Selling my first House

[Brat]

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.

 

[Lena]

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

 

[Nords]

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.

 

[CCdaCE]

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

 

[cute fuzzy bunny]

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%.

 

[nnkrealtor]

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

 

[CCdaCE]

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

 

[nnkrealtor]

CCDaCC:

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.

 

[cute fuzzy bunny]

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.

 

[CCdaCE]

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

 

[nnkrealtor]

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