San Diego Housing Bubble News and Analysis

I'm no pro but I just did it without an agent and have in the past, but to answer your questions, yes and no. Also no on Scenario B.

You can also use a discount agent, one that gets paid by the hour. Some of the realtors that post here will work that way. When you say "area" if you mean you know what tract or what street and which model then you probably only need transaction representation but if you want to look into houses within a school boundary or something, someone is going to have spend time opening up houses with you (they rarely look like they do on the internet when you get there). You can also contact the listing agent and tell them you are going to offer less, factoring in a smaller comission, but they will be representing you, they are just more inclined to lower both sides of the comission since they are getting both.

With regards to scenario B, if a listing expires then the seller is unrealistic because nobody bought it at the listed price, 6% isn't going to change that. IF you manage to get it for 6% less because you were without agents, you overpaid because if the difference between ask and market was only 6%, then it would have sold already. It's better to buy expired listing as repos six months later.

A smart person once told me that using a RE attorney for a home purchase is not a wise idea. The issues are more procedural and don't require an attorney (all the forms are standard, no legal review needed), plus attorneys are not really adept at managing the process of a home purchase. They could just get in the way. I agree with this logic.

I would recommend finding a good escrow agent. Such a person knows all the procedures and docs that need to be filed. Also, having an experienced mortgage broker and title agent helps, too. If everyone is making sure the next hurdle is crossed, it goes well.

I have done this before as a buyer, but only once and it went smoothly because our escrow agent knew what she was doing.

Using an agent that will do no shopping/previewing for you but who will manage the process isn't a bad way to go if you can find a realtor to do the deal for 1/2% or 1%.

I'd have to agree with that logic as attorneys are of very limited use in RE transactions. I was recently referred a RE transaction where the buyer found the property and I handled the negotiations and escrow for the buyer at a very reduced rate. It was a fairly high priced property and had they gone directly to the listing agent they would not have been able to bend the listing agent and sellers over a barrel like I did. Based upon the utterances of pain I've heard from both listing agent and seller, I negotiated a price between $75,000 to $100,000 below what would have been possible directly from the listing agent. The buyer was certainly able to and might even have been willing to pay a higher price but I saw no reason for them to do so.

I also uncovered inflated escrow charges that a layperson would have no way of knowing were unreasonable (saving buyer about $3,000). Best of all, I got to pull my signature move (grabbing a couple thousand dollar credit for no reason from a seller the day before contingency removal). By my rough estimation, I saved my client about 5 times what I got paid.

You know what they say about an attorney who represents himself in court? He has a fool for a client.

sd I didn't want to speak for you but I think I have seen in the past that you have posted there is a cost saving difference or some other thing when the buyer finds it himself and just brings you in for negotiations. I know I have been offered that from a few realtors on this site but wasn't sure if that was just because they've been reading my crap for a few years and it was a favor or if that was available to others. It does make sense to bring in a "ringer" at time of negotiations for a reduced rate. I had planned to do the same and would have with my most recent purchase if I had more than 5 minutes to decide and one of you guys wasn't so far away and didn't hate driving up here.

TG,
In the past I was not in the position to do what I am able to do today. There are aspects of negotiating and managing real estate transactions that only come when experience meets tenacity and intellect. You are correct in that I (or someone like me) would be of no value in the situation you were in. Every RE transaction is unique. Every single one of them. The crap I've figured out how to pull off with a smile on my face and actually get one back from the other side brings joy to heart. I love it when when the other side doesnt even realize how much they have been worked over.

I have always tended to be an opportunistic guy careerwise and months back figured out a way to jump ahead of the curve and most of my peers to create a new business model for myself. It has and continues to be far more lucrative than any of the prior years I have been in this whacked business. With any luck, I'll be sipping Mai Tai's every day in Oahu with my big brother. Until then, I am working harder and putting in far more hours than I ever have but it is paying off.

sd, I applaud your business model and think you may be on to something big. The internet has allowed buyers to refine their search and many question the need for a full service buyers agent that drives them around, sprinkle in the knuckleheads that crowded your profession and it makes the discerning buyer want to go it alone (which is a bad idea in 90% of the scenarios). I know that i have at least a dozen loyal lurker readers and i'd encourage them to contact you or other longtime piggie realtors who have proven their knowledge over the years. Most piggies should have their deals negotiated for them by someone like yourself and you should be compensated for that service. The service some people require doesn't fall into the old model and it will be guys like you that end up with the mai tais because you can see it before the rest.

Thank you and that is only one aspect of what I am doing right now. I have about 4 or 5 distinct market strategies I am working right now and going it alone has allowed me the flexibility to make things happen whether I am representing a buyer or seller in ways I couldnt before. With that said, I am fully aware that I am exploiting a niche market as the opportunistic mutha that I am.

T4L - If you've never bought before or will only be doing this once...to get the house you want, save yourself the trouble and use an agent. There's a lot of details and the business has a lot of opportunists in it. Lot's of money changes hands in a RE transaction, so there's a lot of hands out trying to get a little chunk as it goes by. It's really infuriating, but that's life. You'll learn from the experience. Pay close attention and ask a lot of questions. Accept no charges without a complete explination that you find acceptable. Good luck.

sdr did you break out from the big boys?

Si, but as I said I am simply exploiting a niche and still do not believe the big boys will be supplanted. Someday I will probably go back after I've milked this niche for what it is worth. The truth is, the most successful people I know in RE operate as true professionals and run an operationally sound business. They are all with the big boys and make far more than I ever will in this business because they are willing to whore themselves out with their pictures on Shopping Carts and Bus Stops. I just value my personal privacy too much to ever be so high profile. It's just not worth the money to me.

sdrealtor,
Did you really mean to say that true professionals in the real estate industry whore themselves out and are successful(make a lot of money)? How far would "whoring yourself out" get a professional like a Medical Dr.?

Ask Glen Kawisch or any of the Lasik Whores. How about all the Boob Factory Whores advertising in the Reader? Glance over at the Implant Dentist/Oral Surgeon Whores. Dont leave out the Personal Injury Lawhores.

Dont kid yourself Russell, There's plenty of "whoring yourself out" among other professionals.

Dont kid yourself Russell, There's plenty of "whoring yourself out" among other professionals.

Tell me about it. I was going to include that but the post was more fun(for me) without it. I found out about a new range or whoredom fully installed by the government, as third part benificiaries to my goals, when I tried to do a lot split. I am talking Biologists, Archeologists, residential fire plan developers and Surveyors, to do things that they admitted were useless as I negotiated contracts for my lot split. Approximately 10K a pop for their action.

Thanks for teeing one up for me Rus;)

You bet! Robert, anytime.

You bet! Robert, anytime.

You can just call me Bob....or Steve....or Harry...or whatever you like. Just call me;)

lmao!