Real Estate Model Is Broken – Property Virgins

[salo_t]

But unless they are paying cash, the house still has to appraise at that ridiculous price. They may get a better deal when the appraisal comes in much lower. Maybe they were using their heads after all?

[Ren]

[quote=Confused]Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?
[/quote]

I agree that the process is seriously flawed, and the realtor compensation system completely unfair, but that said, Sandra Rinomato (the host) is a pretty sharp cookie and isn’t likely to pull numbers out of her butt. A lot goes on behind the scenes, and she bases her advice on data, like comps and buyer activity in the area. You’ll see her tell buyers to lowball just as often as she tells them to overbid.

The listing agent for the property I just bought was incredibly unethical and unprofessional, bullying and harrassing our agent and our lender. He held all the cards in the deal, and we are convinced that he was lying about the other offers, but have no way of knowing for sure. Unfortunately, we were at his mercy. Sometimes life isn’t fair.

[Ren]

[quote=Confused]Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?
[/quote]

I agree that the process is seriously flawed, and the realtor compensation system completely unfair, but that said, Sandra Rinomato (the host) is a pretty sharp cookie and isn’t likely to pull numbers out of her butt. A lot goes on behind the scenes, and she bases her advice on data, like comps and buyer activity in the area. You’ll see her tell buyers to lowball just as often as she tells them to overbid.

The listing agent for the property I just bought was incredibly unethical and unprofessional, bullying and harrassing our agent and our lender. He held all the cards in the deal, and we are convinced that he was lying about the other offers, but have no way of knowing for sure. Unfortunately, we were at his mercy. Sometimes life isn’t fair.

[Ren]

[quote=Confused]Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?
[/quote]

I agree that the process is seriously flawed, and the realtor compensation system completely unfair, but that said, Sandra Rinomato (the host) is a pretty sharp cookie and isn’t likely to pull numbers out of her butt. A lot goes on behind the scenes, and she bases her advice on data, like comps and buyer activity in the area. You’ll see her tell buyers to lowball just as often as she tells them to overbid.

The listing agent for the property I just bought was incredibly unethical and unprofessional, bullying and harrassing our agent and our lender. He held all the cards in the deal, and we are convinced that he was lying about the other offers, but have no way of knowing for sure. Unfortunately, we were at his mercy. Sometimes life isn’t fair.

[Ren]

[quote=Confused]Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?
[/quote]

I agree that the process is seriously flawed, and the realtor compensation system completely unfair, but that said, Sandra Rinomato (the host) is a pretty sharp cookie and isn’t likely to pull numbers out of her butt. A lot goes on behind the scenes, and she bases her advice on data, like comps and buyer activity in the area. You’ll see her tell buyers to lowball just as often as she tells them to overbid.

The listing agent for the property I just bought was incredibly unethical and unprofessional, bullying and harrassing our agent and our lender. He held all the cards in the deal, and we are convinced that he was lying about the other offers, but have no way of knowing for sure. Unfortunately, we were at his mercy. Sometimes life isn’t fair.

[Ren]

[quote=Confused]Somebody please help me understand this: I watched an episode of Property Virgins and was shocked at the process. The For sale price was $549k. The buyers agent proceeded to tell the prospective buyers that the MULTIPLE bids would be over $600k and then urged them to submit their VERY best and highest offer. The couple offered their very maximum of $639k and waited while the agent went across the street to present the offer. She came back 1 hour later and told them there were 3 offers but this couple won. ?????? Really? That’s how a willing buyer and willing seller meet in the middle at a price that satisfies both parties? A buyer and a seller with black box reps in between them urging people to offer their top dollar into a vaccuum?
[/quote]

I agree that the process is seriously flawed, and the realtor compensation system completely unfair, but that said, Sandra Rinomato (the host) is a pretty sharp cookie and isn’t likely to pull numbers out of her butt. A lot goes on behind the scenes, and she bases her advice on data, like comps and buyer activity in the area. You’ll see her tell buyers to lowball just as often as she tells them to overbid.

The listing agent for the property I just bought was incredibly unethical and unprofessional, bullying and harrassing our agent and our lender. He held all the cards in the deal, and we are convinced that he was lying about the other offers, but have no way of knowing for sure. Unfortunately, we were at his mercy. Sometimes life isn’t fair.

[Rt.66]

Regarding real estate agents….. This has got to be the most outrageously over paid under needed job on the planet. Why so few know they can buy or sell a home WITHOUT an over paid middleman is appalling. The title company does the real work and the legal procedures that protect the process. If you need an extra level of confidence then hire a RE attorney.

I think of RE agents in the same vein as drug dealers. Sounds harsh I know but what other endeavor can get so much cash for so little work, with zero educational requirements (unless you count a 48 hour “course”). What other things can a housewife do to make $30k for a few hours of work? The enticement to lie and cheat is enormous. If a realtors lips are moving……..

CONFUSED, you said it well, it’s a flawed system.

Why would any sensible person intentional pay 6% to have a liar in the middle of their most expensive purchase? I love speaking directly with the buyer/seller, forego a realtor once and you never go back.

Never engage in bidding on houses in a declining RE market (duh). As with previous bubbles in CA, there will come a time in this bubble collapse when house sit and rot on the market, even well priced ones. That is a good sign the bottom is near.

I have bought land that was for sale ridiculously cheap yet had been on the market for 6 years and was littered with fallen, rusting signs of previous realtor efforts to move it. I remind myself of that when I’m tempted to call on a low price teaser in this market. Be patient and never, never listen to a realtor unless it a close friend not trying to score off you.

[Rt.66]

Regarding real estate agents….. This has got to be the most outrageously over paid under needed job on the planet. Why so few know they can buy or sell a home WITHOUT an over paid middleman is appalling. The title company does the real work and the legal procedures that protect the process. If you need an extra level of confidence then hire a RE attorney.

I think of RE agents in the same vein as drug dealers. Sounds harsh I know but what other endeavor can get so much cash for so little work, with zero educational requirements (unless you count a 48 hour “course”). What other things can a housewife do to make $30k for a few hours of work? The enticement to lie and cheat is enormous. If a realtors lips are moving……..

CONFUSED, you said it well, it’s a flawed system.

Why would any sensible person intentional pay 6% to have a liar in the middle of their most expensive purchase? I love speaking directly with the buyer/seller, forego a realtor once and you never go back.

Never engage in bidding on houses in a declining RE market (duh). As with previous bubbles in CA, there will come a time in this bubble collapse when house sit and rot on the market, even well priced ones. That is a good sign the bottom is near.

I have bought land that was for sale ridiculously cheap yet had been on the market for 6 years and was littered with fallen, rusting signs of previous realtor efforts to move it. I remind myself of that when I’m tempted to call on a low price teaser in this market. Be patient and never, never listen to a realtor unless it a close friend not trying to score off you.

[Rt.66]

Regarding real estate agents….. This has got to be the most outrageously over paid under needed job on the planet. Why so few know they can buy or sell a home WITHOUT an over paid middleman is appalling. The title company does the real work and the legal procedures that protect the process. If you need an extra level of confidence then hire a RE attorney.

I think of RE agents in the same vein as drug dealers. Sounds harsh I know but what other endeavor can get so much cash for so little work, with zero educational requirements (unless you count a 48 hour “course”). What other things can a housewife do to make $30k for a few hours of work? The enticement to lie and cheat is enormous. If a realtors lips are moving……..

CONFUSED, you said it well, it’s a flawed system.

Why would any sensible person intentional pay 6% to have a liar in the middle of their most expensive purchase? I love speaking directly with the buyer/seller, forego a realtor once and you never go back.

Never engage in bidding on houses in a declining RE market (duh). As with previous bubbles in CA, there will come a time in this bubble collapse when house sit and rot on the market, even well priced ones. That is a good sign the bottom is near.

I have bought land that was for sale ridiculously cheap yet had been on the market for 6 years and was littered with fallen, rusting signs of previous realtor efforts to move it. I remind myself of that when I’m tempted to call on a low price teaser in this market. Be patient and never, never listen to a realtor unless it a close friend not trying to score off you.

[Rt.66]

Regarding real estate agents….. This has got to be the most outrageously over paid under needed job on the planet. Why so few know they can buy or sell a home WITHOUT an over paid middleman is appalling. The title company does the real work and the legal procedures that protect the process. If you need an extra level of confidence then hire a RE attorney.

I think of RE agents in the same vein as drug dealers. Sounds harsh I know but what other endeavor can get so much cash for so little work, with zero educational requirements (unless you count a 48 hour “course”). What other things can a housewife do to make $30k for a few hours of work? The enticement to lie and cheat is enormous. If a realtors lips are moving……..

CONFUSED, you said it well, it’s a flawed system.

Why would any sensible person intentional pay 6% to have a liar in the middle of their most expensive purchase? I love speaking directly with the buyer/seller, forego a realtor once and you never go back.

Never engage in bidding on houses in a declining RE market (duh). As with previous bubbles in CA, there will come a time in this bubble collapse when house sit and rot on the market, even well priced ones. That is a good sign the bottom is near.

I have bought land that was for sale ridiculously cheap yet had been on the market for 6 years and was littered with fallen, rusting signs of previous realtor efforts to move it. I remind myself of that when I’m tempted to call on a low price teaser in this market. Be patient and never, never listen to a realtor unless it a close friend not trying to score off you.

[Rt.66]

Regarding real estate agents….. This has got to be the most outrageously over paid under needed job on the planet. Why so few know they can buy or sell a home WITHOUT an over paid middleman is appalling. The title company does the real work and the legal procedures that protect the process. If you need an extra level of confidence then hire a RE attorney.

I think of RE agents in the same vein as drug dealers. Sounds harsh I know but what other endeavor can get so much cash for so little work, with zero educational requirements (unless you count a 48 hour “course”). What other things can a housewife do to make $30k for a few hours of work? The enticement to lie and cheat is enormous. If a realtors lips are moving……..

CONFUSED, you said it well, it’s a flawed system.

Why would any sensible person intentional pay 6% to have a liar in the middle of their most expensive purchase? I love speaking directly with the buyer/seller, forego a realtor once and you never go back.

Never engage in bidding on houses in a declining RE market (duh). As with previous bubbles in CA, there will come a time in this bubble collapse when house sit and rot on the market, even well priced ones. That is a good sign the bottom is near.

I have bought land that was for sale ridiculously cheap yet had been on the market for 6 years and was littered with fallen, rusting signs of previous realtor efforts to move it. I remind myself of that when I’m tempted to call on a low price teaser in this market. Be patient and never, never listen to a realtor unless it a close friend not trying to score off you.

[kev374]

you can watch the episodes here:

http://www.hgtv.com/hgtv48/videos/index.html

That Real Estate agent is just so full of it, not even funny!

[kev374]

you can watch the episodes here:

http://www.hgtv.com/hgtv48/videos/index.html

That Real Estate agent is just so full of it, not even funny!

[kev374]

you can watch the episodes here:

http://www.hgtv.com/hgtv48/videos/index.html

That Real Estate agent is just so full of it, not even funny!

[kev374]

you can watch the episodes here:

http://www.hgtv.com/hgtv48/videos/index.html

That Real Estate agent is just so full of it, not even funny!

[Author]

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