of lifestyle. Would need to sell more than 1 a week after the agency takes its cut just to hit average wage. Quote Link to comment Share on other sites More sharing options...
Parley Posted September 23, 2016 Author Share Posted September 23, 2016 There is a reason why all the estate agents drive Jaguars and Range Rovers here. Quote Link to comment Share on other sites More sharing options...
bristolman Posted September 23, 2016 Share Posted September 23, 2016 Yes they rip the owners off. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2016 Share Posted September 23, 2016 There is a reason why all the estate agents drive Jaguars and Range Rovers here. Appearances can be deceiving. That's what they want people to think. Many probably don't even own a house. Quote Link to comment Share on other sites More sharing options...
Melbpom Posted September 23, 2016 Share Posted September 23, 2016 40K ? estate agents around stratford usually offer a straight fee all in between 1 and 2k Unfortunately real estate agents charge between 1.5% to 3% of the sales price and I think that advertising is an extra on top of that. That's why new entrants offering a fixed fee are worth considering. The sales process here seems to be more pro active, with the agent arranging open days and making follow up calls. It's certainly a lot quicker to sell possibly due to REAs' self interest. Whether this equates to $k's worth of work I don't know. I guess they've got their overheads. A similar principle is applied to rates, they are worked out on a % of the council's valuation of your property. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2016 Share Posted September 23, 2016 The problem is the $40k or so you'd have to pay the real estate agent then the two lots of stamp duty to buy the new properties.I'm looking at Purple Bricks at the moment. Real estate agent fees of $4-5k seem too good to be true. Anyone used them in the UK? Not personally but they are selling a lot of houses around where I live - when we were selling up in Perth we were tempted to go with an online Estate Agency and were strongly advised not to by a friend who had tried the same based on her experience. The reality is a budget estate agent gives out a message to buyers - they know you aren't paying as much in fees so offers are lower because of that and if you are scrimping on the fees you must be desperate to sell so again lower the offers accordingly. At the end of the day it doesn't matter how much you sell the property for or how much the fees are all that matters is the amount transferred to your bank at the end of the transaction. If an estate agent gets you $50k more but charges you $40k for doing so you are still $10k better off after paying their fees. The friend I mentioned advertised with an online agent and did not get a buyer, they went with a traditional agent who increased the asking price by $15k - they thought he was nuts but went with the advice - it sold for $18k more! Quote Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2016 Share Posted September 23, 2016 Can any real estate gurus tell me how you capture the value if your home has gone up in value ? Is the only way to move to a cheaper suburb further out of the city ? Release equity to cover the cost of buying a second/third/fourth etc. property to rent out - only the buying costs e.g. deposit, stamp duty etc. as it is better tax wise for any mortgage to be on your residential property. Assuming capital appreciation is greater than the mortgage rate then you will increase the value of your assets, of course there is risk involved and you should be thinking in terms of at least a 10 year plan not making a quick buck. I have two properties - a small three bed that was rented out (my dad lives in now but that was personal circumstance) and our large family home. The one my dad lives in we own outright and have a small mortgage on the other. They are 5 mins from each other so I expect that in the fullness of time the family home will be sold and my husband and I will move into the smaller property releasing equity for retirement and maybe even a holiday home (France? Highlands? Australia? Okay maybe not Australia but who knows if our son was to settle there!) I'm 5-10 years off retirement so we may even buy another property depending on how things go or buy the holiday property sooner (tax law changes in the UK make that more appealing than a 'buy to let') Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted September 23, 2016 Share Posted September 23, 2016 And when you sell it it will be worth a lot more in 5 years time than you sold it for but the smaller house you bought will not have increased that much so you will infact be worse off. You appear as any people on here that the only way is up. Afraid it's not and trading in when on a high makes perfect sense. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted September 23, 2016 Share Posted September 23, 2016 There is a reason why all the estate agents drive Jaguars and Range Rovers here. Often show over substance. Quote Link to comment Share on other sites More sharing options...
bunbury61 Posted September 23, 2016 Share Posted September 23, 2016 40K ? estate agents around stratford usually offer a straight fee all in between 1 and 2k Just sold ours in Solihull sept 2016 ,I know the real esyate owner well enough .....the actual rate is £3500 ,he has done it for £2500 ....i should imagine Stratford is similar ,if not more expensive . Quote Link to comment Share on other sites More sharing options...
bunbury61 Posted September 23, 2016 Share Posted September 23, 2016 There is a reason why all the estate agents drive Jaguars and Range Rovers here. Trust me ...tbey do extremely well here ....what do you think is going on in England ?...do you think we are all living on bread. and dripping ? Everyone I know is busy ...the Aussies call it gangbusters' ?...is that right ? Quote Link to comment Share on other sites More sharing options...
Melbpom Posted September 23, 2016 Share Posted September 23, 2016 The reality is a budget estate agent gives out a message to buyers - they know you aren't paying as much in fees so offers are lower because of that and if you are scrimping on the fees you must be desperate to sell so again lower the offers accordingly. At the end of the day it doesn't matter how much you sell the property for or how much the fees are all that matters is the amount transferred to your bank at the end of the transaction. Yes I agree with what you're saying but I thought that if a property was going to be auctioned it would find it's level. There are a couple of properties starting to be listed with the agent I named before and I'm planning to attend the open houses to see if I like the agents and their style. Maybe if they are trying to break into a market they will work harder. I've found cost doesn't necessarily mean quality. Worth a look at least. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted September 25, 2016 Share Posted September 25, 2016 I certainly wouldn't use an agent that took 2%, it's money for practically nothing. I wish our agents had of been 2% most wanted 3% and we managed to knock ours down to 2.75%, he was brilliant though and got us on the local news and front page of the paper. He was worth it. Other agents don't seem to do anything for their money. Although saying that you have to remember that they work hard for it unlike the UK system where you had to do your own OFI and agents didn't deal with the contracts etc. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted September 25, 2016 Share Posted September 25, 2016 I forgot to mention the advertising costs are on top of that percentage. Ours was $900 for brochures and the sign. Then we had to pay $1349 for a month to go on the Internet. The newspaper was the killer, from $2500 - $9500 we didn't choose that option but we were informed by numerous people that by having your property in the paper you have more chance of getting a lot more money for your house. I'm not sure how that works, maybe because it's the older generation who have the money and they don't use the Internet as much. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.