The cult of professional specialists

[sjglaze3]

This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.

[urbanrealtor]

[quote=sjglaze3]This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.[/quote]

I think that its less about hijacking and more about people’s disappointment and financial damage.
Lots of people have bought and then been frustrated to find out that there was some wacky defect (high tax rate, damaged sewer line, an undisclosed hoa rule that screws up your plans for a home office). Generally, in the UK, “estate sales” as you call them, are retail sales and therefore favor agents that act primarily as retail salesmen.

Riddle me this:
What happens to your financial calculus when you take attorney fees into account?

[urbanrealtor]

[quote=sjglaze3]This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.[/quote]

I think that its less about hijacking and more about people’s disappointment and financial damage.
Lots of people have bought and then been frustrated to find out that there was some wacky defect (high tax rate, damaged sewer line, an undisclosed hoa rule that screws up your plans for a home office). Generally, in the UK, “estate sales” as you call them, are retail sales and therefore favor agents that act primarily as retail salesmen.

Riddle me this:
What happens to your financial calculus when you take attorney fees into account?

[urbanrealtor]

[quote=sjglaze3]This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.[/quote]

I think that its less about hijacking and more about people’s disappointment and financial damage.
Lots of people have bought and then been frustrated to find out that there was some wacky defect (high tax rate, damaged sewer line, an undisclosed hoa rule that screws up your plans for a home office). Generally, in the UK, “estate sales” as you call them, are retail sales and therefore favor agents that act primarily as retail salesmen.

Riddle me this:
What happens to your financial calculus when you take attorney fees into account?

[urbanrealtor]

[quote=sjglaze3]This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.[/quote]

I think that its less about hijacking and more about people’s disappointment and financial damage.
Lots of people have bought and then been frustrated to find out that there was some wacky defect (high tax rate, damaged sewer line, an undisclosed hoa rule that screws up your plans for a home office). Generally, in the UK, “estate sales” as you call them, are retail sales and therefore favor agents that act primarily as retail salesmen.

Riddle me this:
What happens to your financial calculus when you take attorney fees into account?

[urbanrealtor]

[quote=sjglaze3]This is an interesting thread. I’ve often wondered how realtors can justify their 6% fee. I sold my house in England 10 years ago and spent 1.5% on the commission. This is typical over there – I just googled it and 1-2% is still the norm. Then again, the total sales contract for the UK house ran to about 3 pages! When I bought a house over here, it took 30 pages just to make an offer. I was blown away by the difference. It seems to me that the whole process has been hijacked by lawyers and the term “buyer beware” which covers real estate transactions abroad doesn’t apply here.[/quote]

I think that its less about hijacking and more about people’s disappointment and financial damage.
Lots of people have bought and then been frustrated to find out that there was some wacky defect (high tax rate, damaged sewer line, an undisclosed hoa rule that screws up your plans for a home office). Generally, in the UK, “estate sales” as you call them, are retail sales and therefore favor agents that act primarily as retail salesmen.

Riddle me this:
What happens to your financial calculus when you take attorney fees into account?

[sjglaze3]

My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.

[sjglaze3]

My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.

[sjglaze3]

My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.

[sjglaze3]

My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.

[sjglaze3]

My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.

[urbanrealtor]

[quote=sjglaze3]My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.[/quote]

It may also be that houses that old have a more stable set of known issues. You know that xy and z need replacement every so often. I suspect the relative newness of American homes adds in a lot of variables. Interesting.

[urbanrealtor]

[quote=sjglaze3]My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.[/quote]

It may also be that houses that old have a more stable set of known issues. You know that xy and z need replacement every so often. I suspect the relative newness of American homes adds in a lot of variables. Interesting.

[urbanrealtor]

[quote=sjglaze3]My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.[/quote]

It may also be that houses that old have a more stable set of known issues. You know that xy and z need replacement every so often. I suspect the relative newness of American homes adds in a lot of variables. Interesting.

[urbanrealtor]

[quote=sjglaze3]My attorney fee for that sale was about $450. And it was roughly the same when I bought the house. Over there, the attorney acts as the title company/escrow company. The big difference in the UK is the disclosures, as in, there arn’t any. The emphasis is on the buyer to do their due diligence with the help of a good building inspector. Tax and HOA issues are really non-existent for most UK property. Also, most houses there are seriously old (my 1896 house was considered pretty average), so it’s almost inevitable there will be repair issues. Perhaps, people’s expectations here are much higher. They are buying their dream home and want everything to be perfect.[/quote]

It may also be that houses that old have a more stable set of known issues. You know that xy and z need replacement every so often. I suspect the relative newness of American homes adds in a lot of variables. Interesting.

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