So what do you guys think about realtors going away?
let's say you buy a house for $500,000 and live in it for 10 years and it goes up to $550,000 in value, a 10% gain on assets, a 100% gain on equity if you put $50,000 down to buy it. However, real estate agents are going to take 5%-6% of your sales price or $27,500-$33,000 in commissions when you go to sell your place. Add in transfer taxes, termite, closing costs, etc. and you are lucky to realize any gain at all!!! The real estate agents get hefty commissions, often for a few hours or days work, while you get next to nothing despite taking 10 years of capital risk (nobody refunds you a dime if your house goes down in value). It is the biggest rip off out there. I'm pretty sure that you can find a lawyer and an escrow company for a small flat fee to make sure things don't get SCREWED UP. Spoken like a true real estate agent..
you need to think about what you are saying before you say it. “I am pretty sure you can find an lawyer and an escrow company for a small flat fee to make sure things don’t get screwed up”. I am an attorney and realtor I can tell you that attorneys will quickly raise their fees and demand retainers for real estate transaction conducted without agents. Oh, your property didn’t appraise? I will need another retainer...oh, you want me to negotiate these inspection items?...I will need more money....oh, the buyer lost his job?...I am sorry but There is a balance remaining due. There is a reason why realtors get paid commissions. I suggest you view things in 10 year periods as your view of what they make or don’t make will change significantly (think 2008 through 2012)...oh, and the good realtors likely pay their own health insurance and don’t collect unemployment when the economy goes south like the average worker. In other words, they are self-employed and don’t have the safety net that most consumers have...finally, keeping deals alive is highly importtsnt as many people simply can’t handle criticism, over value their home or play nice with others...the profession however is much more detailed then that.
My conclusion. Don't become a realtor for houses. Be a realtor on big mansions or big commercial real estates.
They control the MLS (multiple listing service). No Internet startup has come close to replacing it.
People are comfortable buying a $10 book on the Internet. For a $200k-$1M house, you do want someone helping you.
April 15th, 2018 11:30am
Realtors got a mention in the book ‘Feakonomics’.
They get paid on commission so they want the highest price, right?
Getting the highest price requires waiting a few weeks.
To a realtor, fast turnover is key, they typically underprice to achieve this.
>paid on commission
This also is true for headhunters.
If you get a 25% commission for placing someone for $100k, that's $25k. If you negotiate hard and get the candidate $110k, that's only an extra $2.5k. Why risk $25k for an extra $2.5k?
Same with realtors. Why risk your whole commission for only 2% more? The incentive is to close the deal, not to negotiate.
April 15th, 2018 11:56am
What is your user name? It doesn't show in my browser.
You mention a situation where you undervalued your property by $5k and as a result got low quality offers. That is normal. The agent gave you a better valuation and once listed then it sold as normal.
There are bottom crawlers looking for properties sold by for example old sick people desperate to sell. The search algorithmically. If you list too low you attract these as buyers.
Selling instead at correct market price you get serious buyers. Serious buyers aren't looking at underpriced properties since they know most of those have severe undisclosed problems.
It looks like he's using emojis as his username.
April 15th, 2018 4:48pm
Anyway here's the deal.
If you're selling you should get a seller's agent since they'll list properly.
If you're buying you should get a buyer's agent since without this all the properties you look at will be listed and you'll simply end up paying the buyer's commission to the seller's agent, and you'll pay more than you would have otherwise.
There are rare exceptions - for advanced buyers who have done this a lot, and preferably who have or had a real estate license.
No former agent would think of selling as by-owner.
Now given this you also need to consider than 99% of agents are con artists and liars.
So you better be sure as hell your agent is someone like your own sister, so you can storm into her house and beat the fuck out of her when she scams you.
I'm using a series of the adorable poop emoji as my user name. It's to lessen the attacks by the accusational meth addled nighttime shitposter contingent like Jones and Bob Baden by providing no clear user identity.
Well you should reconsider that bullshit since that's some cutting edge 2018 browser shit that doesn't render in last year's models except as three square boxes.
I'm using Palemoon on Linux which has all kinds of UI quirks and I'm getting adorable little pudding swirls on my browser.
Anyway, about the real estate, I agree partially about too low asking price attracting scammers.
But I attribute the difference in success more to the fact that realtors act as sort of a human spam filter.
A guy offering $75K on a $100K market value house priced for sale (say) at $97K is either on meth, or is stupid, and probably won't qualify for a loan anyway. They're human garbage. Basically SPAM in the form of humans.
The meatspace equivalent of the Indians who leave heavily accented recorded messages that you are to appear before a magistrate for tax fraud, or the other Indians who want to help with the problems detected with your Windows at their security center.