How quickly/easily does property sell in CA?

[LiptonGuy]

And how much do Real Estate Agents (in California) earn in fees ?

Can anyone provide a few examples ?

With the high real estate prices, is the market flooded with real estate agents ?

[Axiom]

I think most agents work off the standard 6%

3% to the listing agent
3% to the agent who brings the buyer


I'm not sure how it is in CA, but here in AZ, where I believe market conditions have been pretty similar to those in CA recently (thanks so much CA investors ) it seems we were flooded with RE agents in the last couple of years. And why not? All they had to do was put a house on the MLS and they had multiple offers overnight.

Now that the market has tanked (wait, let me rephrase that: has taken a slight downturn and prices are stabilizing ) Many of the folks who got in on a lark, or because they thought it would be quick, easy cash are moving on.

Still lots of RE folks out there of course, but for the most part it's the ones who have been around, are serious about the business, know what they're doing, and are not afraid to really work for a sale that are left.

[davidt1]

Speaking of CA real estate, I just read an article in the Friday edition of the LA Time titled "KB Home swings to loss." Basically, KB Home is losing money because of the housing market crash. Steve Johnson, a building industry consultant said, "There's a feeling that consumers are not comfortable that home prices are going to stabilize." when he referred to reluctant buyers.

Translation: There are no fools left. Today's buyers are serious, smart, knowledgeable, and are not willing to pay inflated prices.

Does everyone see how much power you have as a buyer? You decide where the market goes, not the sellers, realtors, or real estate cheer leaders ?

[Jedi5]

Originally Posted by davidt1

Speaking of CA real estate, I just read an article in the Friday edition of the LA Time titled "KB Home swings to loss." Basically, KB Home is losing money because of the housing market crash. Steve Johnson, a building industry consultant said, "There's a feeling that consumers are not comfortable that home prices are going to stabilize." when he referred to reluctant buyers.

But isn't KB still building homes in Cali?
I've seen online at least 2-3 brand new homes built by KB for sale around O'Side.

They look really nice but I'm not sure if they were incorrectly overpriced or these are just those higher end homes that only a select few can afford.
I think they were $750K and up.

[Ultrarunner]

You will find a lot less "Part Time" agents today and I've seen variations from the standard 6% commission... both ways.

I've seen listings written with 4% to selling agent and 2% to listing agent. I have also seen more 2.5% to each agent.

Another thing that has started to appear is selling agent bonuses. Incentives like a trip to Hawaii for the listing agents that brings in a full price offer resulting in sale.

It is definitely a time where "Everything" is negotiable.

The quickest way to find out if the agent you are considering listing with is being honest is to limit the listing term. More less than admirable agents are making unrealistic promises in the hopes of getting your listing and then insisting on a 6 month or longer listing period in the hopes, that given enough time, that something will happen.

A good agent should have no qualms with a 90 day listing.

[kettlepot]

Originally Posted by Axiom

I think most agents work off the standard 6%

3% to the listing agent
3% to the agent who brings the buyer

Actually, because of the higher prices in CA you can negotiate the realtor commission down to 5%. On a 600k house, that leaves plenty of money for both sides of the transaction.

Closing costs, transfer tax, title insurance, loan payoff fees, inspections, etc, will probably add another 1% to 1 1/4%.

[wanttoteach]

Originally Posted by Sassberto

At least in San Diego there doesn't seem to be any real "deals" outside of new property and condos. When you buy from the builder they can work with you a lot more than an individual homeowner can. Most people seem to be just leaving the property on the market for months rather than lower the price. I'm guessing a lot of them are just "fishing".

Yes, you are so right. I have been watching homes in the San Diego area for about 2 years now, and a lot of people are very stubborn and will not lower their price. I saw one house listed at 575K for about a year and 3 months and finally they dropped it-but only to 565K! They really do need to be realistic, and just because the house is located in San Diego doesn't mean that they should expect to get top dollar. We just sold our home in the Sacramento area. It took us 18 MONTHS! Yikes-we were greedy and unrealistic in the first month, and then we were priced well. But we were never the "best deal." Our house was wonderful. It really just takes one buyer...but, in this market, a house could sit on the market forever.

[shannon94]

Originally Posted by wanttoteach

Yes, you are so right. I have been watching homes in the San Diego area for about 2 years now, and a lot of people are very stubborn and will not lower their price. I saw one house listed at 575K for about a year and 3 months and finally they dropped it-but only to 565K! They really do need to be realistic, and just because the house is located in San Diego doesn't mean that they should expect to get top dollar. We just sold our home in the Sacramento area. It took us 18 MONTHS! Yikes-we were greedy and unrealistic in the first month, and then we were priced well. But we were never the "best deal." Our house was wonderful. It really just takes one buyer...but, in this market, a house could sit on the market forever.

I think some people ( no ALOT of people) are in a situation where they CAN"T come down on the price because they probably owe at least that much on the home or more. But hey....they've got the SUV and the Corvette in the driveway!!

[Axiom]

Originally Posted by shannon94

I think some people ( no ALOT of people) are in a situation where they CAN"T come down on the price because they probably owe at least that much on the home or more. But hey....they've got the SUV and the Corvette in the driveway!!

I talked to my RE agent yesterday.
She had just left a closing where the sellers had to bring $25,000 to the table to complete the sale. Of course they were less than thrilled with the price they got, but were still feeling grateful to even get a sale, given current market conditions, since they HAD to unload the house. And she did mention that they drove off afterwards in a big, fancy hummer.