Do we need realtors?

[newguy]

I was just wondering, do we need realtors? This isn’t a knock on SD Realtor or sdrealtor, but I was just wondering what realtors do that we can’t do. I know most piggingtonians know the market better than most. But I also understand that most people are NOT piggingtonians so I can see how realtors can help give advice. But for us piggingtonians, what can they do for us? Can only realtors do the paperwork? I only wonder because the commission (in my opinion) is relatively high, especially with rising home prices.

[SD Realtor]

I asked the same question several years ago. My answer was no I don’t need one so I got my license and found a broker to work with.

SD Realtor

[SD Realtor]

I asked the same question several years ago. My answer was no I don’t need one so I got my license and found a broker to work with.

SD Realtor

[JJGittes]

Access to CAR forms can be a little difficult. (Legalforms.com sells decent alternative forms, but the escrow companies may want the CAR forms.) But if you shop around, a lot of escrow companies will provide the Cal. Purchase Agreement to a seller and buyer that walks in the door ready to go. There are a few other forms, like the disclosure forms that are important too. Things are also a bit easier now though with the Natural Hazard Disclosure that comes through the escrow company.

Also, re: selling, MLS access is the other biggy. But I suppose you can go with a flat fee listing, and put a 1% to buyers agent on it. Just don’t expect much cooperation from the RE community. They don’t like the flat fee listers, and won’t be motivated much by the 1% to bring their buyer-clients (whom they are working in the best interest of, right?) by your house. In any event, you will still get the widest marketing thru the MLS via realtor.com, and the other brokerage sites that pick up the MLS.

Also, don’t forget CRAIGSLIST, I know two people who sold their home in SD thru craigslist to relocating techies from the bay area, who use it extensively, and don’t much like the traditional 5-6% ($40-48k for a typical decent SD house!) vig that goes to RE agents.

[JJGittes]

Access to CAR forms can be a little difficult. (Legalforms.com sells decent alternative forms, but the escrow companies may want the CAR forms.) But if you shop around, a lot of escrow companies will provide the Cal. Purchase Agreement to a seller and buyer that walks in the door ready to go. There are a few other forms, like the disclosure forms that are important too. Things are also a bit easier now though with the Natural Hazard Disclosure that comes through the escrow company.

Also, re: selling, MLS access is the other biggy. But I suppose you can go with a flat fee listing, and put a 1% to buyers agent on it. Just don’t expect much cooperation from the RE community. They don’t like the flat fee listers, and won’t be motivated much by the 1% to bring their buyer-clients (whom they are working in the best interest of, right?) by your house. In any event, you will still get the widest marketing thru the MLS via realtor.com, and the other brokerage sites that pick up the MLS.

Also, don’t forget CRAIGSLIST, I know two people who sold their home in SD thru craigslist to relocating techies from the bay area, who use it extensively, and don’t much like the traditional 5-6% ($40-48k for a typical decent SD house!) vig that goes to RE agents.

[betting on fall]

I think the future of real estate will be people listing and finding homes without realtors, but then hiring a lawyer, escrow company or out of work realtor to do the closing process for a flat or hourly fee.

Yes, realtors still hold a monopoly on the MLS, which is still the best place to list homes or get detailed info on for-sale homes. But every year more and more useful information is available for free at other website, and this tread will inevitably continue. The “value” of the MLS will continue to fall.

The only remaining value of a realtor is expertise in managing the paperwork and hassle of the buying and selling process. The process is complex enough that expertise is required, and I don’t want to waste the time educating myself on a process I will engage in once every 10 years or so.

But why is paperwork expertise worth 3%? A lawyer would happily do it $200 an hour, probably about $4,000 total. And we think lawyers are overpaid?

Future of real estate: No more full service realtors. Instead “sale consultants” who charge a flat fee to get your home ready to sell and list. Hourly-paid “agents” who take you on home tours with their lock-box key or who babysit your open house. Then the paperwork expert who manages the actual transaction. All for less than $10,000 per transaction total.

[betting on fall]

I think the future of real estate will be people listing and finding homes without realtors, but then hiring a lawyer, escrow company or out of work realtor to do the closing process for a flat or hourly fee.

Yes, realtors still hold a monopoly on the MLS, which is still the best place to list homes or get detailed info on for-sale homes. But every year more and more useful information is available for free at other website, and this tread will inevitably continue. The “value” of the MLS will continue to fall.

The only remaining value of a realtor is expertise in managing the paperwork and hassle of the buying and selling process. The process is complex enough that expertise is required, and I don’t want to waste the time educating myself on a process I will engage in once every 10 years or so.

But why is paperwork expertise worth 3%? A lawyer would happily do it $200 an hour, probably about $4,000 total. And we think lawyers are overpaid?

Future of real estate: No more full service realtors. Instead “sale consultants” who charge a flat fee to get your home ready to sell and list. Hourly-paid “agents” who take you on home tours with their lock-box key or who babysit your open house. Then the paperwork expert who manages the actual transaction. All for less than $10,000 per transaction total.

[El Jefe]

If you have a little bit of free time on your hands and a 4 year degree then get your brokers license. The 4 year degree gets you out of any work experience requirement for a brokers license and the brokers license lets you belong to the MLS in CA without being a member of the CAR. The brokers license also lets you shop your own mortgages as a mtg broker, effectively giving yourself wholesale rates.

The money you save on 1 RE transaction will more than pay for an entire lifetime of MLS access & license dues.

[El Jefe]

If you have a little bit of free time on your hands and a 4 year degree then get your brokers license. The 4 year degree gets you out of any work experience requirement for a brokers license and the brokers license lets you belong to the MLS in CA without being a member of the CAR. The brokers license also lets you shop your own mortgages as a mtg broker, effectively giving yourself wholesale rates.

The money you save on 1 RE transaction will more than pay for an entire lifetime of MLS access & license dues.

[JJGittes]

$4000 is way high for what you’d pay a lawyer. We are talking a total of half a dozen forms. $1000, $2000 max.

[JJGittes]

$4000 is way high for what you’d pay a lawyer. We are talking a total of half a dozen forms. $1000, $2000 max.

[SD Realtor]

Sometimes I wonder why I bother addressing posts like these but then I tell myself that I am just trying to help people out with facts rather then speculative posts that seem to run rampant.

El Jefe – Do you know what a lifetime of MLS fees adds up to? Do you even know how much it costs to join SDAR so that you have access to the MLS? Do you know the difference in fees if you are a salesperson verses a broker? Probably you do not.

Also do you think having a brokers license will alone give you access to be able to shop with all the lenders and be able to have leverage with them to get your own loan?

I take it you have done this before or else you wouldn’t advise others to do it correct? I don’t mean to come down on you and maybe you do know the answers to all of those questions. If you do, then I apologize. If not then I do not.

Currently a salesperson pays 132 a quarter for MLS fees and a couple hundred more for the annual payment. I will point out other costs and considerations below.

*******

I try to post facts when I post. When I do not then I use the statement in my opinion or IMO.

*******

When you become a licensee, (after you have taken the appropriate classes or have previous college credits) and you have passed the state test, in order to buy or sell real estate, be it for yourself or for others you need to hang your license with a broker. Alternately you can go ahead and obtain your brokers license as well. Now when you have this, in order to gain access to the MLS you need to join the local association of Realtors. In San Diego that is SDAR the San Diego Association of Realtors. Every county has their own association. Joining the association is actually beneficial contrary to what all of you believe. As an electrical engineer I shared your skepticism, believe me. However when you do join you pay a membership fee to get access to the MLS and you can get a Sentriock key to show homes as well. Another thing that many people never consider would be E&O (errors and ommissions insurance) which you will need to obtain.

Also, I have used a real estate attorney before so I do think is curious to see the speculative posts on the cost of that service.

I am not saying that the current system is good. Like I said I got tired of paying commissions as well so I did do it myself. I went through the entire process and I know others that have as well. I am not saying the current system is good or equitable or anything of the sorts. If you don’t like don’t use it. You can sell a house yourself, you don’t need to put it on the MLS or offer any commission. You can call Jeff Karchin and he charges like 500 bucks or something like that to put you on the MLS.

Radelow himself just posted the other day and he is going to buy and not use an agent, he is just going to tell the listing agent to cut the price by the buyers commission and he will represent himself.

Rustico and others – no slants here…

[SD Realtor]

Sometimes I wonder why I bother addressing posts like these but then I tell myself that I am just trying to help people out with facts rather then speculative posts that seem to run rampant.

El Jefe – Do you know what a lifetime of MLS fees adds up to? Do you even know how much it costs to join SDAR so that you have access to the MLS? Do you know the difference in fees if you are a salesperson verses a broker? Probably you do not.

Also do you think having a brokers license will alone give you access to be able to shop with all the lenders and be able to have leverage with them to get your own loan?

I take it you have done this before or else you wouldn’t advise others to do it correct? I don’t mean to come down on you and maybe you do know the answers to all of those questions. If you do, then I apologize. If not then I do not.

Currently a salesperson pays 132 a quarter for MLS fees and a couple hundred more for the annual payment. I will point out other costs and considerations below.

*******

I try to post facts when I post. When I do not then I use the statement in my opinion or IMO.

*******

When you become a licensee, (after you have taken the appropriate classes or have previous college credits) and you have passed the state test, in order to buy or sell real estate, be it for yourself or for others you need to hang your license with a broker. Alternately you can go ahead and obtain your brokers license as well. Now when you have this, in order to gain access to the MLS you need to join the local association of Realtors. In San Diego that is SDAR the San Diego Association of Realtors. Every county has their own association. Joining the association is actually beneficial contrary to what all of you believe. As an electrical engineer I shared your skepticism, believe me. However when you do join you pay a membership fee to get access to the MLS and you can get a Sentriock key to show homes as well. Another thing that many people never consider would be E&O (errors and ommissions insurance) which you will need to obtain.

Also, I have used a real estate attorney before so I do think is curious to see the speculative posts on the cost of that service.

I am not saying that the current system is good. Like I said I got tired of paying commissions as well so I did do it myself. I went through the entire process and I know others that have as well. I am not saying the current system is good or equitable or anything of the sorts. If you don’t like don’t use it. You can sell a house yourself, you don’t need to put it on the MLS or offer any commission. You can call Jeff Karchin and he charges like 500 bucks or something like that to put you on the MLS.

Radelow himself just posted the other day and he is going to buy and not use an agent, he is just going to tell the listing agent to cut the price by the buyers commission and he will represent himself.

Rustico and others – no slants here…

[El Jefe]

in order to gain access to the MLS you need to join the local association of Realtors

This statement is in fact blatantly false… California law requires all Califronia MLS systems to be accessible to any state licensed broker or appraiser, regardless of NAR/CAR/SDAR affiliation. In San Diego the SDAR will give you access to Sandicor by simply filling out the form and chacking the box that you are unaffiliated… Feel free to review MLS application yourself, page 4…

http://www.sdar.com/pdf/memebership/broker/BrokerAppCombined2007.pdf

And by my calculations, the 3% you could save on a 700K avg SD transaction by representing yourself would be 21K. At ~800/yr for brokers license with MLS access, that 21K will last ohhhhhhhhhhh, 25 years.

[El Jefe]

in order to gain access to the MLS you need to join the local association of Realtors

This statement is in fact blatantly false… California law requires all Califronia MLS systems to be accessible to any state licensed broker or appraiser, regardless of NAR/CAR/SDAR affiliation. In San Diego the SDAR will give you access to Sandicor by simply filling out the form and chacking the box that you are unaffiliated… Feel free to review MLS application yourself, page 4…

http://www.sdar.com/pdf/memebership/broker/BrokerAppCombined2007.pdf

And by my calculations, the 3% you could save on a 700K avg SD transaction by representing yourself would be 21K. At ~800/yr for brokers license with MLS access, that 21K will last ohhhhhhhhhhh, 25 years.

[Author]

Posts