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OwenChristensen
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# Posted: 29 Jul 2012 11:04
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I'm so broke I might need to sell some. I need advice. I think I have the most private land in MN. I want more for it than a real estate co. thinks I can get. Do they keep money over their percentage , if they sell for more than I want? It seems that there's more to what they're saying. They keep asking what do I want to get out of it? I was thinking what the difference, you'll get your 5%.
I had this happen with a boat I bought. I bought it directly from the owner and we both offered to pay half the 5%, the broker got mad. I can olny figure he wanted more. Never did figure it out.
Owen
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Martian
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# Posted: 29 Jul 2012 11:44 - Edited by: Martian
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Real estate agents only make money when a property sells; meanwhile, their cost of listing the property continue for as long as its listed. That's why they want to place a price on the property that will enable them to sell it rather quickly. They will take your desired net (if realistic) and add their percentage to arrive at the listing price. Anything received over that price is gravy for you and them since their commission is based on a percentage of sale price.
If you have the time, list it yourself. I always carry the loan unless I need all the cash up front. That way, I can list it for less, but make the same or more from the interest charged. Get a large down payment which you get to keep, along with any payments and improvements made, if the buyer defaults. Assuming the land is vacant, there isn't a whole lot they can do to destroy it; besides, as the mortgage holder, you get to inspect the property periodically to make sure they aren't doing something detrimental. Ideally, you can sell the same piece of property three or four times.
On that boat deal, if the broker was connected with a finance company, he may have lost a loan origination fee/kickback since you and the owner did the deal. That's just a guess, but finance companies do pay brokers for referals.
Tom
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OwenChristensen
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# Posted: 29 Jul 2012 13:25
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Thanks, Tom. I do have a lot to loose as it is a 50 year old pine plantation.
Owen
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PA_Bound
Member
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# Posted: 29 Jul 2012 15:20
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Real Estate companies and agents aren't necessarily bad. They only get their 5 or 6% of whatever the selling price is (unless you negotiate something custom, which can also be done). Before you sign the listing contract ask if they have "spiffs" or other incentives, rewards or referal bonus's for selling your property or steering business to certain entities. These are not inherently bad, but good to be aware of as income will often drive (and explain) behavior.
The biggest advantage of using a real estate agent is their access to the MLS service. This makes your property searchable by every other realestate agent, and even individuals searching through real estate company websites. This is how I found my property- using the property search function in Coldwell Banker's website. I wasn't even a CB customer at the time.
While you can get access to the MLS by using certain "FSBO" services, you may still have to pay a percentage if the buyer locates your property via a real estate agent of their own. And, of course, a real estate agent will help with showing the property, answering questions, providing information on comparable properties for sale in the area (so you know your competition) and everything else they do.
But you can do all this yourself, all it takes is time and effort.
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Martian
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# Posted: 29 Jul 2012 16:26
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Quoting: OwenChristensen I do have a lot to loose as it is a 50 year old pine plantation.
So, your land is not the main value; the trees are? You may be better off to sell the trees, and then sell the land if you still need/want to.
Tom
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MtnDon
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# Posted: 29 Jul 2012 16:30
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I wish you the best of luck; it is not an ideal time to be needing to sell properties, IMO. We've sold properties by ourselves and it was slow going. We have a broker we have a relationship with and they earn their %. They have worked very hard for us (and themselves). It wasn't their fault the last property we tried selling did not sell for what we wanted; it's the present market. We gave it 90 days then pulled the plug and rented it out again.
There is a clause in most broker agreements that you can not sell it to someone who saw the property when it is being offered by the broker for a period of time after the agreement is over/cancelled/whatever, without owing the broker their percentage.. Something like 60 ot 90 days, I forget what it is. That's fair; it keeps people from cancelling the agreement then selling without paying the broker their due amount.
If you sell it yourself I believe you owe it to yourself to seek out a lawyer who knows real estate deals. Unless you are a legal expert you can screw yourself.
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OwenChristensen
Member
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# Posted: 29 Jul 2012 20:37
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Thanks, I'm not sure what I'm going to do. I'm trying to win the lottery now.
Owen
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neb
Member
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# Posted: 29 Jul 2012 22:46 - Edited by: neb
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How much land do you have Owen? I just sold some land in Jan. and I did know the guy from western part of the state so thing did go well. No middle man needed just sell it yourself and no % to pay!!! We went out and kicked the weeds around I boot marked the corners in the dirt and told him what I wanted. He thought about a min. and we shook hands and it was a done in less then one week. I do know this doesn't always happen that easy but people can make it easy or hard. I had the old abstract and title insurance also the recorded map of the land with legals. We didn't all the those documents and he was good with that. He trusted me that nothing had changed in the 18 years I owned that land. The one thing you want to remember is capital gains. Please check in to this with a pro in that field. If you are going to it do it this year!! Obama wants to raise capital gains to 20% next year and it will happen!!!! So getter done if you plan on selling!!!
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OwenChristensen
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# Posted: 30 Jul 2012 08:24
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I was told you can do a one time sale of realestate without tax. Is that true?
I have 120 acres, cabin, guest cabin, three season screenhouse, sauna, two outhouses and a shed, three ponds, 100,000 pines and spruce 80 to 90' high. It's all 1/4 mile back for a gravel road with no power. High ground access from road with 1/2 mile swamps on each side and 7 miles of spruce swamp to the rear with hardwood islands.
Owen
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MtnDon
Member
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# Posted: 30 Jul 2012 10:09
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There is an exemption for a principal residence. There is a limit of $250,000 profit for a single person, double that for being married and neither of you ever having used the exemption. It used to be a one time use, but now (since 1997) you can use it again. You have to live in the home for 2 of the 5 years prior to the sale. Does not apply to recreational properties unless you live there for 2 years. Not applicable to rental properties, unless you move in for 2 years before selling.
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neb
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# Posted: 30 Jul 2012 20:06
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Owen it looks like MtDon has it covered. That is a nice junk of land, You would get top dollar for it but do some research on tax laws. And if I where you I would sell it yourself. Have an Attn. do some of the buy sell and have buyer pay for expenses occured from the deal. That is how I did mine and if they don't agree just move on to the next buyer. I would think yo would have no prblem selling that kind of land. Good luck!!!!
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OwenChristensen
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# Posted: 30 Jul 2012 20:31
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Thanks, I'm not sure I can. Close to the heart. Time will tell. Our home is like a cabin too. Gardens , horses, privacy, woods, etc. I have 7 1/2 acres and neighbors only on one side and I like them all. I possibly could sell the cabin. My wife won't move to the cabin, or that's what I'd do..
Owen
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BlaineHill
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# Posted: 31 Jul 2012 18:53
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Try selling it yourself on: http://www.landsofminnesota.com/minnesota/
I sold a parcel on a sister site, landsofohio.com. I think they charged me about $35/month for the ad and I had it sold in 2 months. No other fees.
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Sustianusfarm
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# Posted: 31 Jul 2012 23:17
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Thin out the trees Owen!! I just did mine and they were much smaller than yours... I got $1000/12 cord load! Just thin the trees don't clearcut... You will be amazed at how much healthier your forest will become!
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OwenChristensen
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# Posted: 1 Aug 2012 01:23 - Edited by: OwenChristensen
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I thinned them in about 2000. I took half. That was a first time and was quite late. Tall and spindely. The next couple years lead to quite a bit of ice and wind damage. All's good now. I take a few cords each year for saw logs.
Owen
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