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Well, I believe the commission compensation is the reason so many self-identify as a salesperson. After all, the ones that act to maximize their commission will generally earn more than the ones that do not under this system, and the ones that earn less are less likely to stay in this business. But I guess we can't really find out for sure unless they ever change the system. I'm not holding my breath, but maybe if they lose enough market share to Redfin and the Internet.
It may be a chicken/egg issue, once one changes the other will too. Challenging either draws a similar reaction so they are definitely intertwined. Consumers can be somewhat proactive in choosing who they want to represent them (if they can find that needle in the haystack), current MLS rules prevent consumers from doing much about the compensation side (barring a DOJ Antitrust action).
Let's hope Austin023's agent actually knows how to structure an offer on the kind of properties he/she wants. If the agent typically only sells turn-key properties, they may not be of much assistance in the due diligence and contract process on a fixer upper.
It may be a chicken/egg issue, once one changes the other will too. Challenging either draws a similar reaction so they are definitely intertwined. Consumers can be somewhat proactive in choosing who they want to represent them (if they can find that needle in the haystack), current MLS rules prevent consumers from doing much about the compensation side (barring a DOJ Antitrust action).
Let's hope Austin023's agent actually knows how to structure an offer on the kind of properties he/she wants. If the agent typically only sells turn-key properties, they may not be of much assistance in the due diligence and contract process on a fixer upper.
Very good point to make. It is not that uncommon for agents to be not be to sure of certain situations, especially where it comes to things like short sales or other atypical things.
While I do not anticipate buying any place that has any really odd situation (none are short sales/foreclosures) I suppose I could run into something like a failed or not completed Title V (Massachusetts septic regulations) or subdivided property, etc. (I am course trying to avoid any septic issues, which can easily run 20-30K).
The one house I did look at was on a lot being subdivided from a larger portion, in which the survey required by the town had not been done yet by the seller (also it had not been reassessed for an adjusted tax rate). You would probably have to make an offer structured a very specific way I surmise.
I am in the middle of moving 1000 miles back to a fairly rural area of the Northeast, about 3 hours either way from NY and Boston. I lived there several years ago while in school and still visit fairly often, so I know the area quite well.
I have been in touch with buyers agent up there for about a month now and will be heading up within the next few weeks or so to start looking in person; I am using cash only, which she is aware of and looking at places roughly in the 150K-250K range, which is average for the area. I could go somewhat lower or higher out of that but right around 200 is mostly what I have been interested in.
I had told her I really am looking to buy something older (ie before 1900--very common there), 2 floors and 3 bedrooms, 1 or 2 baths---very reasonable for the price/market---something in need a fair amount of work is ideal as whatever I get I will want to make it the way I wish, so turn-key houses are not at all necessary for me (and the added premium you pay is not either). Foreclosures are very rare in that area, btw so that is not being considered.
Well, even with my prodding she seems reluctant to send me listings of that category beyond very minor issues (cosmetic ones apparently). I could easily handle a place in need of $50,000 (though I did not tell her that, only a fixer upper etc). When I do inquire of various listings I like I am told, "its a nice house, etc etc but always with a warning it probably needs X amount of work, etc etc"....I know that, I expect that!
But yet the listings being sent to me keep on as turn key tiny little ranches and other places that just do not interest me for various reasons--I wont want to pay a premium for some house I will probably be making various changes to in any case. I give feedback, always politely.
I am in my early 30s, own and have owned houses before in that region (where I am native to). Is there some kind of embarrassment some agents have in showing certain houses? or is it more just trying to push up the purchase amount I'd be likely to make? (honestly many of these I have asked about are in the lower $200s, but would be more in the lower 3s if in pristine condition, so not sure what is going on here).
Is it possible that there aren't an abundance of the types of homes you're looking for? I'm definitely no expert, but a $50000 budget doesn't seem like enough to cover some of the issues you could run into with the type of home you're looking for.
Is it possible that there aren't an abundance of the types of homes you're looking for? I'm definitely no expert, but a $50000 budget doesn't seem like enough to cover some of the issues you could run into with the type of home you're looking for.
The area in question has quite an abundance of the sort of house I am looking for---most of the housing stock is pre-WWII and many are over 100 years old so not an issue by any means. In most of the northeast this is the case.
A lot of old farmsteads in the area I am moving to; they often sell cheaply because they need updating, etc. The ones I am interested in are lived in currently save for one, so these are not 'wrecks' that have been sitting for years or are severely damaged (though there are quite a few of those too). One place I saw the listing for had been vacant for 25 years---old post and beam house but it was a horrible mess, would need a complete rehab to the bare bones. Not much of its old details were even present due to vandals.
The ones I am looking at are not nearly that bad, but need generally speaking, the aforementioned improvements/repairs etc....well, 50K could certainly cover much of what needs to be done in some cases, others it might not...has to be taken on a case by case basis. Older houses often have surprises---Ive lived/owned enough to know that
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