Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That seems to be SUCH a very difficult concept for many folks to grasp.
But, it also opens the door for entrepreneurs to compete. And to learn how thin the margins are for non-profit MLSs to maintain their services to members and stay financially viable.
1% cash back to buyer acting as their own buyers agent".
Let me word it differently. What I was attempting to describe was a situation where the buyer gets a discount or benefit for not using a buyers agent. Maybe something like "Seller to pay $2500 toward closing costs - ask for details." Those details would be that they get the 2.5k if a buyers agent fee is not owed and they pay full price. Guessing some buyers would want to go for that. If they don't want to pay full price -- then that $2,500 becomes negotiable.
Essentially the same thing as 1% cash back on a 250k house. Financially, a buyer getting a 1% rebate from a broker at closing nets them the same - though the specific wording is different.
The context is putting it in the public MLS comments to attract buyers.
"Let me word it differently. What I was attempting to describe was a situation where the buyer gets a discount or benefit for not using a buyers agent. Maybe something like "Seller to pay $2500 toward closing costs - ask for details." Those details would be that they get the 2.5k if a buyers agent fee is not owed and they pay full price. Guessing some buyers would want to go for that. If they don't want to pay full price -- then that $2,500 becomes negotiable.
Essentially the same thing as 1% cash back on a 250k house. Financially, a buyer getting a 1% rebate from a broker at closing nets them the same - though the specific wording is different.
The context is putting it in the public MLS comments to attract buyers.
Some MLS's don't allow contingent compensation to be in the MLS. Ours doesn't. So I think it would be an issue to have closing costs contingent on not using a buyer agent. At least in my MLS. Remember the point of the MLS is cooperation between agents so there are rules against things that wouldn't be seen as being cooperative. It isn't a public use site.
No. That would work only in states where an Attorney close is normal. No where in the west where Attorney's are not generally involved in a normal close.
Even in Attorney Close states I doubt very many Attorneys are expert at market value.
When I posted asking about no comps for determining market value I expected lots of answers explaining how agents come to to determine this. All I got was that it can only be done if you have a condo or tract home and lots of comps. If it isn't easy there was no real method to help determine this so how can agents say they are experts at market value and owners or attorneys wouldn't be?
When I posted asking about no comps for determining market value I expected lots of answers explaining how agents come to to determine this. All I got was that it can only be done if you have a condo or tract home and lots of comps. If it isn't easy there was no real method to help determine this so how can agents say they are experts at market value and owners or attorneys wouldn't be?
In general determining market value is relatively straight forward given you are familiar with an area, have access to the MLS and a reasonably active market. Actually can be more accurate then a formal appraisal - which suffers from constraints upon the process that can easily throw it off in a dynamic market.
It does involve judgement and is not without problems. At the moment we are dealing with a glut of over-priced listings in a particular sub class. We even contributed to it by representing a client who bought a home that was almost 15% over priced. But there is now clearly a contest...will the buyers move up or will the sellers come down or both? It has been on since June so it will be interesting to see.
One of the things that can make it difficult is we often deal with view and golf course lots. They complicate life. Can almost double the value of some homes. But some have only small impact. Knowing what applies is very difficult for anyone not working this market heavily.
If you get into rural areas, ultra custom homes or such lots of luck. I think everyone who values such places uses a large BS component. And you discover quickly that replacement cost is not a good way to arrive at value.
When I posted asking about no comps for determining market value I expected lots of answers explaining how agents come to to determine this. All I got was that it can only be done if you have a condo or tract home and lots of comps. If it isn't easy there was no real method to help determine this so how can agents say they are experts at market value and owners or attorneys wouldn't be?
There is a real method to determine what any home is worth. You can do it, if you have taken the appropriate courses for appraising a properties value as I did.
Owners and attorneys do not have the training to understand how to do a proper value analysis of the property.
Example: We live in a 3,700 sq. ft. very contemporary stucco sided home. 4 levels, and soaring walls in the living room, with peak at 25 feet, tall moss rock pillars, and fireplace, etc. with a soaring window wall all the way up. Lots of large windows and a fantastic view of the Rocky Mountains. Upper story loft over the living room, where we keep exercise equipment from a eclipsical machine to a top of the line tread mill . Sits on 5 level acres across a county road from the high priced area of town. Barn and stables. White vinyl rail fencing. There is absolutely not another home for many, many miles to compare it to. But it is not difficult to determine the market value of it if you know how.
A year ago we needed a formal appraisal for estate reasons, and had one done be a top appraiser. I had done my evaluation and missed it by less than $2,000, as the appraiser had rounded up to even $5,000 implement. I had ended for exact amount not rounded. Being in real estate brokerage from 1972 till I retired I am experienced. There is no way that a normal owner or attorney could have placed a value on this home. It is truly one of a kind. But when two very knowledgeable people appraised it, they can both be right on the money, and one just increased it a couple of thousand dollars to round it out to closest $5,000 break point. We own the home free and clear of loans, and are not inclined to sell it, but still needed a formal appraisal done.
Owners only listing the price at what they want for it, is a big problem in real estate. Two things happen.
1: If the property is much overpriced, it does not get shown often, and does not get bought at that price.
2: Someone that is ignorant of values comes along and makes an offer on it,and it is marked as sold. When the appraiser comes in and puts a true value on it, it is below the sale price, and the owner either loses the sale or lowers the price to the appraised value.
Me thinks the OP was just trolling when he started this topic as his mind was already made up. Either way GLWTS it's your property. Merry Christmas to all!
When I posted asking about no comps for determining market value I expected lots of answers explaining how agents come to to determine this. All I got was that it can only be done if you have a condo or tract home and lots of comps. If it isn't easy there was no real method to help determine this so how can agents say they are experts at market value and owners or attorneys wouldn't be?
I am comfortable with my estimate of value of almost any property in my market. There is a good chance that I've actually been in the comps I'll be using to estimate the value of yours and possibly even involved in the sales. If I haven't and the MLS info isn't detailed enough, I have a good enough relationship with the agents in my market to give them a call and ask details of the sale. It may mean a good chunk of change to you to know that a certain sale included a post-closing leaseback, tractor, furniture or some other concession not part of the public record.
When I posted "have your attorney do it" I was kidding. All the posters who said all you need is an attorney overlook the fact that most attorneys won't touch the issue of determining fair value even if they had the resources to do so. You might save a few thousand in commission but you better be spot on with knowing the fair value of your property. That, in my opinion, is the most crucial part of the process for most sales and a mistake can be costly.
Yea becasue $500 to post an ad is the same thing as free
Also $10,000 is the same as $500 right. Let the people who actually OWN the MLS decide these things, just because you pay dues/rights to the MLS does not make you the site owner.
The intellectual dishonesty is deep with realtors they just dont get it.
Quote:
Originally Posted by MikeJaquish
That seems to be SUCH a very difficult concept for many folks to grasp.
But, it also opens the door for entrepreneurs to compete. And to learn how thin the margins are for non-profit MLSs to maintain their services to members and stay financially viable.
Pulling comps is not rocket science. If the property is unique you can simply find another property like it somewhere else in the nation and compare 2 cookie cutter houses in those two markets to get the multiplyer and there you go.
You guys act like selling real estate is the manhatten project, give it a rest.
Quote:
Originally Posted by 1insider
I am comfortable with my estimate of value of almost any property in my market. There is a good chance that I've actually been in the comps I'll be using to estimate the value of yours and possibly even involved in the sales. If I haven't and the MLS info isn't detailed enough, I have a good enough relationship with the agents in my market to give them a call and ask details of the sale. It may mean a good chunk of change to you to know that a certain sale included a post-closing leaseback, tractor, furniture or some other concession not part of the public record.
When I posted "have your attorney do it" I was kidding. All the posters who said all you need is an attorney overlook the fact that most attorneys won't touch the issue of determining fair value even if they had the resources to do so. You might save a few thousand in commission but you better be spot on with knowing the fair value of your property. That, in my opinion, is the most crucial part of the process for most sales and a mistake can be costly.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
