4 ms·
If that's the case, the savings are not 'spent' but are simply invested in the house. They should be able to sell the house for the net value (market value min
by lottin 2y ago
If that's the case, the savings are not 'spent' but are simply invested in the house. They should be able to sell the house for the net value (market value minus mortgage outstanding) which should be roughly equal to the down payment.
- NewJazz 2y agoHigh transaction fees on sales. Typically at least 5% in US, not sure about Canada. Also don't forget taxes, insurance, mortgage interest needs to get paid while house is in your hands. Most mortgages have lots of interest during the first few years.
- MarcelOlsz 2y ago5% for me + various breakage fees and other minor costs.
- NewJazz 2y agoCan you imagine if buyers and sellers only had to pay, say 1% each? The whole market would become a lot more liquid. But nah, brokers are essential and have your interests at heart.
- s1artibartfast 2y agoThey absolutely aren't required and fees are negotiable.
- MarcelOlsz 2y agoYeah sure but then nobody will ever see your property for sale unless they drive by it. Purplebricks also shut down in Canada.
- s1artibartfast 2y agoWhat do you mean? Im not sure about Canada, but Private individuals can list on redfin and Zillow in the US. MLS posting must be from a broker, but you can hire one flat rate upload your listing
- MarcelOlsz 2y agoYou think I should instead list on redfin/zillow instead? Never considered it before. Do you know of any others?
- NewJazz 2y agoLol yeah. Biggest joke ever.
- throwaway2037 2y agoThis issue is frequently raised on HN. If estate agents only got 1% of sales, then could not even cover the cost of an office and (usually) a car and pay them self a middle class wage. Most people buy one or two houses in their entire life. It makes sense to have an expert to guide them through the process.