Commission or no Commission for Relator that did NOTHING

[28079]

Originally Posted by LarryBGood

Okay. If what you are saying is true, I think I see the problem. If a house is in the wrong location location location, then why did the realtor bring a prospective buyer to my house house house? Didn't anyone look at map map map?

You make it sound as if buyers will buy a cardboard box to live in if it's in the right location location location.

Agreed, there are those for whom zip code is more important than quality, people who spend their inheritances on a down payment on a gorgeous house in an uber-expensive neighborhood and sit on lawn and patio furniture inside.

Most people, I am sure ARE interested in quality, features, and history of maintenance, even in older established neighborhoods. If I were interested in buying another house to live in (spare me), I'd want to know as much about it as possible: from soil stability and foundation to the roof and gutters. Most buyers would be interested in these things if they knew about them, regardless of the location location location.

The house condition is secondary to location (which gives the price range).

Condition comes into the picture after the offer is made and accepted, when the buyer's inspector will find less things that are wrong with the house. For a well maintained house, the buyer will have less leverage to get the house price much lower then the offer.

What I was trying to say is that same house has different value depends on what part of the town/street it is located. Hard to argue with that.
And this it is not subjective, it is given by the historical sale value of similar layout houses in that area.

Many owners make the mistake of spending a lot of money in a house until it exceeds that location max sold value (for similar property layout). Then they will ask for a larger than average price since they think it is worth it (based on their investment).
These are the people that will have hard time to get their money back, since real house value is capped by that area.

[hotrod2448]

Like anything else, there are good agents and bad agents and a lot of things are very situational. We sold our last house FSBO, we knew the inventory was low and if a house was priced right it moved pretty quickly. We put the house on Zillow and we were under contract 2 days later.

The lady buying had an agent and we paid him a 3% commission. He did not do her any favors. Her sister found the house on Zillow and called me directly to setup a showing. He actually got her to come up to full ask to cover his commission. He also told me he was just ready to be rid of her and that if she didn't buy the house he might be interested as he's been looking to purchase something.

After this I was fully convinced realtors had gone the way of the travel agent and were no longer necessary. So that said after looking for a new house for a couple of weeks we were getting a bit frustrated not finding anything we wanted. We lucked up finding a great buyers agent at an open house and I can honestly say she was well worth it. She showed us a few areas we hadn't really considered, hooked us up with a great lender, excellent home inspector, sorted out some stuff with the tax card due to the owner building out some unpermitted square footage in the attic and also helped my wife and I keep realistic expectations.

The sad thing is I believe she is more the exception than the rule. There are a lot of crappy agents out there that give the profession a bad name.

[28079]

Originally Posted by LarryBGood

And another thing: realtors calling and saying that they're going to show the house but never arrive or call to say that they've canceled.

The last time I sold a house that I lived in (not one of my rentals), realtors called to say that they were going to show the house. I suspected that most of these last-minute evacuations were unnecessary, so I stayed while the family made a mad dash down the street. Nobody showed.

What's up with that?

I would give realtors time windows when the house can be seen, other way it drives live in owners crazy.
Having a super clean house (plus out of the view personal things) during show time is paramount in my opinion. And this is no easy task especially with little kids, pets, etc.
First impression is most important and a buyer needs to find it easy to imagine himself/herself living there.

For last minute cancellation I'd blame the buyers who are not convinced it is the right house and or found another one they like. Realtors have all the interest to get it over with the ordeal of showing homes and close the deal asap.

[LarryBGood]

Originally Posted by 28079

The house condition is secondary to location (which gives the price range).

Condition comes into the picture after the offer is made and accepted, when the buyer's inspector will find less things that are wrong with the house. For a well maintained house, the buyer will have less leverage to get the house price much lower then the offer.

What I was trying to say is that same house has different value depends on what part of the town/street it is located. Hard to argue with that.
And this it is not subjective, it is given by the historical sale value of similar layout houses in that area.

Many owners make the mistake of spending a lot of money in a house until it exceeds that location max sold value (for similar property layout). Then they will ask for a larger than average price since they think it is worth it (based on their investment).
These are the people that will have hard time to get their money back, since real house value is capped by that area.

It would be nice if real estate agents were on the sellers' sides, but I'll wager that most are not. Granted, an agent must make the sale, and it's easy to get a buyer to agree to a price that's lower than the asking price. It's also easy to take advantage of the seller's desire to get out as soon as possible. Residential real estate sales that I've been witness to (friends and employees) have all been a win-win-lose proposition with the agent(s) and the buyer coming out ahead while the seller's shins come out black and blue.

It's Economics 101 not to develop property beyond that of its surrounding value, but to suggest that an a/c system, gutters, and a roof aren't worth replacing is inane. And you're right, a well-maintained house gives the buyer little leverage when buying. That's a house that real estate agents seem not to show much interest in unless it's under-priced and the seller wants out ASAP.

If you were in Charlotte 35 years ago, you would not recognize parts of Dilworth or Plaza Midwood or NoDa today. People who liked the location and took a gamble and "overdeveloped" are now sitting pretty on nice property that's worth a lot more than it might be worth had they not invested in renovating the property.

In defense of the good agents who do more than List and Leave, I say kudos. "Be fruitful, multiply, and fill the earth..." (Gen. 128)

But don't subdue it.