Compensate Realtor (appraise, fees, inspection, venting)

[flymikee]

Originally Posted by Brandon Hoffman

And again you're wrong for the reasons I've already posted. You should from your post with "My opinion from my limited experience in NJ alone..." and stop presenting your posts as facts. They are not very accurate for much of the country.

Thanks Brandon for the feedback. I stated several times in my posts that I am just giving my opinion and experiences, isn’t that one of the main purposes of a forum? Besides, I don’t think that any reasonable person would perceive my comments to be facts. I don’t have a dog in this fight, but simply trying to kill time while I’m in Hawaii on a week-long conference. Sitting in a conference room for 5 hours straight listening to speeches can be quiet boring.

I already replied to your previous reasons and stated that I agree with you an attorney won’t be knowledgeable about repairs. However, I would go to a repairman for estimates before relying on the realtor’s estimates. Sure you might have experiences on the ball park ranges of what it might cost for something, but at the end of the day, most realtors are not “qualified” to give that estimate. Whether I need to negotiate for a repair credit or decide if it is a major issue, I would like some more ammo besides just my realtor’s words. Preferably a written estimate from an established contractor, repairman etc. I am surprised that people would go into a real estate transaction without proper legal representation, I would think I have much more to lose without having a good attorney. No offense, but if something went wrong during the deal and I have to violate the contract in one way or another, do I expect a realtor to give me legal advice?

I have yet to hear any real-life examples to counter my opinion that realtors aren’t as valuable after the contract has been signed. I believe Austin-Steve just gave some great examples, which I’ll address in a moment. I welcome any examples that someone can give me that shows the realtors value that I wouldn’t be able to get elsewhere, either from an attorney, contractor, mortgage…etc. after the contract has been signed.

[flymikee]

Originally Posted by austin-steve

Well, you incorrectly assume that the typical buyer has a rolodex of home repair specialists and contractors.

If the inspector flags the HVAC, I have an HVAC company I've used for over 20 years that will come and evaluate the system and provide a written estimate of needed repairs. They drop everything and do this for me when called upon. Nobody has to pay them on site, they bill me later and I forward to the buyer.

Who would a buyer on his own use, the Yellow Pages?

Same exact scenario for roofers, electrician, foundation, septic, well, general repairs, plumbers, etc.

Some inspections trigger 2 or 3, sometimes more follow up inspections, and we usually have less than a week (under a 7 day Option Period - as we call the inspection period in Texas). As I stand there with the buyer and inspector at completion of the inspection, I'm on my phone lining these guys up. Most buyers, especially first timers, have NEVER EVEN HIRED or dealt with any of these trades and they'd be flopping in the wind trying to accomplish what an experienced Realtor can get lined up with a few phone calls.

Steve

Thanks Austin-Steve for these examples. I appreciate this level of detail rather than just some high-level statement about how realtors add value after the contract.

I absolutely agree that most people will not have a rolodex of repairmen or contractors. And that is certainly valuable, however in the NYC metro area where I reside, access to listings of repairman and contractors are plenty. In this day and age where information and reviews are easily accessible, it shouldn’t be that difficult to find a reputable contractor or repairman for any problem. Sure, it would be easier to get names and companies from a realtor, but I can also get it from the web or other referrals (friends, attorney, family, and neighbors) with a little work myself. Besides, if a house requires that many inspections and causes that much of a major concern, I can imagine many buyers will walk away from the contract.

[austin-steve]

Originally Posted by flymikee

Thanks Austin-Steve for these examples. I appreciate this level of detail rather than just some high-level statement about how realtors add value after the contract.

I absolutely agree that most people will not have a rolodex of repairmen or contractors. And that is certainly valuable, however in the NYC metro area where I reside, access to listings of repairman and contractors are plenty. In this day and age where information and reviews are easily accessible, it shouldn’t be that difficult to find a reputable contractor or repairman for any problem. Sure, it would be easier to get names and companies from a realtor, but I can also get it from the web or other referrals (friends, attorney, family, and neighbors) with a little work myself. Besides, if a house requires that many inspections and causes that much of a major concern, I can imagine many buyers will walk away from the contract.

Well, not meaning to offend you, but you're still showing a lot of green around the ears on this subject. Not just any vendor will do. Even one with a good Yelp review, or whatever.

The time windows are often very short, and things can get chaotic. So, as an effective Realtor/negotiator, I need the following from my vendors:

1) Squeeze me in on short notice. I send you a lot of business because you're good, but in return I need priority status when requested. My buyers will appreciate it and probably become new customers of yours for the coming years.

2) Bid it right. Don't try to call a system "dead" when it's serviceable and has at least 5 years of good life remaining. If it is a goner, or near-goner, document why in the estimate.

3) Get me a written bid same day or next morning, explaining the work in detail, and offering whatever either/or options might be available. We'll be using this document to negotiate the best outcome possible for our buyer.

Then, when negotiating with a listing agent about an HVAC or roof for example, I am able to use a well worn script, which is, "look, I've been using these guys forever. They are good honest people and if they say the system (or roof) is a goner, it's a goner. If it was serviceable and had any real life remaining, they would tell me. So we're really going to need to work this into the deal per the Amendment I sent you".

You're saying you're script would be "I found this guy on Yelp and he has good reviews". As a listing agent, I'd say "not good enough, I'm sending my own guy to have a look".

Steve

[MikeJaquish]

When a vendor I know on a 1st name basis gives me assurance he will come out within the timeframe I need, you can set your watch by him.

I haven't had that experience very often with people I find in the Yellow Pages, on BBB, Yelp, etc.

When the lenders my people have sourced have dropped the ball at the last minute, and I offer a trusted, competent lender to step in and get the deal closed fast, my clients seem to think I have brought value after contract.
It has happened more than once.

[MikeJaquish]

no brag just fact - YouTube

[LynnKK]

The buyer's broker agreement with her agent states what is to happen...nothing else. If he/she didn't include the proper compensation language, no matter what/when/where was purchased with a proper drop-dead date, then that is the lesson learned from this agent. She did nothing wrong. Why are you all making her feel like a criminal. She went out and found what she wanted after looking at 20 homes with the broker (he wasn't exactly hitting the mark now, was he/she?). She is purchasing the home she found, she wanted and there is no commission involved to split, divvy up, etc. Had the agent accomplished the goal 20 houses ago, there would be no conversation. The sense of entitlement happens all the time when the job has not been accomplished.

[MikeJaquish]

Originally Posted by LynnKK

The buyer's broker agreement with her agent states what is to happen...nothing else. If he/she didn't include the proper compensation language, no matter what/when/where was purchased with a proper drop-dead date, then that is the lesson learned from this agent. She did nothing wrong. Why are you all making her feel like a criminal. She went out and found what she wanted after looking at 20 homes with the broker (he wasn't exactly hitting the mark now, was he/she?). She is purchasing the home she found, she wanted and there is no commission involved to split, divvy up, etc. Had the agent accomplished the goal 20 houses ago, there would be no conversation. The sense of entitlement happens all the time when the job has not been accomplished.

Actually:

• None of us has seen the agency agreement, and cannot say what language was there. Most responses are from the perspective of the buyer agency agreement the agents use. Does South Carolina have a standard form, and is it customary for the agent to agree to be non-exclusive in an exclusive agreement?
• The agent was OK in the original post and there was no issue until reasonable compensation was mentioned. Then it became necessary to disparage the agent to rationalize breaking the agreement with as little regard as possible.

Originally Posted by Ann Alison

I've had a realtor show me about 20 houses over the last year. I made an offer on one that fell through, and at that time also signed a buyer agency contract making him my exclusive agent. But I just found one for sale by owner, called the owner, saw the house, and want to buy it, not realizing until talking with the owner a second time that they won't pay a realtor commission. My realtor was not involved in it at all. I'm going to hire a real estate attorney for the buying process, and ask about that contract, and whether I should pay my realtor a commission........But my question is, IF I don't pay my realtor a commission, what should I do to compensate him for his time? He doesn't know about this FSBO yet and I dread telling him his time was wasted.

[Silverfall]

Originally Posted by flymikee

Thanks Austin-Steve for these examples. I appreciate this level of detail rather than just some high-level statement about how realtors add value after the contract.

I absolutely agree that most people will not have a rolodex of repairmen or contractors. And that is certainly valuable, however in the NYC metro area where I reside, access to listings of repairman and contractors are plenty. In this day and age where information and reviews are easily accessible, it shouldn’t be that difficult to find a reputable contractor or repairman for any problem. Sure, it would be easier to get names and companies from a realtor, but I can also get it from the web or other referrals (friends, attorney, family, and neighbors) with a little work myself. Besides, if a house requires that many inspections and causes that much of a major concern, I can imagine many buyers will walk away from the contract.

Well short sales aside where what agents do is all after contract...

Yes absolutely, people can spend time researching things on their own, but most states run with time is of the essence clauses in the initial contract. I don't think your states do. We don't have time to dink around with buyers spending time researching contractors to find out whom they want to hire.

It is 30 days from offer to close out here. If you eat two days researching contractors and making calls trying to find someone to come out in a timely manner, you lost two days of repair negotiation time. Out here we typically have 10 days to get inspections and repairs negotiated. We don't dilly-dally.

So, yes just like Austin-Steve, I'm on the phone in the middle of a home inspection calling contractors to get second opinions and quotes for the following day. I also know which contractors will bill escrow for repairs so sellers don't have to pay out of pocket but have it paid out of the equity of their sale. This is really important for large repair bills. If I can give a quote to a seller for a roof replacement from a contractor that I know does good work and will bill escrow it makes it a lot easier for the seller to say yes to that large repair.

It isn't rocket science what happens after the contract but it is knowledge. Knowing who can do what, well and quickly is important to keeping transactions on task and closing on time. With the many appraisal issues we have been having recently, putting together a nice packet for the appraiser on the local comps is really important if you are representing the seller. Preventing a low appraisal is in your clients' best interest if you are a listing agent. Mine come with pretty market trends charts because I'm a data geek.

Off the top of my head here are some things agents should be doing post contract. It isn't rocket science, but I wouldn't call it house sitting either.

Arranging inspections

Arranging quotes for any large items or secondary opinions

Ensuring deadlines are hit

Checking in with lenders for status updates often

Meeting with appraisers and talking comps

Negotiating repairs

Confirming repairs

Any due diligence that wasn't done prior such as confirming zoning, flood plains, landslide hazards, pulling permits, etc.

Reviewing title reports and any needed paperwork to deal with exclusions or title issues.

Working with other agent for solid communication to ensure if an extension is needed it is easy to get.

Managing clients emotions.

Attending final walkthroughs and negotiate any last minute issues that come up.

Ensuring contract compliance, like leaving the fridge that was negotiated in the contract, before funding.

[Zyngawf]

Originally Posted by austin-steve

Well, you incorrectly assume that the typical buyer has a rolodex of home repair specialists and contractors.

If the inspector flags the HVAC, I have an HVAC company I've used for over 20 years that will come and evaluate the system and provide a written estimate of needed repairs. They drop everything and do this for me when called upon. Nobody has to pay them on site, they bill me later and I forward to the buyer.

I think you put too much trust in your buyers. Legally they do not have to pay for something if your name is on the invoice.

[Zyngawf]

Originally Posted by flymikee

Thanks Brandon for the feedback. I stated several times in my posts that I am just giving my opinion and experiences, isn’t that one of the main purposes of a forum? Besides, I don’t think that any reasonable person would perceive my comments to be facts. I don’t have a dog in this fight, but simply trying to kill time while I’m in Hawaii on a week-long conference. Sitting in a conference room for 5 hours straight listening to speeches can be quiet boring.

I already replied to your previous reasons and stated that I agree with you an attorney won’t be knowledgeable about repairs. However, I would go to a repairman for estimates before relying on the realtor’s estimates. Sure you might have experiences on the ball park ranges of what it might cost for something, but at the end of the day, most realtors are not “qualified” to give that estimate. Whether I need to negotiate for a repair credit or decide if it is a major issue, I would like some more ammo besides just my realtor’s words. Preferably a written estimate from an established contractor, repairman etc. I am surprised that people would go into a real estate transaction without proper legal representation, I would think I have much more to lose without having a good attorney. No offense, but if something went wrong during the deal and I have to violate the contract in one way or another, do I expect a realtor to give me legal advice?

I have yet to hear any real-life examples to counter my opinion that realtors aren’t as valuable after the contract has been signed. I believe Austin-Steve just gave some great examples, which I’ll address in a moment. I welcome any examples that someone can give me that shows the realtors value that I wouldn’t be able to get elsewhere, either from an attorney, contractor, mortgage…etc. after the contract has been signed.

In Hawaii and can find nothing better to do than this? Says something about you.