Realtor vs. FSBO

[SLC Tortfeasor]

My 2 cents: it's easier to talk your selling agent's commission down if you're using the same agent to buy your next home.* That's what I just did last week.* He agreed to sell my house for 4% (3% going to the buyer's agent, 1% going to my agent), if I let him work as my buyer's agent for my next, more expensive house.*

I was not too pleased to discover some $400 worth of additional fees imposed by the brokerage firm in addition to the commissions that are paid to the agents ($200 on the sale of my house, and $200 on my purchase of the other house).* But, I figure I'm still getting an okay deal.* However, my house won't actually go on the market until next week, so something could still go wrong.*

[NYCGuy]

Real estate agents are scum. When I was a buyer they lied to me about boilers being replaced and about some amenities. When I sold my apartment here in NYC last spring, I interviewed four agents from three big name firms. I asked each why I should hire him or her and not one of the others. This one guy said I should hire him because if the apartment didn't sell immediately the others would start trying to get me to lower my price. Ok, fine I hired him, it was on the market for exactly 8 days before he suggested that I should lower the price. I didn't. It sold 2 days later for 13% above the list. I can handle that they are striclty going to pursue their own interests even at the expense of yours, but I hate when they talk to you like you are stupid.

That said, I am glad I used an agent for one reason. Here in New York there is no MLS. The brokers have something similar called a Rollex or Rolex. If you aren't in there you aren't going to get the traffic. If I had tried to sell it myself I would not have had 140 people show up at the two open houses, would not have had a bidding war, and would not have got the price I did.

Eventually RE agents will go the way of travel agents, replaced by the Internet. But, for now, at least here they own the quality buyers.

[MJ]

Just slightly off the topic. I have been in contract since Jan 12th and the proposed closing date passed a week ago. The buyer's lawyer has sent a letter waiving the mortgage contingency provision so the 10% deposit is mine. The buyer is putting down a hefty 42% cash at closing so his mortgage would be 58% of the purchase price. I was wondering how long should it take for a buyer to get a mortgage. I am losing a chunk of money in daily lost interest.

MJ

[nwsteve]

Quote:

Originally Posted by MJ I was wondering how long should it take for a buyer to get a mortgage. I am losing a chunk of money in daily lost interest.

MJ
Unless you have some unusual title issues to be cleared or your market is short of appraisers, closing this type of transaction should be no more than several weeks from all terms being met.
Note the ads for DiTech and Lending Tree.
I have recently done a deal with a major s & L and closed the deal in three weeks from application.
nwsteve

[cute fuzzy bunny]

If my wifes home sale was an example...young couple with middling credit, she has a decent but very unspectacular job as a secretary (no benefits), he worked in a gravel yard shovelling. They paid me extra and I gave them back some cash for a down payment. All they could afford was $1000 as a deposit, although they took a credit card advance to come up with an extra thousand. Took them about 10 days to get a loan.

[MJ]

Quote:

Originally Posted by nwsteve MJ Unless you have some unusual title issues to be cleared or your market is short of appraisers, closing this type of transaction should be no more than several weeks from all terms being met. Note the ads for DiTech and Lending Tree. I have recently done a deal with a major s & L and closed the deal in three weeks from application. nwsteve

The bank appraiser showed up almost Feb 1, 3 weeks after the contracts were signed and 4 weeks have past since then. I just spoke to the buyer and "he thinks" we could have a closing date in 2 weeks. That will make it 2 months since the signing. I was just wondering whether we were both subject to the bank's paper bureaucracy as he says or was he manipulating the mortgage process to delay the start his mortgage payments.

MJ

[Martha]

MJ, it does seem to be quite a delay. In my part of the country generally closing occurs shortly after the appraisal because it is the appraisers who tend to run behind. I would ask for a firm closing date and if they can't give you one, ask if you could talk to the lender about when it expects it can close.

[brewer12345]

Quote:

Originally Posted by MJ The bank appraiser showed up almost Feb 1, 3 weeks after the contracts were signed and 4 weeks have past since then. I just spoke to the buyer and "he thinks" we could have a closing date in 2 weeks. That will make it 2 months since the signing. I was just wondering whether we were both subject to the bank's paper bureaucracy as he says or was he manipulating the mortgage process to delay the start his mortgage payments. MJ

Hahahah, 2 months?! That's quick for my area. Fastest I ever managed was 3 months. My buddy is supposed to (finally) close on a co-op in Queens today (think good thoughts for him, please). They were in contract on Halloween - 4 months ago.

[unclemick]

7 days - post Katrina - I did threaten to kick the door in and move in after "one month in a motel room" - looked like keystone cops at some points in the process - but everybody bent over backwards and pulled it off.

Intial best guess - was one month minimum.

heh heh heh

[tryan]

Quote:

I was wondering how long should it take for a buyer to get a mortgage. I am losing a chunk of money in daily lost interest.

If the closing date was missed, the buyer should have asked for an extension - in writing - which you agree/disagree to (and sign). A new closing date is in the extension (no quess work on your part).

[cute fuzzy bunny]

Yep, you're "out of contract" at that stage. When that happens, I ask for them to pony up more deposit money, fulfill the contract, or I'll go call my backup bids. Seems to get them moving along a little faster.

[Nords]

Quote:

Originally Posted by MJ I was wondering how long should it take for a buyer to get a mortgage. I am losing a chunk of money in daily lost interest.

I understand that the deposit is yours, but if the buyer completes the deal then they really haven't paid any penalty for tying you up in the meantime.

Lemme make sure I understand this. In a world full of mortgage money sloshing around the Internet, with 0%-down interest-only variable-amortization loans being taken out by 14-year-olds from Missoula and other canines, your buyer can't get a loan? What would change in the next couple weeks that your buyer would suddenly be able to get a loan-- a parole hearing?!?

Your buyer may not get a mortgage until you get a new buyer. If you still have a valid contract from one of your competing buyers, and if you have the appropriate contingency clauses in your contract with this laggard buyer, then I'd pull the plug. Make them buy you out of the contingency, or at least compensate you for the amount of interest that you're losing, or else you'll find another buyer.

[SteveR]

I cannot recall ever taking more than 30 days from initial contract approval to closing. Most contracts have a clause that requires the buyer qualify for a loan in a certain number of days or they lose the deal. I have only had that happen once.

It would seem a fire needs to be lit under your buyer. It should not take more than 3-4 weeks tops to qualify and get a loan approved. I did it in 2 weeks once so I know it can be done pretty darn fast when there is some motivation.


I did a "bargin basement" realtor sale a few years ago. The realtor was an attorney and I should have known better (no offence intended to our resident lawyers) because he nit picked every aspect of the whole process to a point that he was running off potential buyers. I was very near firing him when he finally came up with a good buyer at a fair price. I would never use him again but would go the "bargin" realtor route. It ended up saving me about 2% on the deal which was a nice chunk of change for us. Just be careful who you hire and make sure there is an "out" clause in the contract in case your partnership is less than stellar.

[tryan]

Longest closing process I can remember was 5 months. Included the buyer triing 3 different lenders, death in the family , blah, blah blah. Once told the realtor to try the 2 other offers but - of course - they had already found other properties.

The buyer has more to loose than you do, sit tight it'll close.

[MJ]

I just got off the phone with the buyer. We actually have at least on the surface a good and civil relationalship. When I called him and asked him to put pressure on the bank because I might back out of the deal, he then asked me to call my lawyer to find out which days he would be available in the coming 2 weeks. I again reminded him that I really don't want to wait another 2 weeks. So I have a sneaky suspension that he may have been doing some delaying on his on. Now I hope the lawyers don't delay my closing due to prior commitments.

Thanks for the advice.

MJ

[Retire Soon]

We'll be placing our San Diego home on the market in April.* I've interviewed only one real estate agent so far. From reading this thread, it looks like the commission is negotiable. I wonder if anyone knows what the normal or average commision that someone would expect to pay in the San Diego area. Also, someone mentioned not to hire a "rock star."* I take this to mean a high producing agent.* The agent that I spoke to on Thursday has sold more listings than anyone in my neighborhood.* Is this the type of listing agent I want to avoid?* ** Also, my cousin's husband is a real estate agent in Fallbrook, which is about 60 miles from where we live.* He'd probably give us a good deal if I asked him.* Is it necessarily better to deal with an agent who is located close to the property being listed?* I would appreciate any input or advice on these issues.

Thank You,

Retire Soon

[riskadverse]

3% to the buyer's agent, 3% to the seller's agent is standard for San Diego. There are some discount brokers around, and lots of Help U Sell type of firms. Family agents are fairly common, some firms have hundreds of agents who sell one house every year or two. As a seller, I would personally hire the rock star, but with a short exclusive listing.

[Rich_by_the_Bay]

Quote:

Originally Posted by riskaverse 3% to the buyer's agent, 3% to the seller's agent is standard for San Diego. There are some discount brokers around, and lots of Help U Sell type of firms. Family agents are fairly common, some firms have hundreds of agents who sell one house every year or two.

Maybe your area is different, but I believe that should be 3% to the buyer's BROKER and 3% to the seller's BROKER. The agent often gets only a portion of that 3%. Doesn't matter much if you are the buyer or seller (6% is 6%) but the agent does NOT get all of that in many cases. If an AGENT does get the full 3% from his or her side, it is usually be cause they have already met a sizable quota which they split with the BROKER for that year.

Small point, but not if your wife in an agent .

[Brat]

Last I heard houses were selling like hotcakes in San Diego.* What services do you expect from your Broker??

If I thought I needed a Broker I would list with one with good results in my neighborhood (they should know the comps at least).* Ask for a list of their sales this last year and contact the sellers to verify that the Broker earned their commission.*

[califdreamer]

Quote:

Originally Posted by Brat Last I heard houses were selling like hotcakes in San Diego.

Things have cooled since the frenzy of '04 when indeed houses in SD were selling like hotcakes. Inventory is up, though not out of balance, and houses are on the market a little longer. It's not a buyer's market yet, more like a toss-up between sellers and buyers. All of 2005's appreciation took place in the first half of the year. Market prices have been pretty flat since summer of '05. Still a good time to sell and move equity gains elsewhere.