Do you skip real estate agents when you buy property?

[Endymion]

When dealing with selling or buying property, do you skip the realtor and go For Sale By Owner, saving thousands of dollars? Who else here is into that besides me?

 

[Tousi]

I will, Endy, if and when we do....or consult with Help U Sell who charges a flat rate and we do the rest, mainly keeping the place up and arranging for all showings by appt.

 

[pek1]

When dealing with selling or buying property, do you skip the realtor and go For Sale By Owner, saving thousands of dollars? Who else here is into that besides me?

You may save money, but your house will remain on the market longer, not be listed on the MLS and may even be overpriced for the neighborhood. Plus, do you know how to do all the paperwork yourself without consulting with an attorney? The vast majority of people don't know what to do or what occurs at closing, what to bring, what not to bring, et al. Are you prepared to go into a closing all alone? This is what the agent is for.

 

[Endymion]

You may save money, but your house will remain on the market longer, not be listed on the MLS and may even be overpriced for the neighborhood. Plus, do you know how to do all the paperwork yourself without consulting with an attorney? The vast majority of people don't know what to do or what occurs at closing, what to bring, what not to bring, et al. Are you prepared to go into a closing all alone? This is what the agent is for.

A good point, but I think I'm gonna have to disagree. Big time.

First, the MLS is not exclusive to realtors. There are enterprises that will list your home on the MLS for a fraction of the overall fee a realtor charges. This cuts down on the market time too.

Then most of the legal documents are boilerplate templates that you can get off the internet for a nominal fee! Realtors don't actually sit down and create new contracts with new language every time they get a new client. You don't need to pay enormous amounts of money to have the property appraised either.

On top of that, if you still want an attorney, you can get legal help at a much smaller cost. A 200k home at 6% is $12,000 in fees to the realtor. No good, fair lawyer + MLS listing fee goes anywhere near $12,000. But like I said, you don't really need the lawyer (outside of double-checking) if you play the boilerplates.

Personally, if I wasn't so busy with my other projects, I'd even consider starting up a business just consulting small-time Tim on the process, saving tons of money for him.

That's something you could do, actually. I see more profit in starting an FSBO consultancy than in being a realtor. For one, you'll have more liberal compensation structures for your employees than the limitations placed on realtors and loan officers who file a DBA statement. On top of that, you don't market yourself as a realtor and you appeal to a growing target market. Besides, with a well-planned marketing campaign with the slogan, "Beat the realtor's rates!" you're going to appeal to many. "Jane Doe, Century 21" on a shopping cart doesn't hold so much compared to your edge on the market.

You have all the skills and you seem like an ethical, helpful guy. You could probably hitch up with the SBA and get Pek1 FSBO, LLC running. I've already been giving some advice to budding entrepreneurs on the same thing.

 

[JLFWildKat]

Or you can always buy on contract with an owner. Save money that way maybe?

When dealing with selling or buying property, do you skip the realtor and go For Sale By Owner, saving thousands of dollars? Who else here is into that besides me?

 

[Endymion]

Or you can always buy on contract with an owner. Save money that way maybe?

Good suggestion! Though it's a little more complicated.

 

[Endymion]

Pek,

The companies doing MLS listings for FSBO sellers are many. Here's one:

https://www.housepad.com/VALUEMLS/index.html

 

[GalaxyAngel]

Okay..

When I using MLS listing for houses mostly okay okay but Real Estate agent's commission fee cost 3 or 4%, plus lawyer fee + Land Transfer everything details fees + House Inspection + delay paperwork negotiation other customer's Real Estate to arrange confirmation the deal or not deal about the $ values cost buyer/seller whatever..

Wasting my time.. We did made an offer but other customer's real estate agent want push us pull up the earliest date.. We decide withdrawl for EVERYTHING.. Fed up twice times.. I knew Real Estate agent anxouis want MONEY so badly themselves for profit likely 3 or 4 or more commission cost closing values..

For example: If you seller your house value 250k. The buyer made an offer 246k wait for 5 days processing. (My mind wasting time wait for another 5 days) Received the paper says.. counter offer back.. The seller want 249k and want closing date is July 5th. How do you feel ? The buyer isn't ready for closing date on July 5th.. you really want that house so badly??? How can you deal w/your real estate agent and customer's real estate too. The seller have to pay two real estate's 50% half of fee cost of your house purchase.. 249k .. take away about 8,300 dollars for agent's fee commission.. left balance 240,700.00 The mortgage will have 249k.. depends the mortgage percent of rate. Plus down payment depend on the percent rate cost.

Depend lawyer's fee cost 2,300 to 3,000 (where you live area)
House Inpsection's fee cost 250 to 400 (where you live area)
Land Transfer/Title and etc cost $500 to 3,000 depend the house value.

Do you willing like this ?

I prefer without Real Estate Agent..

Heres's..
The owner's house cost 169k
I made an offer the house cost 155k
The owner accept my offer.

Down payment: 6750 for closing date on Sept 15th
Lawyer fee: $300 bux
Transfer land/title and etc cost $2,050 dollars
House Inspection $218.00 dollars..

Which one better save your pocket.. The private owner or Real Estate Agent's fee extra more commission depend where you live.



I'm glad My very first experience gotten by private owner.. Thanked for this everything made me lot of saved thousand bucks!

By the way, Good Luck!

**Edit** you look into the newspaper anykinds.. if you see "the private owner's ph # and nice picture on it" You have to call the private owner and arrangement for tour visit house anytime you want..

Real Estate Agency..looking for your dream house.. found the house.. you have no taste this house.. Keep contuine hunting hunting... wasting my time..

I've been there for a year.. damn it.. what more.. we have to pay Real Estate agent's fee due contracts.. piece of shit!

 

[pek1]

Pek,

The companies doing MLS listings for FSBO sellers are many. Here's one:

https://www.housepad.com/VALUEMLS/index.html

I'm well aware of that, Endymion. On a personal level (not a real estate agent talking), I would still go through a realtor because they have all the training and know how of the laws. I have noticed that fizbo's (short for "For Sale By Owner) are turning to real estate agents, which is a good thing, but, seriously, the market is full of houses (hence a buyer's market -- about 5.1 houses per buyer) and the ones that are out there are way over priced.

 

[pek1]

I've been there for a year.. damn it.. what more.. we have to pay Real Estate agent's fee due contracts.. piece of shit!

I would have gotten you a house that you liked in the area where you want to live at a price you can afford with the terms acceptable. If you signed my contract, you paid me to find those for you. If you don't sign, I won't help you one bit. Works the same way in selling. But, as I said earlier, the houses are too many and way too much. Drop the price and the house will sell in a reasonable amount of time. Keep it high, enjoy your house, it won't sell . . . not for your price.

By the way, if you break a contract, you have to pay, depending on broker and the arrangement. If you received an offer (meaning you accepted it) and then said "no" to it, you broke the contract which means, of course, you can get sued to uphold the contract. If you have signed a buyer's rep agreement to pay agent and then later refused, yes, you can get sued for the enforcement of the contract. If I don't get your house sold, I am not paid. However, I have the list of people who have looked at your house and, if any of those people approach you within a certain time frame after the end of my listing, I can legally enforce the contract because I showed them the house and the contract does state that. There are other examples, but just these for now.

 

[pek1]

Or you can always buy on contract with an owner. Save money that way maybe?

It's called a "Contract For Deed." It is not a long term contract, as there is a cut off time by which either you have a loan to pay off the owner or you move out.

 

[Endymion]

I'm well aware of that, Endymion.

I'm glad that you're aware that FSBO people can list on the MLS. But why did you tell me that "but your house will . . . not be listed on the MLS" in your first post when in fact, FSBOs can list on the MLS?

On a personal level (not a real estate agent talking), I would still go through a realtor because they have all the training and know how of the laws.

Is this information really worth $12,000? Not really, especially when there are firms that make the information available for much cheaper prices. You can even have your hand held and guided through the entire process for much cheaper than a realtor's fees.

That $12,000 is 6% on a $200k home.

 

[me_punctured]

If I had $12,000 in my pocket, I'd invest it! Information should not come at such an exorbitant price.

Endymion, if you don't mind me asking... why do most people go to real estate agents instead of going FSBO if they can save thousands of dollars?

 

[Endymion]

If I had $12,000 in my pocket, I'd invest it! Information should not come at such an exorbitant price.

Endymion, if you don't mind me asking... why do most people go to real estate agents instead of going FSBO if they can save thousands of dollars?

Good question, me_punctured!

I say it's because of the same reason why people go to banks to save their money, instead of checking out better ways.

The first thing that comes to mind when someone says, "Save your money" is the bank. Likewise, the first thing that comes to mind when people say, "Buy a house" is a realtor. Marketers spend billions of dollars in many industries to make that kind of an effect. When you bring something to the forefront of a customer's mind, you can make big money. (Just like "Get the Kleenex if you have a cold!").

When you think of buying a car, you go to a car dealership. Bet you didn't know that you can blow off the salesman and actually get a car at a great rate by talking to the right people from GM, Toyota, or wherever.

Because most people think of a realtor first, they go to the realtor. But just like the bank, the realtor isn't always the best option. People who have $10,000 in the bank will actually have LESS than $10,000 after a few years of inflation. Technically, you will have more money, but the value will be less than $10,000. The interest the bank offers is very, very low compared to inflation.

These same people, if they place their money in bonds, CDs (which I'm not too fond of either), and the like, actually end up with more money.

That doesn't stop them from going to the bank, though. Economists know we're not rational creatures, we make decisions on all sorts of things, some of which lead us to bad decisions and some of which lead us to good decisions.

Hence the realtor phenomenon.

 

[Y]

Okay..

When I using MLS listing for houses mostly okay okay but Real Estate agent's commission fee cost 3 or 4%, plus lawyer fee + Land Transfer everything details fees + House Inspection + delay paperwork negotiation other customer's Real Estate to arrange confirmation the deal or not deal about the $ values cost buyer/seller whatever..

Wasting my time.. We did made an offer but other customer's real estate agent want push us pull up the earliest date.. We decide withdrawl for EVERYTHING.. Fed up twice times.. I knew Real Estate agent anxouis want MONEY so badly themselves for profit likely 3 or 4 or more commission cost closing values..

For example: If you seller your house value 250k. The buyer made an offer 246k wait for 5 days processing. (My mind wasting time wait for another 5 days) Received the paper says.. counter offer back.. The seller want 249k and want closing date is July 5th. How do you feel ? The buyer isn't ready for closing date on July 5th.. you really want that house so badly??? How can you deal w/your real estate agent and customer's real estate too. The seller have to pay two real estate's 50% half of fee cost of your house purchase.. 249k .. take away about 8,300 dollars for agent's fee commission.. left balance 240,700.00 The mortgage will have 249k.. depends the mortgage percent of rate. Plus down payment depend on the percent rate cost.

Depend lawyer's fee cost 2,300 to 3,000 (where you live area)
House Inpsection's fee cost 250 to 400 (where you live area)
Land Transfer/Title and etc cost $500 to 3,000 depend the house value.

Do you willing like this ?

I prefer without Real Estate Agent..

Heres's..
The owner's house cost 169k
I made an offer the house cost 155k
The owner accept my offer.

Down payment: 6750 for closing date on Sept 15th
Lawyer fee: $300 bux
Transfer land/title and etc cost $2,050 dollars
House Inspection $218.00 dollars..

Which one better save your pocket.. The private owner or Real Estate Agent's fee extra more commission depend where you live.



I'm glad My very first experience gotten by private owner.. Thanked for this everything made me lot of saved thousand bucks!

By the way, Good Luck!

**Edit** you look into the newspaper anykinds.. if you see "the private owner's ph # and nice picture on it" You have to call the private owner and arrangement for tour visit house anytime you want..

Real Estate Agency..looking for your dream house.. found the house.. you have no taste this house.. Keep contuine hunting hunting... wasting my time..

I've been there for a year.. damn it.. what more.. we have to pay Real Estate agent's fee due contracts.. piece of shit!

I do not understand Why did you have to
pay Real Estate's fee ? for what ?

 

[pek1]

I do not understand Why did you have to
pay Real Estate's fee ? for what ?

You pay the agent to look for property for you . . . contigent upon finding feasible and acceptable property that you want or pre-qualify for. To pre-qualify, you go to your local bank and tell them you want to buy a house, they pull your credit report after you've filled out paperwork for a loan, then they tell you the dollar amount that you can receive for a loan. They tell you, for example, that you are qualified for $185,000 (low here in Minnesota). Then either you look on your own for a house (meaning you drive up and down streets until you find one that you like), then you either call the listing agent or broker or you call your own real estate agent in. When you do that and agree that you want this agent to look for a house for you, you will sign an agreement, which is an employment contract for, say, xx amount of days. This contract states that you will pay the agent the agreed upon amount IF you close on a property in the time frame. Yes, in negotiations to obtain an agent, you can state the percentage. For example, if you're looking to buy a property for $185,000 then the commission to that agent would be, say, six percent (6%). Okay, take the $185,000 and multiply that by 6% and you come up with $11,000. Once the contract is signed, it is legally enforceable, regardless of the purchase price. If the purchase price is less than the $185K, then the 6% times that price. I used six percent as an average, because some will go as high as seven percent, but not more than that. My own broker charges 5.5%, so it all depends on what is charged by the various agents, as they set their own percentages. Obviously, if the purchase price is higher than the $185K, then the dollar amount, NOT the percentage, is higher.

It all boils down to the fact that you are paying me or your agent to find a house for you, using your specifications only, in the time frame specified. Let's say that you gave me sixty days to find you a house (not close on one). If I come to you on day 61, the contract is null and void. During that entire period, it is enforceable. The vast majority of people buy their homes this way. If you, as my client, sees a FSBO house, then I have to ask permission of that house owner to let you see it, otherwise, you can't get in. However, if you deal with the FSBO on your own and you are still under my contract, you still have to pay me, because you and I are under contract.

Does this make more sense?

 

[pek1]

If I had $12,000 in my pocket, I'd invest it! Information should not come at such an exorbitant price.

So you think people owe you things for free? You're better off investing in real estate because it is equitable. What makes you think your $12K in stock is going to be worth that much tomorrow, next week, next month, next year?

 

[pek1]

You can even have your hand held and guided through the entire process for much cheaper than a realtor's fees.

I charge extra for this! Seriously, why would you want to sit through it and not know what's going on or what the process will take? When you go to a close, with an agent you know ahead of time EXACTLY what to expect, what to bring (money, and how much) and your agent is the one that's supposed to have the headaches for you to get through the hurdles. If all your agent is doing is sitting around and drinking coffee, in another room no less, he/she isn't doing their job.

Furthermore, suppose you're the buyer and I'm representing you. After the close is when I get paid by my broker. When you are moving in, I will be stopping by your home to make sure that everything is okay while you're moving in. Suppose the power is off, that is agent's job. All the lightbulbs are gone, that's agent's job to go get some. Granted, some agents would balk about this, but if they want repeat business, they'd do it. I'd do it regardless.

 

[Endymion]

So you think people owe you things for free? You're better off investing in real estate because it is equitable. What makes you think your $12K in stock is going to be worth that much tomorrow, next week, next month, next year?

I think me_punctured is trying to say that $12,000 is a bad investment when given to a realtor compared to more financially feasible property transaction options.

I will agree with you one one thing. Historically, real estate is the best investment. There are regions near where I am now that have returns of up to 30% per year! There are also some pretty lousy regions as well.

 

[Endymion]

I charge extra for this! Seriously, why would you want to sit through it and not know what's going on or what the process will take? When you go to a close, with an agent you know ahead of time EXACTLY what to expect, what to bring (money, and how much) and your agent is the one that's supposed to have the headaches for you to get through the hurdles. If all your agent is doing is sitting around and drinking coffee, in another room no less, he/she isn't doing their job.

Furthermore, suppose you're the buyer and I'm representing you. After the close is when I get paid by my broker. When you are moving in, I will be stopping by your home to make sure that everything is okay while you're moving in. Suppose the power is off, that is agent's job. All the lightbulbs are gone, that's agent's job to go get some. Granted, some agents would balk about this, but if they want repeat business, they'd do it. I'd do it regardless.

LOL on charging extra. Let's bring this back into the ballpark. Let's list alternatives to realtors and how they work. ( source: http://www.realestatejournal.com/buysell/agentsandbrokers/20050511-hagerty.html?refresh=on )

Traditional Realtor (like Century 21, etc.) -

Seller pays a commission, typically 5% to 6%, on the sale price. The commission is divided among the agents for the buyer and seller and their brokerage firms.

Alternatives to realtors

Discounted Commissions
The seller's agent typically receives a 1% to 2.5% commision and the buyer's agent 1% to 3%.

ZipRealty (www.ziprealty.com); Foxtons (www.foxtons.com)

Fee for Service
Fixed prices for a menu of services, purchased separately. Services include listing homes and negotiating contracts.

Help-U-Sell (www.helpusell.com); Assist-2-Sell (www.assist2sell.com)

Rebates
Cash or gift cards for using a participating agent. Agents share part of their commission with the buyer or seller.

RealEstate.com (www.realestate.com); Monstermoving.com (www.monstermoving.monster.com)

For Sale by Owner Listings, supplies and advice for people who sell their own homes. Services include listings on Web sites and magazines. Supplies include yard signs.

ForSaleByOwner.com (www.forsalebyowner.com); Owners.com (www.owners.com)

Now tell me, with all these extra options available, why we should still go with realtors, even when a) the prices are cheaper and b) we can still get the same services you tell us about?