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Old 09-16-2019, 09:24 AM
 
Location: Tennessee
24,447 posts, read 18,196,063 times
Reputation: 28717

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I just closed on a property Friday.

Both agents missed multiple things that I had to do myself. Various reports never made it to the lender that the agents say they had forwarded. I did that on my own. My agent wasn't on time for the final walkthrough. One of the agents must have forwarded an incorrect contract to the lender with the wrong purchase price - I had to make up the difference at closing to keep the loan from having to go back to underwriting. It was a relatively small amount on a relatively small loan, but it's the lack of attention to detail that's concerning.

No one even bothered to bring the keys to closing. The lockbox is still sitting on the porch, presumably with the keys inside. Fortunately, the seller just gave me his.

The agents were completely incompetent. The incompetence wouldn't make it anywhere I've ever worked.
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Old 09-16-2019, 09:30 AM
 
Location: Cary, NC
34,004 posts, read 59,132,601 times
Reputation: 32913
Quote:
Originally Posted by Serious Conversation View Post
I just closed on a property Friday.

Both agents missed multiple things that I had to do myself. Various reports never made it to the lender that the agents say they had forwarded. I did that on my own. My agent wasn't on time for the final walkthrough. One of the agents must have forwarded an incorrect contract to the lender with the wrong purchase price - I had to make up the difference at closing to keep the loan from having to go back to underwriting. It was a relatively small amount on a relatively small loan, but it's the lack of attention to detail that's concerning.

No one even bothered to bring the keys to closing. The lockbox is still sitting on the porch, presumably with the keys inside. Fortunately, the seller just gave me his.

The agents were completely incompetent. The incompetence wouldn't make it anywhere I've ever worked.

On the one hand, I'm laughing...
Then, I think, "Jeeze. I worked with these guys when they were in North Carolina...."
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Old 09-16-2019, 09:32 AM
 
852 posts, read 392,937 times
Reputation: 1193
Quote:
Originally Posted by Serious Conversation View Post
I just closed on a property Friday.

Both agents missed multiple things that I had to do myself. Various reports never made it to the lender that the agents say they had forwarded. I did that on my own. My agent wasn't on time for the final walkthrough. One of the agents must have forwarded an incorrect contract to the lender with the wrong purchase price - I had to make up the difference at closing to keep the loan from having to go back to underwriting. It was a relatively small amount on a relatively small loan, but it's the lack of attention to detail that's concerning.

No one even bothered to bring the keys to closing. The lockbox is still sitting on the porch, presumably with the keys inside. Fortunately, the seller just gave me his.

The agents were completely incompetent. The incompetence wouldn't make it anywhere I've ever worked.
Did you not interview them first?
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Old 09-16-2019, 09:41 AM
 
Location: California
4,580 posts, read 5,550,655 times
Reputation: 9876
Quote:
Originally Posted by davebarnes View Post
https://www.economist.com/united-sta...such-a-rip-off

Why America’s real-estate brokers are such a rip-off
Selling a house in the United States is extremely expensive


"...believes the problem lies in the anti-competitive practices of the Multiple Listing Service (mls), through which nearly every broker in America lists and searches for homes, and the National Association of Realtors (nar), a trade association with 1.3m broker members in America, which regulates it."
Hopefully, they will be replaced by AI upgrade!
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Old 09-16-2019, 09:48 AM
 
Location: Pittsburgh, PA (lovely hills but no ocean...)
1,218 posts, read 657,231 times
Reputation: 1382
As interest in a listed property wanes so does the listing agent's interest. No updates. No open houses. Real estate is often a second job to many an agent. O a way to make extra money. Perhaps hire a real estate attorney instead.
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Old 09-16-2019, 10:53 AM
 
131 posts, read 26,238 times
Reputation: 243
Quote:
Originally Posted by JPrzybylski07 View Post
No of course the buyer won’t bring extra dollars to the closing table, especially not to close out an upside down mortgage or other liens the seller are responsible for!

Put it this way, if commissions were shown on the buyer’s side of the settlement statement, property values would automatically decrease 6% on average across all markets. The sellers wouldn’t care that their house value has decreased 6% if commissions weren’t shown on their side of the settlement statement because they would still walk away with the same amount.

So instead of a house costing a buyer 100,000, it now would cost only 94,000 but added 5,640 in commissions added to buyer’s side, which nets the seller the same either way, and actually $540 in commissions are now lost to decreased sales price, boo boo realtors. Buyer pays a surcharge on sale price or directly pays commissions, either way they pay commissions.
I doubt that .. if I had a FSBO with no co-broke cooperating agreement I would not discount by 6%. If I did have a co-broke cooperating agreement to pay 3% to the buyer agent, I would not discount the other 3%. I would list at what I thought market value should.
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Old 09-16-2019, 10:54 AM
 
131 posts, read 26,238 times
Reputation: 243
Quote:
Originally Posted by Serious Conversation View Post
I just closed on a property Friday.

Both agents missed multiple things that I had to do myself. Various reports never made it to the lender that the agents say they had forwarded. I did that on my own. My agent wasn't on time for the final walkthrough. One of the agents must have forwarded an incorrect contract to the lender with the wrong purchase price - I had to make up the difference at closing to keep the loan from having to go back to underwriting. It was a relatively small amount on a relatively small loan, but it's the lack of attention to detail that's concerning.

No one even bothered to bring the keys to closing. The lockbox is still sitting on the porch, presumably with the keys inside. Fortunately, the seller just gave me his.

The agents were completely incompetent. The incompetence wouldn't make it anywhere I've ever worked.
That is something I would make the offending agent pay or delay the close. I would not pay out of pocket.
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Old 09-16-2019, 11:11 AM
 
852 posts, read 392,937 times
Reputation: 1193
Quote:
Originally Posted by Spokaneinvestor View Post
I doubt that .. if I had a FSBO with no co-broke cooperating agreement I would not discount by 6%. If I did have a co-broke cooperating agreement to pay 3% to the buyer agent, I would not discount the other 3%. I would list at what I thought market value should.
You wouldn’t be discounting anything at all because the market fair value would dictate your asking price, in my hypothetical scenario it would be the norm to account for buyers paying commission which would reflect in your asking price. If you compare this hypothetical market to our current one, asking prices for properties would be roughly 6% lower on average across the entire national market if commissions were shown on buyers side instead, all else being equal.

Of course this would change underwriting lending procedures among other things if buyers had to absorb such a direct upfront cost to buy a property, a cost that isn’t even equity. But on the flip side sellers wouldn’t have to worry about such a cost when time to sell. Commissions are being paid no matter what, and no matter how it’s shown on the settlement statement. At the end of the day it’s the buyers cash that’s put into escrow where the commissions get paid from. I’m done beating the dead horse.
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Old 09-16-2019, 11:17 AM
 
131 posts, read 26,238 times
Reputation: 243
Quote:
Originally Posted by JPrzybylski07 View Post
You wouldn’t be discounting anything at all because the market fair value would dictate your asking price, in my hypothetical scenario it would be the norm to account for buyers paying commission which would reflect in your asking price. If you compare this hypothetical market to our current one, asking prices for properties would be roughly 6% lower on average across the entire national market if commissions were shown on buyers side instead.
Interesting thought but I still don’t agree with you. Market value is dictated by more than just commissions. Another thing to consider is how would a bank feel about financing commissions if they are shown as an add on to the agreed price to be paid by the buyer. If, for instance, a commission is still 6% but represents a intangible line item to be paid by the buyer, would a bank then require the buyer to have a minimum downpayment PLUS the line item commission?
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Old 09-16-2019, 11:31 AM
 
852 posts, read 392,937 times
Reputation: 1193
Quote:
Originally Posted by Spokaneinvestor View Post
Interesting thought but I still don’t agree with you. Market value is dictated by more than just commissions. Another thing to consider is how would a bank feel about financing commissions if they are shown as an add on to the agreed price to be paid by the buyer. If, for instance, a commission is still 6% but represents a intangible line item to be paid by the buyer, would a bank then require the buyer to have a minimum downpayment PLUS the line item commission?
Like I said in my previous 2nd paragraph, there would be some cause and effect and it would change lender’s underwriting procedures no doubt to some degree. The advantage of our current system with showing commissions on the seller’s side is it does make for less barrier for buyers to enter the market, more buyers the better for the whole industry. But that barrier doesn’t just simply vanish, it just get’s put on the seller’s side instead.

The buyers can bite the bullet and pay commission upfront or kick the can down the road, most will kick the can down the road hence our current system, but the ironic thing is that since properties values typically do increase in value, 6% commission when you buy will be cheaper then 6% when you sell.
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