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Old 08-05-2008, 06:19 PM
 
Location: DFW
40,919 posts, read 48,858,158 times
Reputation: 54906

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M A Mom, I spent the morning with a buyer client who is buying new construction. We had an independent inspector out at my request early in the morning, then afterwords did the walk through with the builder and all of this took about 6 hours.

I had taken this buyer to an area they were totally unfamiliar & introduced them to the best builder in the market. He had a Spec home that I was able to get my folks an unbelievable price.

There is no way this buyer could have done all this or gotten the price by themselves. When we left this afternoon the wife gave me a big hug.

People who've worked with a great buyers agent understand the value, the others are clueless. When you do these things 20-50 times a year you tend to be able to give your buyer clients pretty sold advice.
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Old 08-05-2008, 06:41 PM
 
Location: Norfolk, VA
1,036 posts, read 3,960,093 times
Reputation: 515
Quote:
Originally Posted by sterlinggirl View Post
That's exactly what I'm saying. Hiring agents automatically inflates the price by 6%. If a seller needs to get out of a house, and needs a certain amount to pay off their mortgage, that extra 6% could mean the difference between a successful sale or eventual foreclosure.

The problem with this theory is... when there is no agent, both the buyer and seller feel that 6% savings is "theirs for the taking". Sellers usually do not reduce the price by 6% when selling FSBO, they assume that they will keep 6% by doing the work themselves. Along comes buyer and sees the FSBO sign, they think they can reduce price by 6% because no agent is getting paid.

In the end, many FSBOs I work with end up making a mess of the forms, do not do the proper due dillegence they should: the seller doesn't disclose all issues, pulls a price out of their "feeling" of the home worth, gets emotional about inspections, offers and comments and ticks off buyer or does other things that hurt the sale. Meanwhile the buyer doesn't know what inspections to do, what repairs to ask for, how to frame an offer, how to do a CMA, etc.

Can it be done alone? Yes. Would I sell my home FSBO? Possibly. You might save some money, but in the extra time it takes and carrying costs you pay, the marketing time/expense you need to take on, added work and time off to show the home, writer offers, negotiate, etc.... neither a seller or buyer ends up savings the 6% they thought they would.

We could all sew our own clothes for less than buying them in a store couldn't we? There are many things in life with a little work and time you could learn to do at a cheaper price... but is it a better value? Sometimes its better, easier and cheaper to pay a professional (emphasis on professional) to do a job in the long run than to try and become experts ourselves. Sure when the market was hot, any Joe Schmo could sell a home (Realtor or FSBO) but now is when the true professional will survive and thrive and those that had no business being in real estate will get out. Or at least that is my hope....
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Old 08-05-2008, 06:56 PM
 
Location: Norfolk, VA
1,036 posts, read 3,960,093 times
Reputation: 515
Not to bring back the US/UK debate... but: International Commission Comparison Misleading (http://www.realtor.org/government_affairs/competition/international_commission_comparison_misleading - broken link)

I know bentlebee is going on about lax licensing/education standards here in the US... well the UK has an even lower bar. So again, sometimes you get what you pay for.

This all ties together really. Cheaper is not always better, many times you get the quality of service you pay for. If you want a GOOD Realtor, loan officer or business professional that will provide vale for you maybe the approach isnt to treat all of them as scum and see who will work for a few pennies.

The approach should be to search for the QUALIFIED professionals that have experience, education and integrity and are worth the cost. A good CPA, financial advisor, contractor, electrician or other professional will cost you more than the guy with no licensing, bonding or insurance... but do you really want to save a few dollars for the potential risk?

A home is a huge financial investment and as mentioned the MINIMUM standards in the business are a joke (again, check out lending... the bar is even lower than real estate). Is the solution really to be okay with that as long as you pay 4.5% instead of 6%?? Or to pay 3% to a buyers agent only and take on increased liability and work and sell FSBO?

Instead of calling around and haggling on price, why not start by finding someone that is educated and has invested in their career? There are plenty of Realtors that go through advanced training at their own expense because they want to better serve their clients. As a consumer, it is your choice if you prefer working with the guy with 63 hours of education and 0 experience or the person with hundreds of hours of training, an advanced degree and years of experience.

I dont see any posts about that however... just price price price. Isnt focusing purely on price/rate what got us in the current housing mess?
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Old 08-05-2008, 07:04 PM
 
27,206 posts, read 46,544,323 times
Reputation: 15661
Well I'm not from England and never did any business there except from signing an International contract which has nothing to do with real estate.
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Old 08-05-2008, 07:13 PM
 
Location: Central Texas
20,958 posts, read 45,189,088 times
Reputation: 24737
So, what European countries HAVE you done real estate business in?
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Old 08-05-2008, 07:49 PM
 
27,206 posts, read 46,544,323 times
Reputation: 15661
Benelux
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Old 08-05-2008, 07:57 PM
 
27,206 posts, read 46,544,323 times
Reputation: 15661
I forgot to say that I was involved in real estate in the South of France and Spain...but that was for my in laws. I learned a lot from my in laws who made a lot of money by buying real estate years and years ago and how during that time frame the prices went through the roof and also have been very low.

I do believe that many people need good advise from professionals, but if you have knowledge than you can save a lot of money doing FSBO which I'm going to do next time...so far I have done all my listings with realtors and had to do most myself and learned a lot by doing that so although it was frustrating...thanks to these realtors because without them I wouldn't know what I know today, and didn't even had to sit in class for 63 hours!!!
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Old 08-05-2008, 08:36 PM
 
33 posts, read 119,298 times
Reputation: 47
Quote:
Originally Posted by middle-aged mom View Post
A cliche that remain true .......Knowledge and experience are priceless.

How many times in a lifetime does the average Joe buy property?
The thought of shaking them while screaming hysterically "I've done more sales this week than your entire family will do their whole lives!" has occurred to me.

One of those little fantasies I have.

And selling to people who bring their hovering, know it all helicopter mom and dad. Bleh. Cut the cord already!
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Old 08-05-2008, 08:38 PM
 
Location: Stallings, NC
124 posts, read 581,517 times
Reputation: 71
We sold our house in NJ. We interviewed three agents. We had each of them explain their marketing plan to sell our home; all were the same. 2 out of the 3 came down to 5%; the other one stayed firm at 6%. We went with one of the two @5% and sold our home in 7 months. In the current NJ market, we were happy it only took 7 months and not 1+ years. Now, the interesting point is that the one that stood firm would have priced the house at pretty much exactly what it sold. So, would it have sold quicker if we just went with her to begin with? Who knows.
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Old 08-05-2008, 10:32 PM
 
1,422 posts, read 2,295,501 times
Reputation: 1188
Quote:
Originally Posted by rcarrillo View Post
Not to bring back the US/UK debate... but: International Commission Comparison Misleading (http://www.realtor.org/government_affairs/competition/international_commission_comparison_misleading - broken link)

I know bentlebee is going on about lax licensing/education standards here in the US... well the UK has an even lower bar. So again, sometimes you get what you pay for.

This all ties together really. Cheaper is not always better, many times you get the quality of service you pay for. If you want a GOOD Realtor, loan officer or business professional that will provide vale for you maybe the approach isnt to treat all of them as scum and see who will work for a few pennies.

The approach should be to search for the QUALIFIED professionals that have experience, education and integrity and are worth the cost. A good CPA, financial advisor, contractor, electrician or other professional will cost you more than the guy with no licensing, bonding or insurance... but do you really want to save a few dollars for the potential risk?

A home is a huge financial investment and as mentioned the MINIMUM standards in the business are a joke (again, check out lending... the bar is even lower than real estate). Is the solution really to be okay with that as long as you pay 4.5% instead of 6%?? Or to pay 3% to a buyers agent only and take on increased liability and work and sell FSBO?

Instead of calling around and haggling on price, why not start by finding someone that is educated and has invested in their career? There are plenty of Realtors that go through advanced training at their own expense because they want to better serve their clients. As a consumer, it is your choice if you prefer working with the guy with 63 hours of education and 0 experience or the person with hundreds of hours of training, an advanced degree and years of experience.

I dont see any posts about that however... just price price price. Isnt focusing purely on price/rate what got us in the current housing mess?
Interesting that the link you posted is from.............the National Association Of Realtors - surprise surprise!!!!!

And includes some sweeping statements that bear no resemblance whatsoever to my experiences..............

I have always paid 1.25% commission and advertising (in local papers and online) has always been included in this fee.

And, of course they show homes!!!!!!!!!!!!!!!!!!!!

And look at the testimony - NAR Testimony - The Changing Real Estate Market - July 25, 2006 - obviously some issues needed to be addressed.......

Last edited by London Girl; 08-05-2008 at 11:13 PM..
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