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In some markets (AZ for example) a homeowner can contract with a broker for a flat fee JUST to get the listing in the MLS (the broker performs no other services). I had a friend who used it successfully and her fee for the service was around $650....a savings of nearly $16,000 on her 275K sale price.
I have also read about Redfin www.redfin.com which supposedly offers far less commission percentage (as low as 1.5%, depending on the area). I don't know if they operate in the TB area...anyone know?
I think this is the wave of the future.
Thank you for posting the Redfin link. I had not heard of it before.
Great map search and very user friendly. Even has FSBO.
You can always contact listing agent and see the house with him/her.
Bentlebee is not her, it's him.
I believe if you contact the listing agent they would be happy to show it to you and then take both sides of the 3% commission. When I lived in Seattle I remember calling the listing agent and seeing the house directly thinking I could get a better deal that way. After I saw the house and wanted to write an offer the listing agent said that she would not write an offer lower than full price and that she would not lower the price by 3% either since in her words "she was not going to work for free and by writing the offer she is entitled to the 3% buyer side commission in addition to the 3% seller side. A real piece of work.
My mistake on Bentlebee.. Either way, I still respect the content and advise he provides to the board.
I, too noticed it this week when doing a neighborhood analysis. We need balance for everyone who wants to buy and sell. I just wonder where all those people are going to come from for the new construction. Lennar had the whole back page of the local Realtor news full of ready now inventory.
Lennar is the anti-christ of home builders.. They slash every last tree, build only the highest density housing (who wants to live in a rat maze?), and cut every possible corner during construction to maximize their profits... No thank you..
I believe if you contact the listing agent they would be happy to show it to you and then take both sides of the 3% commission. When I lived in Seattle I remember calling the listing agent and seeing the house directly thinking I could get a better deal that way. After I saw the house and wanted to write an offer the listing agent said that she would not write an offer lower than full price and that she would not lower the price by 3% either since in her words "she was not going to work for free and by writing the offer she is entitled to the 3% buyer side commission in addition to the 3% seller side. A real piece of work.
My mistake on Bentlebee.. Either way, I still respect the content and advise he provides to the board.
We went though listing agents many times. I learned not to give them any hopes by saying upfront - we are working on our own and don't need any representation including theirs. If house is listed for some time without offers, they are happy to sell it. We always refused to sign any sort of paperwork with showing listing agents too. And for the commissions, I know some sellers include reduced fee schedule in their agreement with their agent if listing agent represents both parties, so instead of 6% sellers are paying 4.5%.
And I know real local stories when houses were getting sold to people without buyers agents for less than people with agents were offering just few weeks earlier.
More slickery.. Or should I say "slick activity" ??
A house was bought new 9 months ago for $381,000
6 months after it was bought, it was put on the market for $515,000
No one bought it even after several rounds of price reductions..
If guess would-be buyers did not think a person should attempt to sell
their house for $134,000 above what he/she paid for it just 6 months prior.
So the slickery you ask? They take the home off the market for 2 days
and expunge all prior price reductions. In Redfin, prior reductions show up
as stars as shown below:
We as realtors can see the entire history as it is not going to be erased from the MLS.
This is going on a lot, especially with short sales and foreclosures.
We recently came across a beautiful home sold in 2013 for $ 369K and now listed for $ 480K and the previous seller is one of the few who had a short sale and did a full disclosure and most likely since it w's kind of a very good deal at $ 369K in that area but with roof leaks, old A/C"s, etc.
Now we are almost 2 years after that sale and if the new owners had replaced the roof and placed new AC's and spent more money on the home I would agree the prices going up would be reasonable to pay off but they did NOTHING!
Now the roof has no life left, the ceiling shows the old leaks so probably mold has been growing between the ceiling and the roof.
The agent is comparing the house with a perfect house in the area which is similar model but with more sqft and new roof, etc.
The agent also has given 3 different statements about the age of the AC's and we always go by permits that are needed. No permit for a new AC then we don't take it as they were new and/or we won't value anything for the AC's since we have to figure out if the units are even matching items or that parts may not even be from the same brand.
However we have seen many more homes like that and they were selling like cookies and often I wonder how happy the buyers are when they figure it out that they really over paid.
If they went into the deal with open eyes then it is great for the sellers. Free markets and people don't have to buy but if the knowingly buy and over pay then who is to judge that deal.
It is just the other deals with misrepresentation which is going on a lot and increasing prices so much and mostly out of state buyers seem to find the houses cheap and buy them without knowledge.
We bought many homes without a realtor over here prior to me having my license and we were under the assumption that we would get a better price but so far we haven't seen it happen. Builders don't discount for not having a realtor and we see how happy builders are with realtors as they treat them with respect since they know they can sell more and need them and also often if something happens the realtor can step in and help.
Keep in mind a selling agent doesn't have to disclose everything if they are a transaction agent and if they are a single agent they only work in the best interest for the seller.
Buyers don't pay for the realtor and only in a very few cases is a seller wiling to discount if no realtor is present for the buyer. Usually sellers rather keep that money themselves.
For sale by owner sales are usually so overpriced that the "discount" is a nice thing but still paying way to much and for sale by owner sellers often don't disclose what is going on with the house or just items that they know won't matter but other items they rather leave out and since they are not licensed they believe they can get away with that and are smarter then the rest of the players in the field. Buyer's be aware and do your due diligence.
Quote:
Originally Posted by GulfCoastGuy
More slickery.. Or should I say "slick activity" ??
A house was bought new 9 months ago for $381,000
6 months after it was bought, it was put on the market for $515,000
No one bought it even after several rounds of price reductions..
If guess would-be buyers did not think a person should attempt to sell
their house for $134,000 above what he/she paid for it just 6 months prior.
So the slickery you ask? They take the home off the market for 2 days
and expunge all prior price reductions. In Redfin, prior reductions show up
as stars as shown below:
We as realtors can see the entire history as it is not going to be erased from the MLS.
This is going on a lot, especially with short sales and foreclosures.
We recently came across a beautiful home sold in 2013 for $ 369K and now listed for $ 480K and the previous seller is one of the few who had a short sale and did a full disclosure and most likely since it w's kind of a very good deal at $ 369K in that area but with roof leaks, old A/C"s, etc.
Now we are almost 2 years after that sale and if the new owners had replaced the roof and placed new AC's and spent more money on the home I would agree the prices going up would be reasonable to pay off but they did NOTHING!
Now the roof has no life left, the ceiling shows the old leaks so probably mold has been growing between the ceiling and the roof.
The agent is comparing the house with a perfect house in the area which is similar model but with more sqft and new roof, etc.
The agent also has given 3 different statements about the age of the AC's and we always go by permits that are needed. No permit for a new AC then we don't take it as they were new and/or we won't value anything for the AC's since we have to figure out if the units are even matching items or that parts may not even be from the same brand.
However we have seen many more homes like that and they were selling like cookies and often I wonder how happy the buyers are when they figure it out that they really over paid.
If they went into the deal with open eyes then it is great for the sellers. Free markets and people don't have to buy but if the knowingly buy and over pay then who is to judge that deal.
It is just the other deals with misrepresentation which is going on a lot and increasing prices so much and mostly out of state buyers seem to find the houses cheap and buy them without knowledge.
We bought many homes without a realtor over here prior to me having my license and we were under the assumption that we would get a better price but so far we haven't seen it happen. Builders don't discount for not having a realtor and we see how happy builders are with realtors as they treat them with respect since they know they can sell more and need them and also often if something happens the realtor can step in and help.
Keep in mind a selling agent doesn't have to disclose everything if they are a transaction agent and if they are a single agent they only work in the best interest for the seller.
Buyers don't pay for the realtor and only in a very few cases is a seller wiling to discount if no realtor is present for the buyer. Usually sellers rather keep that money themselves.
For sale by owner sales are usually so overpriced that the "discount" is a nice thing but still paying way to much and for sale by owner sellers often don't disclose what is going on with the house or just items that they know won't matter but other items they rather leave out and since they are not licensed they believe they can get away with that and are smarter then the rest of the players in the field. Buyer's be aware and do your due diligence.
Thanks again for your insightful disclosure about sellers and listing agents whom misrepresent
or hide issues with the homes they put on the market. I truly believe the real estate market is
full of corruption and dishonest listing agents seeking only the highest commissions at any cost.
(Not unlike a used car salesman) I am sure there are plenty of very honest realtors out there also.
Keep posting your helpful tips on here as it will help newcomers find you for representation.
We found that owners selling direct (FSBO) are very very honest about the condition of their homes (talking about people who live in the homes, not flippers).
It's the same with buying a used car...I'd much rather buy from an individual than from a used car salesman as I find the individual seller to be more honest.
Any insinuation that buyers have any special or easy recourse against their realtor after a sale is patently false.
I bear no grudge against individual agents, but I feel the flat commission regardless of the home' price, days on market, expense to sell, to be out of line.
The only people that realtors have succeeded in protecting is themselves, via their tight control of the MLS. But as more folks use Zillow for direct listing and buying, the more likely realtors will have to reconsider their predatory commissions.
We found that owners selling direct (FSBO) are very very honest about the condition of their homes (talking about people who live in the homes, not flippers).
It's the same with buying a used car...I'd much rather buy from an individual than from a used car salesman as I find the individual seller to be more honest.
Any insinuation that buyers have any special or easy recourse against their realtor after a sale is patently false.
I bear no grudge against individual agents, but I feel the flat commission regardless of the home' price, days on market, expense to sell, to be out of line.
The only people that realtors have succeeded in protecting is themselves, via their tight control of the MLS. But as more folks use Zillow for direct listing and buying, the more likely realtors will have to reconsider their predatory commissions.
Right on, excellent post. A flat-fee commission structure would not only be more fair to the
seller who pays it, it would also remove all incentive for the listing agent to cheat, misrepresent, or
over inflate the house's asking price. I like the idea. But the Realtor's Association will never go
for it because it reduces their "take".
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No thank you..
