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Which works on items that are NOT appraisal issues. If defects will get flagged on appraisal, like the roofing and electrical might do... they must be fixed by the seller, or the house won't finance. A house that won't finance is much harder to sell at retail price.
Several times I have used the work around for Schedule 1 Structural Pest Report Items and once for a roof... I did not want a cheap roof and the seller was not going to pay for anything but the bare minimum FHA roof...
I placed twice the repair costs in Escrow, had the work completed within 90 days, with permits as needed, filed a Notice of Completion and paid for a re inspection...
Several times I have used the work around for Schedule 1 Structural Pest Report Items and once for a roof... I did not want a cheap roof and the seller was not going to pay for anything but the bare minimum FHA roof...
I placed twice the repair costs in Escrow, had the work completed within 90 days, with permits as needed, filed a Notice of Completion and paid for a re inspection...
Good info. That's a good option for those who DO have the cash... apparently twice the cash... to make that happen.
J_B... Enough. Everysinglething we buy from another person is paying a few to many people's salaries who helped make it happen. That's how the economy works.
That is not just true with Real Estate Commissions. The house has a value that includes the sweat and effort of the guys who cut the trees and planed the lumber, and drew the plans and put it all together and painted it and.... The chain of involved persons goes on and on. Some will feel our commissions are well earned... some won't. They'd probably be right! The same can be said for those who pay $9.99 for a Hamburger. Or a couch, or a car. Value is subjective, and sometimes... highly variable. Some are better values than others, and not everyone will value the same thing.
How much of YOUR life energy are you spending just talking complaining about the Real Estate industry? Is that going to feel worth it in the end? For your sake, I hope so.
When I buy a car... the only thing I care about is the out the door price...
When I buy a home... it is the same... how it gets divided is of no interest to me.
The only reason For Sale by Owners represent themselves is to increase their net... totally understandable but it is foolish to think the For Sale by Owner is going to "Pass Along" the savings to the Buyer.
Good info. That's a good option for those who DO have the cash... apparently twice the cash... to make that happen.
It use to be 1.5 times... the last time it was 2 times... nobody really likes this option and forget about anyone volunteering...
In my case it let me use premium materials that no seller would ever use simply to sell...
I like good roofs... do it once and be done... this means removing all of the old roofing... sometimes putting down new sheathing... double coverage 30# felt, heavy gauge flashing and Lifetime or 50 year shingles or standing seam metal roof...
When I buy a car... the only thing I care about is the out the door price...
When I buy a home... it is the same... how it gets divided is of no interest to me.
The only reason For Sale by Owners represent themselves is to increase their net... totally understandable but it is foolish to think the For Sale by Owner is going to "Pass Along" the savings to the Buyer.
It's a common refrain here that the system is designed so that the services purportedly provided to the buyer via the buyer's agent are paid by the seller for the reason that they can be mortgaged. I.e. if buyers paid directly for the services rendered to them, they would need to pay with cash, like they do for an attorney, inspector, etc. Having the seller pay for it allows it to be rolled into the overall price and mortgaged. This is not my idea. Just repeating what i've read here. And it shouldn't be controversial and anyone who disagrees should offer a good alternative reason why services to the buyer would be paid by the seller as this is not intuitive by any measure. Nobody can agree who pays for buyer's agent commission so let's not debate that but you can't have your cake and eat it...if you talk about mortgaging commission, you need to address the financing costs.
So, it's absolutely relevant to raise the reminder that things that are financed have finance (interest) costs. I don't see why this is so controversial. If you add 20k to your mortgage that's attributable to commission is going to cost you roughly 36k. That's just the fact.
As for headline pricing only, many people do care about transparency in pricing. And there are many examples of regulators outlawing 'bundling' and pricing that's not transparent - cell phones and financial services are good examples. So I believe the tide is in favor of transparency, not "just the headlines". And I do care if my car pricing includes unwanted things like undercoating treatment. Or if my TV price includes costs for unwanted extras like a service plan, etc.
Worse part of all this is the waiting. They have until 6 tonight with a response but we've been anxious since the inspection.
As far is whether the house is priced accordingly, it's not. It's 20K over what the last house sold for (October) and this one is a bit smaller by about 300 square feet. It will be interesting what it appraises for. You factor in some of the work that may need to be done, maybe there's even more wiggle room, who knows.
It's a common refrain here that the system is designed so that the services purportedly provided to the buyer via the buyer's agent are paid by the seller for the reason that they can be mortgaged. I.e. if buyers paid directly for the services rendered to them, they would need to pay with cash, like they do for an attorney, inspector, etc. Having the seller pay for it allows it to be rolled into the overall price and mortgaged. This is not my idea. Just repeating what i've read here. And it shouldn't be controversial and anyone who disagrees should offer a good alternative reason why services to the buyer would be paid by the seller as this is not intuitive by any measure. Nobody can agree who pays for buyer's agent commission so let's not debate that but you can't have your cake and eat it...if you talk about mortgaging commission, you need to address the financing costs.
So, it's absolutely relevant to raise the reminder that things that are financed have finance (interest) costs. I don't see why this is so controversial. If you add 20k to your mortgage that's attributable to commission is going to cost you roughly 36k. That's just the fact.
As for headline pricing only, many people do care about transparency in pricing. And there are many examples of regulators outlawing 'bundling' and pricing that's not transparent - cell phones and financial services are good examples. So I believe the tide is in favor of transparency, not "just the headlines". And I do care if my car pricing includes unwanted things like undercoating treatment. Or if my TV price includes costs for unwanted extras like a service plan, etc.
How would a consumer even know what the seller is paying for a commission or how it is split?
If I am selling my home as I did... the offer that provides me the highest net is the one I am going with...
As for the cost of financing commission or rolling it into the mortgage... over 40% of the sales in my area are cash sales... so nothing be rolled into a mortgage since no mortgage exists.
Brokers are part of business and not limited to Real Estate... Insurance, Real Estate, Investment are common but there are brokers in just about all segments... especially in farming where half my family tree is grounded...
Again... when it is all said and done... look at the net that remains.
I believe those against would have a stronger position if a home owner was required to use a broker... no such requirement here and I have been on both sides...
Some of the best transactions only came to me because the Broker called me and said I have a property I think you will like...
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