[Farls]

Powayseller,
Long-time, no talk. I like your posts…at least most of them…haha.

Regarding your meeting with Bob Casagrand….You’re very convinced he’s a great person and a great Realtor. Which I think is just fine…The items I’ll mention below are in no way a personal attack on Bob (or you)…as I think he says a lot of the right things (per your posts) and has a lot of the right data.

1) He only works with buyers. To him, listings waste too much time.
This is an interesting statement. The top agents will always do a lot of transactions via listings. It’s been said in the real estate business that it takes approximately 10 times the time, energy and effort to make a buyer sale compared to a listing sold. (I understand that it takes longer for a listing to sell than during the previous “hot” market.) Most of the agents that are specifically buyers agents are typically inexperienced or don’t have any good specific reasons for a seller to list a property with them. If you were a top agent would you want to spend your weekends driving around clients who will only write lowball offers? With all Bob’s data…don’t you think he could make a proper listing presentation to get a seller to list his/her home (with Bob) at a price that would cause it to sell? Good listing agents take listings that will sell…and walk away from ones that won’t. Scared agents who don’t feel they have the ability to compete against experienced listing agents don’t try to get the listings at all….So, why would Bob not even try to take salable listings?

2) Condo sellers are offering him 3.5% – 4% commission.
You make it sound as if these sellers are only offering HIM these commissions. The commission amount to the buyers agent is stated in the MLS (and agreed upon by the seller at the time the Listing Agreement is signed) and is the same to whichever buyers agent brings the offer that gets accepted.

Wouldn’t this also show that sellers are now willing to pay MORE commission to get their home sold? I thought we were moving into the time of a 3% total commission…and making Realtors obsolete….

3) He gets all these buyers by having a website. He has so many buyers now, he refers some to other realtors. His business is booming.

Great for Bob…I’m glad he’s doing well.Could you please ask Bob how many transactions he’s closed year-to-date so we can get a feel for the type of activity that’s out there for agents now? Good agents prioritize “leads” and refer lower quality ones to other agents. So, he’s doing the right thing there…

4) Bob understands how to use the internet to leverage his business. Too many realtors out there are still doing business the old way: pounding the pavement, putting ads in papers, printing flyers, holding Open Houses, and putting listings on realtor.com.

I agree with some of this. But as a point of clarification: Agents don’t put listings on Realtor.com. They are a default directly from the MLS which the agent has no control over when they appear (Usually within a day or two..as a new listing) or disappear (when it goes into pending). The agent does have control over the description of the listing and can pay an extra fee to be able to add custom copy and extra photos. In my opinion as a former agent that did a lot of listings…Realtor.com was by far the best way to show a listing via the internet. The amount of hits on that site will blow away any that Bob (or any other agent with their personal website) gets on their site. I wasted money on several of my own websites before just putting the money into Realtor.com. (This has been said by SDRealtor on earlier posts and is exactly right.)

5)Like I wrote a few months back, listings used to guarantee a commission, but no more! You’re dealing with sellers who overprice their homes, and you end up spending thousands of dollars marketing the home which doesn’t sell because they won’t take your advice on lowering the price.

A lot of what you say is true…But a lot of these are listings that were taken by desperate agents, working for mom-n-pop unknown companies whose only reason they got the listing was them saying….”I’ll do it for less”. A good listing agent with the proper data, comps and “objection handling” skills can still get a listing that is priced right and will sell….

6) Enter the buyer’s agent. You deal only with buyers. You make sure the buyer doesn’t get attached to one home. Homes are not like spouses: don’t think there is one soulemate. Find 4-5 homes, give a 24hr offer period on each and make it a firm and final offer that is below market price, and if they counter, move on to the next one.

Interesting. Weren’t you the one who said there was little value in a buyers agent earlier…and that all people find their new home on the internet…and that you just need an agent to handle the paperwork….and you expect the agent to give you a large proportion of his/her income???

7) What I like about Bob is that his is upfront with all his customers. He tells them not to expect appreciation, not to refinance, to get a mortgage they can live with a long time.

Great! I agree….

8)Bob’s business experience is amazing. Guys like him always figure out how to improve on things, find an edge. He’s a family man, very smart, very nice. I am fortunate that he considers me a friend.

Wow, you’re laying it on pretty thick here. Are you seeking a campaign contribution from him? Just kidding. All this is great…But it doesn’t make him a great or successful person in the real estate business. I’ve met former landscapers that become so good at helping their clients that they sell several hundred homes per year and make millions of dollars doing it….In a nutshell, a prior business career certainly helps in understanding dealing with people, situations, processes etc…But it does not guarantee a sucessful real estate career. I personally would choose an experienced person in real estate to handle my transactions.

9) Bob said that the outflow of people is amazing. On a recent weekend he took his buyer to see 5 homes, and each seller was leaving SD upon sale. We’ve got 15K families/year leaving SD, meaning 15K/year vacant homes. It’s the slower sales that’s increasing the inventory.

With so many sellers wanting to leave town…you’d think there were some salable listings out there…..People who would price their home to sell at the right price…

10)…….don’t ever count on the media or your realtor to tell you the truth about housing. They are just as cluelss as the average joe on the street.

Bob=Truth in all real estate aspects.
Other Realtors= “Dipsh*ts”………as you said in an earlier post

Again…my business goes to an active agent that does a lot of business…especially in my neighborhood….

11) When I am ready to buy, Bob is my guy to go to. He understands the market better than any realtor I have ever come across. A true buyers’ agent.

Again Powayseller, you earlier said a buyers agent was a highly paid taxi driver…..and all people find the home by themselves on the internet…I thought you said the Mackey Team was the team to go to??? I thought you would just have an Attorney do the paperwork so you could put the commission savings in your pocket???

OK…Finally finished and sorry for the rambling…..and nothing personal in this post…

Farls

[Farls]

Donna,
Again, your rambling post makes little sense…

I noticed you’re up past midnight making your post. You said we were obsessed…..

Thank you for telling me not to judge people…while you were judging me…..all while not knowing me…

I too agree to end this discussion.

Farls

[Farls]

Donna,

I respect the passion that you have while replying to the posts. But clearly you have lost the focus of what we were originally discussing and now you are flying off with all kinds of random statements…Most of which make no sense.

If you remember:
1) I said Rima’s article was poorly written and contained many grammatical errors. (Which could be attributed to English not being her 1st language.)It should never have been published as it was written. I don’t think this can be disputed.

2) I questioned her as being an expert with enough qualifications and experience to be writing real estate articles for publication. This is a valid point as shown what she said in the article…and due to her being relatively new in the business. This is a point I guess we can just “agree to disagree” on…

The more you write…the more I shake my head.

You said I made a racial comment. Can you please point it out for me? (In fact, you called me a Redneck)

For your information..I made over $180,000 in gross commissions from being a real estate agent last year and happily left the business. I did not enjoy it anymore and felt it was a good time to walk away. (Yet you call me a crappy part-timer agent without knowing anything about me)

and..
I am a foreigner living in a different country than where I have citizenship.

I own my own company in that foreign country and provide jobs to 40+ people.

I guess we can just “agree to disagree” on the direction of the downtown market and not fight about it anymore. If you are happy with your purchase there then that’s all that matters. I just would not have bought a property there myself as I see it as a bad investment. I don’t see how the data could have shown anything different….I can’t see how negative monthly cashflow (unless very large down-payment) and decling property values can be seen as a good investment. But again, if you’re happy….fine. Enough said about it.

I think your posts actually show you as the one who is intolerant of other people…..

Have a nice day.

Farls

[Farls]

Bugs,
Where was “credit given to an agent with minimal experience for writing what we want to hear”? If you were referring to me…I would not call my experience minimal (as I was involved in nearly 100 real estate transactions).

I do think it’s “reasonable to expect an objective and unbiased analysis of a deal from someone whose compensation is commensurate with the closing of that deal and the amount at which it closes”. You’re making it sound as if every Real estate agent is desperately chasing a paycheck….without regards to the goal of his/her clients. Maybe I was one of the few Realtors with a conscience…

I think you’re overestimating NAR’s control, direction and messages that they are trying to get out via their agents. Most agents have no contact with NAR except for getting a crappy magazine periodically that soon ends up in the recycling bin.

Farls

[Farls]

Donna,
I stand by my post. Maybe you should read it again. I don’t say anything about foreigners not being successful in the U.S….or their knowledge of investing in the country.

You telling me to “feel the real market” is laughable. I did feel the real market when I handled a listing for my client at The Grande late last year. The sellers were lucky to get out of it with any profit at all after buying it in pre-construction 2 years earlier.

As I said..Have fun with your “investment” downtown…and I seriously doubt you have $75K in instant equity on a property bought last year. But…have fun with that cash you’re taking out…Also, enjoy the negative cashflow.

Soon you will “feel the real market”…

Farls

[Farls]

Donna,

1. I never said Rima wasn’t a nice person. She’s very nice and tries hard to be a good real estate agent. Just because she goes to a real estate convention it doesn’t mean she’s successful. Many agents go to these things as a way to convince themselves that they’re actually busy….

2. She is not experienced enough to be writing forecasting type articles for any real estate publications in my opinion.

3. The fact that English is her 2nd language is no reason to get upset at me. If she is writing an article in English then it should be grammatically correct. It’s not even close and should never have been printed.

4. I have no idea what she’s trying to say in this article.

5. How can you describe me as being lazy when you don’t know me?

6. For the record….I was an agent to in San Diego and sold circles around Rima. But who’s counting…You brought it up….

7. While you were being advised to buy downtown…I was advising my clients to get the hell out of that market!!!! OF COURSE the people at the sales offices were happy to see Rima. No one else wanted to buy what they were selling. Here’s a tip: In a declining market when you buy a property for less than the last comp you don’t have instant equity. You just are the new owner of the sinking ship…

I hope you and your friends enjoy your “investment” properties downtown. They decrease in value everyday..

Farls

[Farls]

ok…ok….enough you guys. Knock it off….

[Farls]

1. The slowing market is great for good Realtors. It will eliminate the huge numbers of part-timers and newbies who do 1-2 deals a year. Essentially…survival of the fittest…Just as sdrealtor said…

2. Many overpriced listings currently on the market are listed by agents that don’t have the skills or guts to tell the seller’s they’re overpriced. (A good agent would get a price reduction fairly fast…or not take the listing at all.) Many are listed by desperate agents who will do anything to get a listing….and get a sign up with their name on it…to fool themselves into thinking they’re actually busy…

3. Why would any buyer pay anything to a Lawyer or Consultant to buy a house when you can pick your own Realtor and work with him or her for free? When a home is listed the seller already agrees to pay a commission to the buyers agent. It’s built into the price when the property is listed…Not when the purchase contract is agreed upon. You might as well use the expertise of a good Realtor of your choice….

Farls

[Farls]

Keep renting!! Unless there are some things that are so fantastic about this house I certainly wouldn’t buy now. Keep your money in the bank….Keep your expenses down (as they are)…I don’t think you can go wrong to continue renting a 3 bedroom house for only $985.

[Farls]

Boston,
Good response. Nice to have you onboard.

Farls

[Farls]

Boston,
You have provided some good info…I agree with you 100% that many in San Diego and OC bit off a lot more than they can chew regarding their home purchases. The income just does not support the purchase prices.

But, to say that people from Boston are too educated that they would never over-leverage themselves is laughable. Sure you have some minivan driving guys worth $5million…But you also have the Mercedes leasing people in debt up to their eyeballs. I’m sure Powayseller can find you some info on homes in pre-foreclosure now in Boston. American’s spend more than they earn everywhere…..

I’m not sure it was necessary to talk so much about your income and education. It seemed to me you were bragging about it. You said you were in sales…what makes you so different from a car slaesman or a real estate agent? I know a lot of “tools” in the real estate business who make a lot more money than you do….even one from USC…They could look at you and conversely say…”Look at that guy…He paid $XXX,XXX for the fancy degrees and only makes $150,000″…

[Farls]

Speaking of China…I believe they are feeling the pain of an over-cooked housing market right now. Their bubble has started to pop. I saw something recently on tv about the Beijing market and how it was in the tank. (Sorry I don’t have more specifics about it.) Powayseller…you are great at research..maybe you could find a good article on it?

Farls

[Farls]

Lennar offering 5% Realtor commission

I just received this email today:

Calling All Agents!
EARN UP TO 5% BROKER
CO-OP AT PORTA D’ITALIA!
…in the heart of Little Italy
City and ocean views are available!
Parking is included with each home!
Amenities include a fitness center, club house, elevators and courtyards with BARBQ.
Open Daily 10-6pm
Model homes to view!

Studio: From $258,000
1 Bedroom: From $315,000
2 Bedroom: From $435,000
Porta d’Italia
1970 Columbia St.
San Diego, CA 92101
619-501-7618
http://www.portaditalia.com
**To qualify for a broker co-op, client’s agent must accompany his client’s first visit to the Welcome Home Center. No referral fee will be paid when agent/broker is acting as principal/buyer. Lennar reserves the right to discontinue this program at any time. Prices are subject to change. See sales associate for more details.

[Farls]

Concho,
I agree…prices started falling a long time ago…and sales prices have been inflated for over a year by seller credits that don’t show up in MLS data.

I think when comparing apples to apples (like model matches in condo complexes) the best time to sell was Spring 2004.

Farls

[Farls]

Lendingbubble,
You’re right. The commissions on very high priced homes are too high. In some areas (Not really San Diego though…yet) agents stagger their commission based on the price of the home. The higher the sales price the lower the commission percentage.

Good Realtors will always make way more than $30K-$40K…(If you were good at your profession and only made $30,00-$40,000 wouldn’t you quit and do something else?) Really good realtors will always make several hundred thousand dollars per year…even with the competition from the discounters. A slowdown in the market and increased competition from discounters will have the largest effect on the “fringe” agents that aren’t making a great living anyway…

Farls

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