The 6% Real Estate Commission Bubble - Part III (Malibu, Rodeo: for sale, crime)

[JGC97]

Originally Posted by bubbleboy

Mr. Here On Mars

You wrote



To which I answered

If we are going to do this, you are going to mean what you say.
You think a few here have offered to be the buyer?
what the *&)*^ do you mean by that?
HINT: Here is where you tell me which post you are talking about.
If you can't find any, then your presence of mind must be questioned.


I was wrong. I did not see that someone had volunteered.
I did look, but did not go back far enough.

Please accept my apologies.

I will now go back to the kitchen and make me a crow salad.

Thank you for accepting the challenge.

Lets get started.

Thank you for the DM. Seeing how your schedule is tied up until May, I have to bow out. I'm sure you can find another willing participant here. Please do not DM me again as I have nothing to offer. I get the feeling you are gathering information for some sort of seminar you will be giving in the near future. If' I'm wrong, I apologize. I still don't quite understand what you are trying to do here. Frankly, it's one of the oddest threads I've seen on City-Data.

Good luck in your experiment.

[Rakin]

Originally Posted by HereOnMars

I still don't quite understand what you are trying to do here. Frankly, it's one of the oddest threads I've seen on City-Data.

Good luck in your experiment.

Wouldn't you love to have Bubble BH as your RE agent. I wonder how he stays in the business.

[JGC97]

Originally Posted by Rakin

Wouldn't you love to have Bubble BH as your RE agent. I wonder how he stays in the business.

I can't say what sort of agent he is. He may have a lucrative RE buisness for all I know. I think this thread is merely an avenue to garner information for a training seminar or maybe a "How-To" book. It's just odd to me.

[bubbleboy]

I am sitting in my office and an older gentleman walks in.

He tells me that he is interested in buying a ranchette, that money is no object.
That does not mean that he is willing to waste a penny.
This is not what he can afford. This is about how much he wants to spend.
He can probably afford more, but that is his business, not mine.
Like I said, money won't be an issue. That is a good sign.

He tells me that he's been a REALTOR in the past.
By walking into my office it tells me that he considered me after some reflection.
That is another good sign.

The first thing I am going to do is discuss my fee with him.

I introduce myself and as him what he is looking for.
At some point, I ask him where he lives now.
I really don't need the street number, but I want to know more or less
the type of property he is coming from.
He wants a ranchette, so does he come from another ranchette? and apartment or a suburban home.

As soon as he leaves, I will check the public records at the Title company to see his recent real estate activity. I will compare his name with the street he gave me to make sure I have the right person.

I will also figure out how many properties does he own, where did he live before etc.
All this is done so I can adjust my temperament to his and build rapport.
You don't want to treat an investor as a first time buyer.

Here is the conversation.

First thing we need to figure out is how much you are going to pay me.
As you know, the buyer does not pay the agent from his own pocket,
When ever you buy a listing, the seller pays for your agent.
What you don't know is that the seller usually pays 3% and although
my fee comes from that, I don't charge 3%. I only charge 2%.
I other words, once I get my commission, the rest is credited to you.
It is all legitimate and it is all in writing.

Once we figure that out, we'll sign a agency contract.
It is just a legal formality.

Don't worry about you being committed to me for a long period of time
or having to pay double commission or any other "folksy" story you might have heard.

We will sign a 2 week contract.
That will allow me to show you about 10 properties.
If we need more time, we simply extend the contract.
If you change your mind, then after two weeks the contract expires and we part ways.

Two things you need to consider.
1. I will keep a list of the properties I will show you and if you buy any of them in the next 6 months
then you owe me the commission.

2. If, while we are in contract, you find a property on your own, and I had absolutely nothing to do with it, and I mean we never even discussed it or I mentioned it to you, and you buy it, you don't owe me a thing.

Keep in mind that while you are under contract with me you can't sign up with another agent.
and if you buy a property with out an agent, getting the MLS % might be tricky.
You might get a discount on the price of the home, but that is not the same as a credit.

So, here is the contract.

buyer broker agreement

Take it home, read it and we'll sign it the next time when meet, when we start looking at listings.
That will give me time to look for listings that fit your requirements and have the list ready when we see each other again.

When do you want to start looking for properties?
I need two hours to do the MLS search. after that, I will be ready to start.

Anyone?

Take your time.

[DMenscha]

And this works for you?

You need 2 hours to do an MLS search? 30 seconds is more like it, not to mention if you don't know your inventory like the back of your hand, your service is of dubious value. "Don't try to describe the ocean if you've never seen it" (Thank you Jimmy Buffett)

Adjust your temperament? I guess I need to get an adjustable temperament. But then again, I'm pretty comfortable in the one I've developed over the past 50 years.

2 week agreement? what number do you put into paragraph 3.B.2 or 3? What's with the 6 month term?

I can look up any property in the US in a matter of minutes, I don't have to bother the title company customer service desk to check on anyone.

If I treated anyone like you propose in your scenario, I'd be out of business in a New York minute.

[bubbleboy]

Originally Posted by bgeo96

this is interesting , I'm not sure I understand any of it but maybe I can learn something. I'll role play the buyer if thats what you need?

Dear bgeo96

Thank you for volunteering.
Let me know when you are ready.

[bubbleboy]

Originally Posted by DMenscha

And this works for you?

You need 2 hours to do an MLS search?
But then again, I'm pretty comfortable in the one I've developed over the past 50 years.
If I treated anyone like you propose in your scenario, I'd be out of business in a New York minute.

Dear Perseverant one;

The buyer needs plenty of time to read the agreement.
I say that I need two hours, so we can start today, if that is what the buyer wants to do.
Because of the contract I want him to read, he got money coming to him
and I like him to be aware of that from the get go.

I don't need any time. If the buyer says "I'll sign now", I hand him the pen and drive him to the first property. but that is more show than substance.
I rather make a few phone calls and see the status of the listings.
Things change by the hour.

The temperament factor is about making the client comfortable. Not me.
It is my office, my turf, my hunting ground. I don't have a "comfort" problem.
The customer is out of his comfort zone. What I do has to do with knowing what to look for.

You do what you always do.

How you handle the consumer is a business decision, and you will live or die by your decisions.
This is not about you.
Nobody is messing with DMenscha.

I saw your license info.
Time will tell if you last and how well you do.
I wish you the best.

Your participation in this thread is not helping you or anyone.
This thread is not about agents showing off or not reading the material.
It has more to do with opening a dialog and giving the consumers a fair chance at getting the tools to negotiate.

Remember your own words:
Bad deeds come back and bite you, or words to that effect.

As for the rest of your questions, those will be addressed when I get my buyer,
time is on my side (MJ&TRS)

Like the old preacher used to say, Go in Peace, but go.

[DynamoLA]

Originally Posted by bubbleboy

2. If, while we are in contract, you find a property on your own, and I had absolutely nothing to do with it, and I mean we never even discussed it or I mentioned it to you, and you buy it, you don't owe me a thing.

Can you explain this part? We found a house on our own, and told our agent about it. We were looking in one area, but then I decided, "why not check this other area out" and searched on Redfin, and I found a house that looked promising.

But we still needed our agent to schedule the showing, and then when we got serious, to help manage the whole process of buying the house (i.e. offers, inspections, blah blah blah).

If you don't get paid if we find a house on our own, how would you make money for doing all the other stuff the agent is supposed to do (keeping in mind that finding a house is just one part of the job)?

I'm truly curious. With so much of the inventory on the internet these days, it seems like the odds of a prospective buyer finding a house on their own would be increased.

[bubbleboy]

quote=HereOnMars;28948362]Thank you for the DM. Seeing how your schedule is tied up until May, I have to bow out. I'm sure you can find another willing participant here. Please do not DM me again as I have nothing to offer. I get the feeling you are gathering information for some sort of seminar you will be giving in the near future. If' I'm wrong, I apologize. I still don't quite understand what you are trying to do here. Frankly, it's one of the oddest threads I've seen on City-Data.
Good luck in your experiment.[/quote]

Dear Sir.

Apology accepted and I take your remarks as a compliment.

This "puzzle" as the USDOJ calls it, is a tough nut to crack and as such, difficult to understand.
I am not particularly enjoying it, but those are the cards I've been dealt.

Thank you for your willingness to take a risk and participate.

Sincerely

[bubbleboy]

Originally Posted by DynamoLA

Can you explain this part? We found a house on our own, and told our agent about it. We were looking in one area, but then I decided, "why not check this other area out" and searched on Redfin, and I found a house that looked promising.
But we still needed our agent to schedule the showing, and then when we got serious, to help manage the whole process of buying the house (i.e. offers, inspections, blah blah blah).
I'm truly curious. With so much of the inventory on the internet these days, it seems like the odds of a prospective buyer finding a house on their own would be increased.

Dear Dynamo

Your agent's job will only end when you buy the property.
He does not have to be the one that find it for you.
He can, but he does not have to be. You can do it.
Your agent is an extension of you.
If you see something you like, tell your agent.
If I was you, I would not even drive by the property I found with out my agent.
Don't call, don't do anything. Let your agent do it.
Agent's know stuff that might escape you.

It is not about finding the property. It is about grabbing it.
You might find a property, tell your agent, the agent makes the offer, it gets rejected and be back on square one. Your agent won' mind. That is what we do.

You don't have a problem. You can make a list of properties and show it to your agent.
If he has a problem, he will explain it to you.
There are lots of properties that are bait.
They advertise it as a great deal, but the property sold long time ago.
In those cases, the person answering the phone will try to switch you,
since you are a hot buyer.
Talk to your agent, He's seen this before and knows the ropes.

You don't save money by not paying your broker. You will loose money.
All business books will tell you that you want to pay your broker well.

Kind of "never save money on attorney's fees" Sort of like that.

This thread is about negotiating the hiring of the agent.
Today, they are irregularities about that.

This thread happens before you sign the agency agreement.
Did the agent brake the law or his duties? that is what this is about.

Once you have the valid written agency agreement, then just do what the contract stipulates.
And if you have a problem, talk to your broker and consult an attorney.

I am not an attorney and nothing on this post is intended as advice, legal or otherwise.

I hope this helps