Q: My parents recently passed away, we are in the process of selling their home to a family member, see more in details

A: Deduct 6% of the commission from the sales price. When you say "private" I believe you are implying that you want to sell the home FSBO or "For Sale By Owner." If that is the case, then there should not be a commission to any agent or at the most a 3% commission to the "procuring agent." Also, if both parents have a passed during the sales process, you will need to make sure that you or family member still has the authority to sell the property , otherwise it will need to be probated. Hope this helps. David

A: There is not a definite answer to this question for three reasons. First, an appraisal is an opinion as to the value. It is one piece of evidence as to the value. There is other evidence you can consider, such as the assessed value, which is the tax assessor's opinion as to the value. I would put more emphasis on a licensed appraiser's value, but if you had an appraisal done you will note that the appraiser issues a report, not simply a figure. The report shows you what evidence the appraiser considered so that you can evaluate that evidence for yourself.

Second, the value added by a real estate broker is debatable. Strictly speaking, a listing of a property with a broker adds nothing to the value of the property. Rather, a broker increases the exposure of the property to the market and provides services in connection with the sale, helping to ensure that the seller gets the best price. Generally, a seller is willing to accept a little less in a FSBO or "for sale by owner" transaction and the buyer expects to pay a little less. Commissions are generally 6%, but a FSBO price is not a full 6% less generally.

Third, the sale price is ultimately what the buyer and seller agree upon, and that principle should ultimately determine your sale price unless there is something else governing the principles that you are inquiring about.

A: An "appraisal' is simply one person's opinion of the value based on the market and 'similar' sales. It is NOT that precise. The ACTUAL value is what a willing buyer and a willing unrelated seller agree is a fair price. Appraisals are GUIDANCE as to what might be considered 'reasonable'. If you want to sell for less for whatever reason, or if you believe it is actually worth more and don't want to accept that appraised value, that is up to you as owner.

Think of it this way. If you look at 'carfax' and it says the model you're looking at is 'worth' $15,000 but the dealer is asking $14,000, what is the car going to sell for?