Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Selling my first House
Old 05-31-2006, 07:33 AM   #21
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 95
Re: Selling my first House

Quote:
If the listing realtor fails to present all offers they can have legal problems, big time!

That is 100% right. Listing agents must present all offer to the seller IN A TIMELY MANNER.
__________________

__________________
nnkrealtor is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Selling my first House
Old 05-31-2006, 10:22 AM   #22
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Selling my first House

Quote:
Originally Posted by Canadian FIRE

So I'm only paying about 4.8%.* I'm* happy with that.

The agent thought an acceptable range for the place would be 169K to 174K.* Since I'm in a hurry to sell I went with 169,900 as list price.*
Someone REALLY has to explain to me why the agent(s) need to make EIGHT THOUSAND DOLLARS to sell a house. What magical services are they offering other than walking someone through a house. When I bought my house, it was beyond me how realtors can command these fees. Mine made several hundred/hr. It was beyond me why.

-CC
__________________

__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 10:30 AM   #23
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 54
Re: Selling my first House

Vic, I should clarify. *The fees are 6% on the first 100,000 and 3% on the rest. *If another agent brings in a buyer they get half. *I averaged it out to get the 4.8% and assumed a selling price of 165K.

So we had two showings last night. *One at 6pm and the other at 6:30pm. *I got a call from the agent at 8:36pm. *Both showings went well and they placed offers. *We had a little bidding war and I got a final offer of $177K if I included my brand new fridge and stove (they cost less than 2K). *So I got over my list by 7K and had an offer in 3 hours and 36 mintues from the first showing. *Taking out my current mortage and the agent fees (about 4.7% overall) I should net about 60K on the sale. *Talk about your good investments!! *I put down 8K and dropped in 15K over the last two years and I'm still making 37K in pure profit.

I feel I got my money's worth from the agent. I thought my place would go for 150K, he got me a extra 22K.

Thanks for all your suport and ideas. *You guys really helped me keep my head on my shoulders during all of this.

CF
__________________
Warming up to FIRE while trying to avoid the cold!
Canadian FIRE is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:01 AM   #24
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Selling my first House

Quote:
Originally Posted by CCdaCE
Someone REALLY has to explain to me why the agent(s) need to make EIGHT THOUSAND DOLLARS to sell a house.* What magical services are they offering other than walking someone through a house.* When I bought my house, it was beyond me how realtors can command these fees.* *Mine made several hundred/hr.* It was beyond me why.
Shucks, on Oahu the gross take on a median-priced home, $600K, is $48K. If the house sells on the first Sunday afternoon then technically the salary rises to several thousand an hour.

Well, the short answer is "They don't." Look at the rise of the fixed-price realtors like Help-U-Sell & "Assist2Sell".

The long answer is that they don't make the money for selling the house. They make the money by being ready to keep the entire deal from getting incredibly $#@%ed up by buyers & sellers who don't know what they're doing. If you're standing around trying to find something for your realtor to do then you don't need one.

But it's like fixing your car or cutting your hair or doing your own surgery. If you could diagnose the problem, acquire the parts and the special tools, and find the time then you wouldn't need those "overpaid" professionals either.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:18 AM   #25
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 54
Re: Selling my first House

Quote:
Originally Posted by Nords
But it's like fixing your car or cutting your hair or doing your own surgery. If you could diagnose the problem, acquire the parts and the special tools, and find the time then you wouldn't need those "overpaid" professionals either.
Nords - Overpaid professionals. You mean like engineers! I current get paid a gross amount of money to tell dumb buyers that the product is fine and its the operator who screwed things up.

It's only overpriced if you can do it yourself and still pay someone else.

CF
__________________
Warming up to FIRE while trying to avoid the cold!
Canadian FIRE is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:28 AM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Re: Selling my first House

I think realtors' 6% is excessive too, but...

Buyer's Realtor: The good ones vet potential buyers so that no one's time is wasted. They educate many buyers on the home purchasing process, mortgages, neighborhoods. Showing houses is not risk free for either the realtor or the seller - they try to screen out scumbags.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:36 AM   #27
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 60
Re: Selling my first House

Nords,

the problem is that many many many realtors don't know what they are doing either.

When I started doing RE investing, I decide to take a course that is given to people who want to get a RE license. What a joke. Anyone who is over 18 (may be 21) can get a RE license and the whole course was like 64 hrs. You have to be a complete idiot to fail that licensing test.

So now you have a young thing who can only see $$$ when he sees you, and is trying to help you to make one of the biggest money decisions.

I think there is something wrong with that system. But... I could be wrong, I've been wrong before :

Lena





__________________
Lena is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:44 AM   #28
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Selling my first House

Quote:
Originally Posted by Lena
the problem is that many many many realtors don't know what they are doing either.
Preaching to the choir!

I paid a realtor in 1986 to sell my home because I was three time zones away and wouldn't be able to take care of it myself.

Haven't paid one since. We're diehard FSBOs. But we do know a couple smart/experienced realtors who may someday help us bird-dog an underpriced rental condo... if they don't buy it first.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 11:46 AM   #29
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Selling my first House

Quote:
Originally Posted by Canadian FIRE

It's only overpriced if you can do it yourself and still pay someone else.

CF
Maybe that's my problem. * I'm a DIY type of guy when it comes to things I see as simple. *I see most things as overpriced. *I'm sure there's a million things that can go wrong, but since none of them happened to me during my home buying experience... I am not aware of all the potential pitfalls and disasters.

Engineers are overpaid. *"I are one." *But, then again, there are a lot of idiots out there and I feel I should be compensated as an engineer since not everyone has a working brain.

/end cynicism

Maybe I need to start a business or something, and see how the real world works.

Nords. Post your "10 easy steps to FSBO your house" if you're bored. I'm thinkin' of dumpin' mine in the next year or two.



-CC

__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 12:11 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Selling my first House

Here in California, I think the ratio is something like 1 "realtor" for every 52 people.

Obviously some of them arent going to be very good.

Seems to me some 'buyers agents' solve the problem of not presenting an offer by simply not showing properties that pay sub 3%.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 01:11 PM   #31
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 95
Re: Selling my first House

Quote:
Someone REALLY has to explain to me why the agent(s) need to make EIGHT THOUSAND DOLLARS to sell a house
CCdaCE,

The breakdown is typicaly like this.

Say for simplicity sake.

House sells for 200,000
Typical 6% Commission 12,000 sound like a nice chunk of change huh?...well...
Say I have the house listed and an agent from down the street sells it.
6000 per agency

so... 6000
- my brokers cut 2400 anwhere from 25%-50%
- advertising expenses anywhere from 200-1000 (say 450)
-Taxes (30%) $1593
I bring home 3,717

then since agents are independant contractors not employees they don't have benifets. so take my health insurance out of that also
and
no 401k

Its not all roses. agents have to sell alot of property to make a good income.

If the house was only on the market for 1 day well yeah thats a hell of a days pay but you have to also count the 30-45 more days that that deal will take to close an agents work really dosn't start until you have a contract and then they have to keep thing from falling apart 50 times before closing.

now I will admit some agent's arn't worth what they get paid but don't lump all of us in with a few bad apples.

I hope you can see my point
__________________
nnkrealtor is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 02:16 PM   #32
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Selling my first House

nnkrealtor. Thanks for your informative response. So, if you sold one house a month, how many hours do you think it would take? Using your numbers, that realtor would make $40k.

I'm not complaining that realtors are bums, or am I?

I'm just saying I didn't see how the 30 minutes I spent with them (per house) didn't seem to justify thousands of dollars of their "services". Say I looked at 10 houses at 30 min ea. That's 5 hours, and I paid $3k or something (sellers picked up half). Hell of an hourly wage if you just base it on our time together.

I'm pondering what else goes on behind the scenes - and you helped explain some of costs.

I was wondering what you are talking about when "they have to keep things from falling apart 50 times before closing".

Thanks for your insight.

-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 02:42 PM   #33
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 95
Re: Selling my first House


CCDaCC:

Quote:
I was wondering what you are talking about when "they have to keep things from falling apart 50 times before closing".
Agents have to argue with lenders and appraisers, and even their own unreasonable clients sometimes. Get surveys, water test, septic test, termite inspections lined up. set up appointments for home inspections and in many cases meet the inspectors at the property to answer any questions. of all of these lenders tend to be the biggest pain. If their client wants a zoning variance then agents will go the the county meetings and help with the presentation.

I could go on but I have 3 houses to show this afternoon. hahaha.

To ballpark it. If a seller has a good agent all the seller should have to do (aside from making the house presentable) is sign a few papers and make the final dicision on offers. and If a buyer has a good agent all they should have to to is decide on a house to buy,sign some papers, talk to the lender and closing company a couple of times and bring the check to closing.

Did I understand you right? You as a buyer had to pay some of the commission?
That dosn't happen here in Va. Seller pays all of it unless some other agreement has previously been made.
__________________
nnkrealtor is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 02:44 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Selling my first House

In some states you can (or have to) get your own buyers agent and pay them a fee to show homes and help you make an offer. They arent compensated by the seller.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Selling my first House
Old 05-31-2006, 02:48 PM   #35
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Selling my first House

Yeah, it was a funny deal they tried to sneak in, I think.* The sellers ended up giving most of it back in other forms.

Thanks for the clarification, by the way.

-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Selling my first House
Old 06-01-2006, 07:40 AM   #36
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 95
Re: Selling my first House

No problem,
I know a lot of agents get a bad rap. Some deserve it but most do not.
Have a good day.
__________________

__________________
nnkrealtor is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Buy my first house? Deetso Young Dreamers 21 02-22-2007 02:33 PM
Own a house versus renting; expenses obryanjf FIRE and Money 42 09-23-2006 05:01 PM
HELP! Willpower weakening! Yearning to buy barely-affordable luxury house! SLC Tortfeasor Young Dreamers 64 02-02-2006 02:21 PM
could use advice on the rental house Caroline FIRE and Money 10 07-26-2005 06:20 PM
A House, not a Home Martha Other topics 41 04-12-2005 05:34 AM

 

 
All times are GMT -6. The time now is 09:58 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.