Buying a house, here's how to beat reatlors at their game.

[Traumahawk]

Originally Posted by PFT_128
Beat the Realtors at their "game?" Translation: "I'll complain and whine when my company tries to cut my pay to make an extra buck, but I see no problem in trying to screw over the professional real estate agents." Typical American hyprocrisy. Realtors aren't playing a "game," they are earning a living by providing a valuable service.

Translation: "I'll preach to everyone about ethics because I'm a die hard union rep, just disregard the fact I've screwed my fellow pilots by paying for what should have been a paid seat". Typical Gulfstream PFT'er hypocricy.

I gets old, but it's still so true. You paid for the right seat in a 1900, that a Professional Pilot could have been making a buck in, and you are gonna stick up for "Professional Real Estate Agents" 3% ?!?!
OH Thats Rich. Thats just special.


You are out of control. Oh, but the BS "they are earning a living" line almost had us. Good One.


TILT

P.S. This in no way means REA's don't deserve the money they make, just pointing out yet another steaming pile of fly infested dung dumped out by PFT_128.

 

[ex j-41]

Fee

Originally Posted by MD80DRVR
Wrong again. The Brokers get 1/2 or more of that amount, leaving the Realtors with only $6,600 to divide up.

Wrong again,
I got 2%, so your numbers don't add up. Broker/realtor or realtor who keeps more from his broker; either way their is plenty of money to go around.

Realtors all have different contracts with their brokers.
Just like all airlines have different contracts with ALPA.

Some pay $1000/month just to be listed with a broker but keep 100% of
the shared commission. Other pay less and the broker gets some of the
commisson or some brokers will get a good chunk of the commission but
do not get any monthly dues.

It does not cost the buyer one cent to buy a house with a realtor. The
seller is the one that pays the commission.
The listing agent has to pay for all advertising, marketing, open houses etc...
And to put an ad in the paper nowadays is not cheap. An agent can
easily spend up to $1000 a house on advertising without selling it.

If i was a buyer i would not think twice about getting a real estate agent.
Then i am protected by the laws of the state. The broker and real estate
agents are then taking all legal responsibility for the property i am buying.
If you find a good honest real estate agent they understand that you have
friends and relatives and that if they get a great deal for you, you are more
likely to refer friends.

The flipside is that if you do not list your home with a realtor you just cut
your chances of selling a house by 90%. Yes you can sell it but what
real estate agent is going to show your house when you do not have a
commission for them? What you want them to show and sell your house
without paying a commission? or a 1% at that? It won't work.

Sell your home with "For Sale by Owner"......$150,000
You pocket $150,000

Sell your home with a realtor...... $175,000
Pay out a 6% commission......$10,500
You pocket $164,500

Ok the spead might not be that big but it will be close and even if it would
cost you $1000 bucks wouldn't you rather have someone else take the
liability?

 

[FishandFly]

It does not cost the buyer one cent to buy a house with a realtor. The
seller is the one that pays the commission.

I don't know anything about selling homes, but this statement is completely false.

The commission costs the buyer simply because without it the house would be less expensive.

For instance, in my purchase if I would not have dealt with the realtors as stated above it would have COST me $5,000.

Instead, I SAVED $5,000

 

[Beach Bum]

It does not cost the buyer one cent to buy a house with a realtor. .

Sell your home with "For Sale by Owner"......$150,000
You pocket $150,000

Sell your home with a realtor...... $175,000
Pay out a 6% commission......$10,500
You pocket $164,500

In this example the same house just cost $25,000 more to the buyer.

 

[UCF Aviator]

Now is the best time to buy! With inventories so high, people are having to make deals to sell. Builders are offering major incentives right now due to these high inventories. It may not be a good time to sell, but it's definitely a good time to buy.

In response to another post saying a realtor will get $13,200 for selling a $220,000 home, you must be smoking crack. Here is a quick lesson on commissions. Let's say you list your home with XYZ realty for 220K at 6%. Your agents job is to market the home to get people to come see it. Most likely, YOUR agent will not sell the property. Most likely, an agent from ABC realty will bring in the buyer. Now that 6% commission just got split between the two. Now your agent has to split his 3% with his broker and will only walk away with 1.5% or about $3,300. Same goes for the buyers side. That is why most agents will not split the commission with you, they don't have much to split.

Now is not the best time to buy. Reason being what you just stated, inventory is very high but many homes are currently overvalued in many markets. The housing market is not like the stock market, however. It takes time for supply and demand to take effect. Give it another year and this indifference between the value and the oversupply of homes in addition to the foreclosures resulting from the inreased interest rates and the prices will drop about 20% or more. Then it will be the right time to buy. Just give it some more time.

 

[FishandFly]

Now is not the best time to buy. Reason being what you just stated, inventory is very high but many homes are currently overvalued in many markets. The housing market is not like the stock market, however. It takes time for supply and demand to take effect. Give it another year and this indifference between the value and the oversupply of homes in addition to the foreclosures resulting from the inreased interest rates and the prices will drop about 20% or more. Then it will be the right time to buy. Just give it some more time.

HUH? Show me one year in the past 40 years when housing has decreased by 20%... It doesn't exist, and there have been a lot tougher times than what we're going through right now. i.e. current times aren't tough.

 

[FishandFly]

I thought what I did was new and innovative.. Guess not.

This realty company in Florida just GIVES you the entire 3% and you pay them their fee.

http://www.floridarebaterealty.com/FAQs.php

1. Where does all the CASH REBATE FRR offers come from?
When we act as your buyer agent on ANY MLS listed home, we are entitled to a commission from the seller which is usually 3% of the purchase price. We receive this commission at closing and rebate it in full to you less our service fee.

 

[i'mbatman]

I thought I'd offer a little insight. I am a real estate agent in NYC. A lot of what has been said on here is true. If you are willing to look around on your own and sell on your own by all means go for it. I'm very interested to know how long it will take most of you to give up your weekends, nights, etc to have open houses. Ok, so lets say you actually get an offer from an open house....GREAT! lets go to contract......the buyer lines up financing, etc, etc. Well they call to tell you they need some time to line up financing or they can't get a down payment. Now you wasted maybe 2-4 weeks with these schmoes b/c they are UNQUALIFIED....I don't walk out the door with a client unless I know for sure they can qualify for a mtge. now the FSBO has to start all over again.

FSBO's do sell without realtors but it is pretty rare. Also, 6% may be the norm but everyhting is negotiable. EVERYTHING! In NYC wear the market is tight you rarely see lower than 5%.

What it boils down to is this....if you have the energy and time and motivation to buy or sell a house and don't want to pay 6% than do it yourself. If you DO NOT have those things...list it with a REALTOR.

No one forces you to list or buy with a broker.

 

[turbodriver]

All the interest only and negative amortization loans are going to adjust to much higher payments in the next year or two, pricing people out of their houses and they won't have the equity to refi. The party is over and it's going to be ugly.

Scott

That is exactly what I'm waiting for. I bought my house in one of the top ten areas of growth as far as school districts are concerned. (No, it not a major metropolitan area either) Those interest only loans are for suckers. I feel for the people who got suckered into one without realizing that real estate is a cyclical as the airline business. I have a decent amount of equity after only a year and a half. Once the guy in the big house across the way gets into trouble when the fixed rate period on his interest only loan is up, I'll swoop in and scoop up his house when he's desperate to sell.

Just sit back and watch, it WILL be ugly.

 

[Slice121]

You get what you pay for...I had a realtor when I purchased my last place(great dude, btw, if anyone is looking in the Annapolis/DC area). The sellers had listed there home with a discount broker, basically they provide the listing to the MLS only. I put a contingent offer on the house and the discount broker, takes the listing off the MLS instead of listing it with a KO. The contingency for me fell through(I couldn't rent my old place) and the contract expired. Except the house was off the market the entire time! My realtor proposes a deal an additional two months later and I'm in. Bottom line, they needed to sell, this cheap broker screwed up, and it ended up costing them more or as much as if they would have paid a full service broker. Great for me, but they didn't save much end game and it took an extra 4 months to sell the house.