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More choices = more competition = lower prices. You can understand that can't you Mike ? The MLS is a arcane way of restricting competition and keeping commissions stuck at 6%. Nuff said.
When I purchased my current home, 19 years ago, the real estate agent asked us a couple of questions, and took us to see a couple of homes; we had to do the research and legwork ourselves. Won't make that mistake next time. Would rather sell ourselves and keep the 6% since this is such a hot market.
A neighbor nearby is selling himself and--- you guessed it ---he has a "coming soon" sign in his front yard. The demographics of this hot market allow us savy folk to try this route.
So many fundamental errors in your post, worthy of discussion.
1. "More choices?" but you would prefer to see sellers' choices restricted by not allowing "Coming Soon?"
2. MLSs exist for two reasons:
To share listings amongst all members.
To guarantee some compensation to cobroke agents.
3. All MLSs' rules require compensation for a cobroke agent who brings a buyer to be baked into the price. That compensation can be $1.00.
MLS does not require any level of compensation over $1.00 and does not require a listing agent to accept any level of compensation at all.
And houses sell.
4. "6% commission?"
LOL at that. You truly just cannot be serious. Some things have changed, for the better, in 19 years, for sure. There are choices for consumers that you overlook if you don't update from 19 years ago, choices whole-heartedly supported by Triangle MLS, by RRAR, NCAR, and NAR. Any property in Raleigh, Wake County, and the entire Triangle can be sold at far less than a 6% commission. With full agent fiduciary roles on both sides of the transaction. It happens every single working day..
6% commission in Raleigh generally means that you are paying a listing agent 3.6% to sell a house, because, day in, day out, 90% of listings offer a 2.4% cobroke. 3.6% is a charity to the listing agent, as they cannot deliver a higher price than a lower cost listing agent. And, they cannot honestly claim that higher commissions alone yield higher net proceeds to their clients.
And the market bears that out, clearly. Houses sell regardless of commission.
Factoring a "standard 6%" into the transaction is starting with a false pretense.
When you decide to shift the buyers' agent commission from buyer paying it as baked into the price to an additional out-of-pocket cost to the buyer, you passively raised your price by the amount of the commission.
You will cull many buyers from the pool, because they can't or won't pay out of pocket. Or, won't overpay to cover your misunderstandings.
If you comp against properties that have sold with buyer paying a 2.4% commission to their agents, You MAY be able to find a sucker who will overpay by 2.4% for your home, as the market is so tilted to sellers currently.
But, if you sell in the future, if the market shifts, if there is a significant economic debacle in any way reminiscent of 10-12 years ago, you won't be able to move the house while impulsively limiting buyer choice and overpricing.
Have at it.
I live in the United States of America. I believe that all people are endowed at their Creation with the God-Given Right to inflict whatever financial damage to themselves that they care to; and also are endowed with the responsibility to pay the freight for exercising that right.
Last edited by MikeJaquish; 02-24-2020 at 05:26 AM..
Whatever. You can question anything you wish, its all good. The Triangle has a hot real estate market, fact. Your anecdotal evidence neither supports nor disproves that. I can't fathom why you, or anyone else bothers to try to dispute that, but if it makes you feel better then then have at it.
Again, I was simply posting information that I came across. I didn't write it, I didn't do the research, I'm not responsible for it, I'm not vouching for the absolute accuracy of it, I'm not claiming to know how it was formulated, etc. If you want to question it, feel free, just don't direct your questioning at me.
It was actually your defense of the numbers I was addressing as if though you curated and proofed them; they were just fodder for an article you cited. And again, the real estate market is hot in certain pockets, not in all pockets. Most arguments based on anecdotal sources are intended to illicit an emotional response, not frame an argument properly.
Quote:
Originally Posted by TarHeelNick
For your former house...it probably has more to do with Opendoor listed homes generally being priced far too high to begin with and OD homes being seen as an "inferior product" to many buyers. OD listings under-perform the MLS on pretty much every metric that can be analyzed in every price-range. They have narrowed that price range considerably since entering the market about 2 years ago.
Now if most other homes in your former neighborhood are also sitting for 60+ days......
Houses tend to sit on the market for 45+ days except for those which are priced aggressively to sell. But I'm also in agreement with your comments about Opendoor, they use the margins they squeeze out of the seller to buffer against being stuck with a property for any length of time.
What surprised me the most about how they've handled things is that they put the bare minimum into getting the house ready for market and bypassed some fairly obvious and inexpensive updates (rusted bathroom fixture, marked up paint on the kitchen cabinets). Maybe common sense can add value where algorithms fail to work.
It was actually your defense of the numbers I was addressing as if though you curated and proofed them; they were just fodder for an article you cited. And again, the real estate market is hot in certain pockets, not in all pockets. Most arguments based on anecdotal sources are intended to illicit an emotional response, not frame an argument properly.
Houses tend to sit on the market for 45+ days except for those which are priced aggressively to sell. But I'm also in agreement with your comments about Opendoor, they use the margins they squeeze out of the seller to buffer against being stuck with a property for any length of time.
What surprised me the most about how they've handled things is that they put the bare minimum into getting the house ready for market and bypassed some fairly obvious and inexpensive updates (rusted bathroom fixture, marked up paint on the kitchen cabinets). Maybe common sense can add value where algorithms fail to work.
1. It is cliche, but always accurate:
"The market is segmented by both price and location." Yup.
2. Cash burn and panic over no clear path to profitability. They need a path forward showing profit potential so they can IPO and pay off VC's and pocket millions in stock. Cutting all possible corners is like a restaurant going cheaper on food because they cannot raise prices. Often a path to failure.
It was actually your defense of the numbers I was addressing as if though you curated and proofed them; they were just fodder for an article you cited.
Again, I'm NOT defending the numbers. Why is this hard to understand?
Quote:
Originally Posted by NYC2RDU
And again, the real estate market is hot in certain pockets, not in all pockets. Most arguments based on anecdotal sources are intended to illicit an emotional response, not frame an argument properly.
The story I posted was based on all 2,000 sales, not anecdotes. Ironically enough, you attempted to discredit this with anecdote about a house you used to own.
It was actually your defense of the numbers I was addressing as if though you curated and proofed them; they were just fodder for an article you cited. And again, the real estate market is hot in certain pockets, not in all pockets. Most arguments based on anecdotal sources are intended to illicit an emotional response, not frame an argument properly.
Houses tend to sit on the market for 45+ days except for those which are priced aggressively to sell. But I'm also in agreement with your comments about Opendoor, they use the margins they squeeze out of the seller to buffer against being stuck with a property for any length of time.
What surprised me the most about how they've handled things is that they put the bare minimum into getting the house ready for market and bypassed some fairly obvious and inexpensive updates (rusted bathroom fixture, marked up paint on the kitchen cabinets). Maybe common sense can add value where algorithms fail to work.
Yep exactly. Hence the overall impression among buyers that Opendoor houses are "inferior" products. They used to at least install new gray warehouse carpeting and paint all the walls beige...but I've noticed they've stopped doing even those "updates" in most of their listings now.
Yep exactly. Hence the overall impression among buyers that Opendoor houses are "inferior" products. They used to at least install new gray warehouse carpeting and paint all the walls beige...but I've noticed they've stopped doing even those "updates" in most of their listings now.
I have inspected a lot of Open Door houses. They tend to have long lists. You are correct, they have all but stopped with the new cheap paint and carpet over the last year. IME, they are houses sellers did not have the money to perform routine maintenance and repairs, and it shows.
So many fundamental errors in your post, worthy of discussion.
1. "More choices?" but you would prefer to see sellers' choices restricted by not allowing "Coming Soon?"
2. MLSs exist for two reasons:
To share listings amongst all members.
To guarantee some compensation to cobroke agents.
3. All MLSs' rules require compensation for a cobroke agent who brings a buyer to be baked into the price. That compensation can be $1.00.
MLS does not require any level of compensation over $1.00 and does not require a listing agent to accept any level of compensation at all.
And houses sell.
4. "6% commission?"
LOL at that. You truly just cannot be serious. Some things have changed, for the better, in 19 years, for sure. There are choices for consumers that you overlook if you don't update from 19 years ago, choices whole-heartedly supported by Triangle MLS, by RRAR, NCAR, and NAR. Any property in Raleigh, Wake County, and the entire Triangle can be sold at far less than a 6% commission. With full agent fiduciary roles on both sides of the transaction. It happens every single working day..
6% commission in Raleigh generally means that you are paying a listing agent 3.6% to sell a house, because, day in, day out, 90% of listings offer a 2.4% cobroke. 3.6% is a charity to the listing agent, as they cannot deliver a higher price than a lower cost listing agent. And, they cannot honestly claim that higher commissions alone yield higher net proceeds to their clients.
And the market bears that out, clearly. Houses sell regardless of commission.
Factoring a "standard 6%" into the transaction is starting with a false pretense.
When you decide to shift the buyers' agent commission from buyer paying it as baked into the price to an additional out-of-pocket cost to the buyer, you passively raised your price by the amount of the commission.
You will cull many buyers from the pool, because they can't or won't pay out of pocket. Or, won't overpay to cover your misunderstandings.
If you comp against properties that have sold with buyer paying a 2.4% commission to their agents, You MAY be able to find a sucker who will overpay by 2.4% for your home, as the market is so tilted to sellers currently.
But, if you sell in the future, if the market shifts, if there is a significant economic debacle in any way reminiscent of 10-12 years ago, you won't be able to move the house while impulsively limiting buyer choice and overpricing.
Have at it.
I live in the United States of America. I believe that all people are endowed at their Creation with the God-Given Right to inflict whatever financial damage to themselves that they care to; and also are endowed with the responsibility to pay the freight for exercising that right.
Thanks, Mike. Didn't mean to upset you. Anyhoo- I intend to wait for drones to do the work for me. Hey, anything to save a nickel. Or a 6% commish.
Again, I'm NOT defending the numbers. Why is this hard to understand?
The story I posted was based on all 2,000 sales, not anecdotes. Ironically enough, you attempted to discredit this with anecdote about a house you used to own.
As much as it pains me, I agree with Edward Teach on this.
Last edited by Mr. Raleigh; 02-24-2020 at 10:01 PM..
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@ "upset."
