Where are all the deals?

[cmeibe]

Originally Posted by Drjoes

cmeibe: Why would you want to avoid a house sold by a realtor? I am curious as we have a realtor selling ours right now and I had no idea that would deter buyers.
Thanks!

I don't have a preference I just want to see everything thats out there whether its listed with an agent or not.

[Michelle Morris]

WOW! What an interesting read here! Lots of different opinions. I would love to try to help you all figure this all out by answering all your questions! I'll try to get some main things out...

1. Indy is a very stable and level market, we do not have huge increases in our market like other states do. Think of all those people in CA who bought a house, flipped it and sold for huge profits. That doesn't happen here. We therefore, have not fallen far down either. Sellers often tell me, "My house is for sale, but it isn't on the clearance rack!" Even in this "horrible" market, homes are selling for about 95% of asking price. Every real estate market is local, and much of the national news is exaggerated compared to our Indy market.

2> Buying a FSBO, without the help of a Realtor. People might think they could save money this way, but if the FSBO is trying to save money and the Buyer is trying to save money, who actually saves? If there are any contract disputes, if someone doesn't understand the real estate laws or contracts, if negotiations get ugly... yikes.

3. If you don't like your Realtor, if you think they are doing a bad job, fire them and hire one of the good ones!! There are far more good ones than bad ones out there, but people who have bad experiences seem to tell 5 times more people than those who have great experiences. If you have a good one, tell everyone about them.

[cmeibe]

your post was very helpful. it leaves me with another question.

can you purchase a FSBO with the help of your agent. As a first time buyer I see working with a agent as a must. can I expect my agent to help find the best house for my needs whether it be MLS or FSBO? I would hate to not know about a great home because the seller choose to try and sell it themselves.

[Michelle Morris]

Hi cmeibe,

An agent can help you with an FSBO, if the seller is willing to pay the agent. It is very difficult though, and some agents are not willing because we have to do the work of both sides and get paid less. Usually a FSBO really doesn't know the ins and outs of all the contracts, so when an agent gets involved, they have to really help both sides to get the deal done.

A lot of times though, when an agent calls a FSBO, we are hung up on immeditely. I would say, "Hi, this is MikiJayne with Carpenter Realtors" and I hear *click*. They don't know that the next words were going to be, "I have someone interested in your house." Or they don't care, or don't want to pay me. If the FSBO isn't willing to pay me, then either you have to or I can't work with you on that house.

I have tried several times to help buyers with FSBOs but so far it hasn't had any results. I am always willing to try though, and most agents should be willing.

[TraderJack]

Boy, am I glad MikiJayne spoke up here!
I'm a Realtor also and there's quite a bit of misinformation floating around on this thread.

First of all, you're right... most people think we're(real estate agents) a step above or below used car salesmen. Definitely NOT to be trusted! That's something each of us have to cope with.

Finding a quality agent is a lot like finding a quality school. You have to ask around, interview the available applicants, look over the past record of success, then decide if you even like the person(or school).
If you just walk into an agency and take the first agent that greets you, well, you're just rolling the dice.

There are many great agents out there and most of the good ones are very busy. Take your time and shop around.

Regarding how agents get paid... Agents are generally paid by the seller. That means buyer's agents work for the buyer at no cost to the buyer.

The misperception that the price of the home would be lower if the seller represented themselves is just not true.

The price of the home is based on "market value". If the home is priced too high, it won't sell. If it's priced too low, buyers will ask, "what's wrong with it?"

For example, if a $200,000 house is sold by a Realtor and the buyer was represented by another Realtor, the seller would pay the selling broker a commission and the purchasing broker a commision. If the commission were 6%, then 3% would go to the selling broker and 3% would go to the purchasing broker. The seller would pay a total commision of 6% of 200K = $12,000. The seller would realize roughly $188,000 less other expenses.

Sales statistics prove that the seller will not succeed in selling the house if he prices it at $215,000. And he won't succeed at offering it at $188,000 to an un-represented buyer. The market wants the house to be priced correctly... at $200,000, or it will ignore the listing an it will languish at the seller's lament. The price of the home will be determined by the market.

If you are looking for a home and want to purchase from a For Sale By Owner, be prepared to learn all the 'legaleeze' you can stand. You will be negotiating, writing a very important contract and getting it accepted by all parties, performing all inspections, applying for and sheparding your loan,and making sure nothing gets swept under the table or forgotten at the closing.
Realtors really do earn their money.

Most real estate agents are very good people. They drive you around town in their vehicle, using thier gas, and show you several homes in your price range. They work with loan officers, banks, mortgage companies, builders, developers, community planners, school districts, chambers of commerce and many other civic minded organizations. They know a lot about the community you want to live in. They're a great resource and most of them work very hard for their clients.

I don't expect to change any minds here, just clear the air a little. Most of us realize what you think of us, and we bend over backwards to try and change that perception. We really do try to earn your respect.
Regards,
TraderJack

[Michelle Morris]

Thank you for adding your thoughts, TraderJack!

[greybasement]

I would recommend looking for homes within the Irvington area of Indianapolis. The property values always increase and the local realty company had an average listing time of 34 days this summer.

[NLay]

I moved to Indy 2 yrs ago and cannot beleive what we got for the money. My house was built in 2000 and it has 2000+ sq ft and needed no work but some minor painting, the neighborhood is great. Check into the 46203 area code in Franklin Township.

[westcoastcate]

I for one believe strongly in trying to sell your home yourself. I don't understand why most agents still get 6% no matter what the selling price of the home is!

That may have been okay in 1960, but today?? Can you imagine a 6% commission on a 500,000 home or a million dollar home? Ridiculous!

All you have to do is list your house for FREE on the MLS on the iggy's house website (if available in your state- more states added monthly). Buy a book or study all the steps you need to complete in selling your home. Many real estate lawyers charge a set fee to help you make sure all is done legally.

Advertise your home in the paper, and the MLS, Craig's list, and anywhere else you can think of. Read up about this on the many for sale by owner websites. Many have a set fee to list on the MLS, as well. Iggy's is free if it's available in your state. Selling your house is not rocket science.

Why not save 20-30,000 dollars!? If you believe you can show your own house, go for it. Also, put on your for sale sign in front of your house, if you wish, that buyer's agents are welcome, meaning you'll pay them 2-3%. That's much less than paying your listing agent 6% (which they split with the buyer's agent).

The buyer's agent will NOT do all the work, either. Your real estate lawyer, and title company (you pay for their work) do most everything! For much less, I might add.

Buyers can find houses on the MLS themselves, and in fact, most do now. There's no reason not to buy from an fsbo. You'll save money, too, in all likelihood!

Agents need to realize times are changing, thanks to the world wide web. People are no longer content to sit back and wait on an agent to have their best interests at heart. This doesn't mean there aren't good agents, but there are plenty bad.

I'm about to do my first FSBO and I've already found a real estate lawyer, and title company that work with FSBO's. I don't need a listing agent. However, I would welcome a buyer's agent since they bring most of the buyer's, not because they'd do the work. They don't. Title co's and lawyers do that for MUCH less than the percent paid a listing agent!

Hope this sheds light fairly on both sides of this issue.