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June 29, 2007 at 8:30 AM #62927June 29, 2007 at 9:28 AM #62898
Anonymous
GuestSteveno
Yes, have done this in CA, NC and SC! I have used forms for CA and SC direct from the RE sites that provided them for free. Also have more comprehensive form from one of the FSBO sites which is several more pages long and covers anything anywhere…but is usually too long for the agents to understand. So they transfer this to their forms. I typically go back and add my lines and concerns to their contracts afterwords anyways. My track record in the last purchase transaction is that I had 2 of 3 offers initially rejected and one accepted without any changes and one came back afterwards and wanted to accept, but too late (these were new home builders!). My other transactions in CA (sell) and NC (sell/buy)were accepted without any changes. In every transaction, I turned in the contract to the lawyer or escrow company (depending on the state) and closed normally like everyone else, even faster because I arrange my insurance, loan and closed the deal, even had to goose the attorney in SC myself when i felt he was falling behind. They could not believe my great 5.5% rate I got last month! (by the way call around on insurance, difference was half the price)
You should have seen the look on the brokers face when I said that I would turn in the contract and paperwork to the attorney myself! And the look on the attorney’s face when I brought in the contract and got such a low interest rate.
Agents always try to justify their existence by making the transaction sound complicated, etc. but they don’t do any of the complicated work, which is performed by the escrow and title folks for flat rates. Only thing agents have is the MLS and computers WILL change this industry forever. Some brokers have realized this and others will go the way of the DoDo with their heads in the sand. It is only a matter of time. why do you think the RE industry is one of the highest election donors?
The question to me was on contracts and I repeat: a napkin will suffice! You are free to write and cross out anything on the contract you wish and word it however you want. if you don;t like it, cross it out and write it in a way that makes sense to you, they can question you about it later, but they probably won’t, even if they do they will make it a little clearer for them or provide the wording they have seen someone else use. There is nothing special or required here, make it simple!
If you have the time and are able to show the house on your own, or know the area from living there for a while, DO NOT use an agent for anything! they are not needed and only get in the way and slow things up in 99% of the cases. You do not need a license to buy and sell real estate. I have done it in 3 states and my cousin has done it in 20! If any one tells you different, you can have their licenses revoked. every state has a RE commissioner who you can call and talk to for free. They can answer your questions, or try the FSBO sites, they have plenty of information as it pertains to each state.
Make your house the best looking for the best price, bring them in with signs, balloons and cookies. Take care of the legwork yourself when you are selling, computers make it too easy today. When you are buying, don’t trust anyone when you are bringing the cash, they are all out to get your money! That’s the facts! if you dislike anything, mention it and see how fast they take care of it. i went into closing and didn;t like one line, they changed it in 15 minutes and had new contracts ready to sign! When buying, do the same legwork based on cost per sq ft. Take a tape measure and measure the house to get the square footage before you make an offer. compare it to everything around. Do some homework, you are about to make the biggest purchase of your life. Don’t leave this to anyone else.
There is no service that an agent can perform or justify that is worth paying an extra 2 years mortgage for! Spread the word and get these middle people out of our hair, the RE industry needs an overhaul and people need to realize that the service is not worth the cost, time and headache that it causes. They have also caused part of the bubble , by talking people into higher prices or bad loans they could not afford.
This bubble should get rid of at least a half million RE agents. I believe that if We the PEOPLE take responsibility, do this small amount of legwork, sell and buy our own homes and tell everyone how easy it is, then we can work this stupidity out of the system.
Final note: The homes I sold and bought are in the 300-600K range, the NC home was purchased for my in-laws and I was out of the state and coaching them over the phone. We also helped them sell their property FSBO on the phone! I am an engineer with an MBA and BSME. They did not have a computer and are not computer literate, I wrote all of the contracts and offers myself, I also found and co-signed their loan to get them a better fixed rate (<6% even with bad credit). For financing I used Etrade and Wells Fargo, although quote all the others when looking.
God Bless
StevenOJune 29, 2007 at 9:28 AM #62945GuestSteveno
Yes, have done this in CA, NC and SC! I have used forms for CA and SC direct from the RE sites that provided them for free. Also have more comprehensive form from one of the FSBO sites which is several more pages long and covers anything anywhere…but is usually too long for the agents to understand. So they transfer this to their forms. I typically go back and add my lines and concerns to their contracts afterwords anyways. My track record in the last purchase transaction is that I had 2 of 3 offers initially rejected and one accepted without any changes and one came back afterwards and wanted to accept, but too late (these were new home builders!). My other transactions in CA (sell) and NC (sell/buy)were accepted without any changes. In every transaction, I turned in the contract to the lawyer or escrow company (depending on the state) and closed normally like everyone else, even faster because I arrange my insurance, loan and closed the deal, even had to goose the attorney in SC myself when i felt he was falling behind. They could not believe my great 5.5% rate I got last month! (by the way call around on insurance, difference was half the price)
You should have seen the look on the brokers face when I said that I would turn in the contract and paperwork to the attorney myself! And the look on the attorney’s face when I brought in the contract and got such a low interest rate.
Agents always try to justify their existence by making the transaction sound complicated, etc. but they don’t do any of the complicated work, which is performed by the escrow and title folks for flat rates. Only thing agents have is the MLS and computers WILL change this industry forever. Some brokers have realized this and others will go the way of the DoDo with their heads in the sand. It is only a matter of time. why do you think the RE industry is one of the highest election donors?
The question to me was on contracts and I repeat: a napkin will suffice! You are free to write and cross out anything on the contract you wish and word it however you want. if you don;t like it, cross it out and write it in a way that makes sense to you, they can question you about it later, but they probably won’t, even if they do they will make it a little clearer for them or provide the wording they have seen someone else use. There is nothing special or required here, make it simple!
If you have the time and are able to show the house on your own, or know the area from living there for a while, DO NOT use an agent for anything! they are not needed and only get in the way and slow things up in 99% of the cases. You do not need a license to buy and sell real estate. I have done it in 3 states and my cousin has done it in 20! If any one tells you different, you can have their licenses revoked. every state has a RE commissioner who you can call and talk to for free. They can answer your questions, or try the FSBO sites, they have plenty of information as it pertains to each state.
Make your house the best looking for the best price, bring them in with signs, balloons and cookies. Take care of the legwork yourself when you are selling, computers make it too easy today. When you are buying, don’t trust anyone when you are bringing the cash, they are all out to get your money! That’s the facts! if you dislike anything, mention it and see how fast they take care of it. i went into closing and didn;t like one line, they changed it in 15 minutes and had new contracts ready to sign! When buying, do the same legwork based on cost per sq ft. Take a tape measure and measure the house to get the square footage before you make an offer. compare it to everything around. Do some homework, you are about to make the biggest purchase of your life. Don’t leave this to anyone else.
There is no service that an agent can perform or justify that is worth paying an extra 2 years mortgage for! Spread the word and get these middle people out of our hair, the RE industry needs an overhaul and people need to realize that the service is not worth the cost, time and headache that it causes. They have also caused part of the bubble , by talking people into higher prices or bad loans they could not afford.
This bubble should get rid of at least a half million RE agents. I believe that if We the PEOPLE take responsibility, do this small amount of legwork, sell and buy our own homes and tell everyone how easy it is, then we can work this stupidity out of the system.
Final note: The homes I sold and bought are in the 300-600K range, the NC home was purchased for my in-laws and I was out of the state and coaching them over the phone. We also helped them sell their property FSBO on the phone! I am an engineer with an MBA and BSME. They did not have a computer and are not computer literate, I wrote all of the contracts and offers myself, I also found and co-signed their loan to get them a better fixed rate (<6% even with bad credit). For financing I used Etrade and Wells Fargo, although quote all the others when looking.
God Bless
StevenOJune 29, 2007 at 9:31 AM #62900sdrealtor
ParticipantJJ,
Just to clarify an obvious hyperbole on your part.“the $40k that goes to agents at the end of an average sfr north county transaction.”
The average transaction is somehwere between 600K and 700K.
The average commission rate is 2.5% to each broker.
That is 15,000 to 17,500 to each broker.
The typical experienced agent gets about 70% of that which is 10,500 to 12,250.
An experienced agent working full time should sell 10 to 12 homes per year. Thats a good one, maybe 10 or 20% at best. Most only sell 2 or 3.
After paying all their expenses, self employment taxes, benefits only a few earn six figure incomes from RE. Not exactly what I would consider a great income for someone in sales and at the top of their profession.
June 29, 2007 at 9:31 AM #62947ParticipantJJ,
Just to clarify an obvious hyperbole on your part.“the $40k that goes to agents at the end of an average sfr north county transaction.”
The average transaction is somehwere between 600K and 700K.
The average commission rate is 2.5% to each broker.
That is 15,000 to 17,500 to each broker.
The typical experienced agent gets about 70% of that which is 10,500 to 12,250.
An experienced agent working full time should sell 10 to 12 homes per year. Thats a good one, maybe 10 or 20% at best. Most only sell 2 or 3.
After paying all their expenses, self employment taxes, benefits only a few earn six figure incomes from RE. Not exactly what I would consider a great income for someone in sales and at the top of their profession.
June 29, 2007 at 9:36 AM #62901ParticipantStevenO
Thats great. I commend you for what you have accomplished. You are essentially an agent working without a license. The knowledge and experience you have ammassed is not typical of the layperson. Its out there for anyone that wants it and you clearly did. If I were you i would keep doing it because its obviously working for you.sdr
June 29, 2007 at 9:36 AM #62949ParticipantStevenO
Thats great. I commend you for what you have accomplished. You are essentially an agent working without a license. The knowledge and experience you have ammassed is not typical of the layperson. Its out there for anyone that wants it and you clearly did. If I were you i would keep doing it because its obviously working for you.sdr
June 29, 2007 at 9:41 AM #62906lostkitty
ParticipantJJ wrote: "the $40k that goes to agents at the end of an average sfr north county transaction."
sdr, you wrote: The average transaction is somehwere between 600K and 700K. The average commission rate is 2.5% to each broker. That is 15,000 to 17,500 to each broker.
I'm not seeing a whole lot of difference between what he wrote and you are writing. It is still +/-40k that the seller isnt keeping! Besides, he didnt say "each" agent.
June 29, 2007 at 9:41 AM #62954ParticipantJJ wrote: "the $40k that goes to agents at the end of an average sfr north county transaction."
sdr, you wrote: The average transaction is somehwere between 600K and 700K. The average commission rate is 2.5% to each broker. That is 15,000 to 17,500 to each broker.
I'm not seeing a whole lot of difference between what he wrote and you are writing. It is still +/-40k that the seller isnt keeping! Besides, he didnt say "each" agent.
June 29, 2007 at 9:48 AM #62911ParticipantQuick math lesson LK:
5% x 600,000 = 30,000
30,000 does not equal 40K
5% x 700,000 = 35,000
35,000 does not equal 40K
Also, the money does not go to the agent it goes to the broker. What goes to the agents (which is what he mentioned) is 21,000 to 24,500 (which isnt 40k either)
The money that the broker keeps supports the overhead associated with running the system.
My point was simply, that everyone does a quick back of the envelop calculation and thinks Realtors are making a killing. The truth is far from that. Very few actually earn a decent living. The real money in this bubble was made in the lending industry.
June 29, 2007 at 9:48 AM #62960ParticipantQuick math lesson LK:
5% x 600,000 = 30,000
30,000 does not equal 40K
5% x 700,000 = 35,000
35,000 does not equal 40K
Also, the money does not go to the agent it goes to the broker. What goes to the agents (which is what he mentioned) is 21,000 to 24,500 (which isnt 40k either)
The money that the broker keeps supports the overhead associated with running the system.
My point was simply, that everyone does a quick back of the envelop calculation and thinks Realtors are making a killing. The truth is far from that. Very few actually earn a decent living. The real money in this bubble was made in the lending industry.
June 29, 2007 at 12:32 PM #62959ParticipantOh come on sdr… close enough… and you knew what I meant…
Not all properties are 600k or 700k either. Especially not those you are selling to the very special people that you represent.
We are talking generalizations, but if you want to split-hairs, have at it…
Face it… you’re WAY overpaid for your work, and it probably irks you to see it conversed about here.June 29, 2007 at 12:32 PM #63007ParticipantOh come on sdr… close enough… and you knew what I meant…
Not all properties are 600k or 700k either. Especially not those you are selling to the very special people that you represent.
We are talking generalizations, but if you want to split-hairs, have at it…
Face it… you’re WAY overpaid for your work, and it probably irks you to see it conversed about here.June 29, 2007 at 12:43 PM #62965NotCranky
Participantsdr I think the original post posed a little bit of a baited question and we are lucky to have not gotten slaughtered . Kudos to piggingtonians for mostly showing restraint.Perhaps it is because they realize they will be using SDR when the time comes?
June 29, 2007 at 12:43 PM #63014Participantsdr I think the original post posed a little bit of a baited question and we are lucky to have not gotten slaughtered . Kudos to piggingtonians for mostly showing restraint.Perhaps it is because they realize they will be using SDR when the time comes?
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