[NotCranky]

I am sure your intentions are good Ray. The idea it self is fine.
While on this topic…I am not sure why someone would want to rush out and pay 6% to anyone. Isn’t it common knowledge that 3.5-4.5 will do it? There is no need for the listing agent to take more than 2% or offer more that 2.5% to the cooperating broker.

Some people argue that higher commissions gives incentive to the buyer’s agent. I don’t think it is necessary because buyers have so much information available today and are spoon feeding their agents properties to look at. The agent can hardly refuse to show them because of a lower commission and shouldn’t anyway. There could be some effect of lower or higher commissions on cooperating brokers but I doubt it is much.
There have been articles in the paper about money and cars being given to agents to sell certain properties. I personally think that is just wrong.

[NotCranky]

I am sure your intentions are good Ray. The idea it self is fine.
While on this topic…I am not sure why someone would want to rush out and pay 6% to anyone. Isn’t it common knowledge that 3.5-4.5 will do it? There is no need for the listing agent to take more than 2% or offer more that 2.5% to the cooperating broker.

Some people argue that higher commissions gives incentive to the buyer’s agent. I don’t think it is necessary because buyers have so much information available today and are spoon feeding their agents properties to look at. The agent can hardly refuse to show them because of a lower commission and shouldn’t anyway. There could be some effect of lower or higher commissions on cooperating brokers but I doubt it is much.
There have been articles in the paper about money and cars being given to agents to sell certain properties. I personally think that is just wrong.

[NotCranky]

Hello Raptorduck.

It just occurs to me whether relevant or not to advise you to protect properties that you are interested in a ltttle more. I am going to swallow my pride and say that you are looking at “special” houses (sdrealtor knows what I mean).We have all seen you work very hard to locate soemthing right for you. Don’t give it away.

There is an open house for the home featured in this thread this Sunday from 1-4. Don’t get the idea that the price for this house or any house is set in stone. You seem to be saying you would have snapped it up at 2.5m if you knew about. It might go for something close to that. You never know. If you don’t have reason to wipe it off your list, watch it. If you are fairly interested, be ready to act if the price gets near where you want it or just write a 2.5M offer.I know this is improbable. From the other posts it sounds like a little more assertiveness by you and your agent wouldn’t hurt you.That is all I am trying to say. This obviously goes for all properties. Just a reminder, we are in a falling market,this is a flipper(whether they planned it or not) and flippers and everyone else, tend to be dropping prices, your 200k increase example not withstanding

[NotCranky]

Hello Raptorduck.

It just occurs to me whether relevant or not to advise you to protect properties that you are interested in a ltttle more. I am going to swallow my pride and say that you are looking at “special” houses (sdrealtor knows what I mean).We have all seen you work very hard to locate soemthing right for you. Don’t give it away.

There is an open house for the home featured in this thread this Sunday from 1-4. Don’t get the idea that the price for this house or any house is set in stone. You seem to be saying you would have snapped it up at 2.5m if you knew about. It might go for something close to that. You never know. If you don’t have reason to wipe it off your list, watch it. If you are fairly interested, be ready to act if the price gets near where you want it or just write a 2.5M offer.I know this is improbable. From the other posts it sounds like a little more assertiveness by you and your agent wouldn’t hurt you.That is all I am trying to say. This obviously goes for all properties. Just a reminder, we are in a falling market,this is a flipper(whether they planned it or not) and flippers and everyone else, tend to be dropping prices, your 200k increase example not withstanding

[NotCranky]

Excellent observation SDR. No need to dig deeper. That explains it. Thanks.

[NotCranky]

Excellent observation SDR. No need to dig deeper. That explains it. Thanks.

[NotCranky]

It gets difficult, Patient, because entry point both specific to the house value and and other economic factors/trends of the ownership period. You have to weight the investors aptitude. What of rents in perpetuity once the house is paid for. Passing properties on to your kids if you have them.

“How about studies with all of them maximized?”

I think there are some people on this blog whose history provides case studies for having all of them maximized. I have elderly friends who never invested in anything but RE, never were tremendous income earners and they are doing pretty well. Good study there. They didn’t get there with one or two percent ROI.

I am not going to say there are no definitive studies. I guess I will shut up.

[NotCranky]

It gets difficult, Patient, because entry point both specific to the house value and and other economic factors/trends of the ownership period. You have to weight the investors aptitude. What of rents in perpetuity once the house is paid for. Passing properties on to your kids if you have them.

“How about studies with all of them maximized?”

I think there are some people on this blog whose history provides case studies for having all of them maximized. I have elderly friends who never invested in anything but RE, never were tremendous income earners and they are doing pretty well. Good study there. They didn’t get there with one or two percent ROI.

I am not going to say there are no definitive studies. I guess I will shut up.

[NotCranky]

Rustico AKA realtor boy

1. Are buyer’s making offers with a contingency that buyer’s house must sell first for deal to go through? My sense is that this contingency has fallen out of use in the past 5 yrs.

Nothing wrong with making this contingency. It has been less popular in the boom because sellers could take an offer that didn’t include it because there were so many buyers. The seller always can establish the 72 hour clause so I don’t see why they would refuse your offer on that criteria. It may be difficult in a short sale situation or REO depends on the institution and I don’t have data.

2.The house has been abandoned. Therefore, water, electrical etc. has been turned off. How in the world can a good inspection of the house be made prior to sale…..pool heater, pump, a/c and heating, water heaters, water pressure..etc. Obviously, I would need to make a contingency in the first offer but has anyone had experience with this type of situation?

If you buy from a private party these issues should be accommodated. If you are dealing with a bank they don’t have to and perhaps won’t, you cover any risk with the offer or ask if they will cooperate before you get to deep.

Disclaimer, I am just “realtorboy” practicing. Realtordaddy will be along soon(If he hasn’t posted already).

[NotCranky]

Rustico AKA realtor boy

1. Are buyer’s making offers with a contingency that buyer’s house must sell first for deal to go through? My sense is that this contingency has fallen out of use in the past 5 yrs.

Nothing wrong with making this contingency. It has been less popular in the boom because sellers could take an offer that didn’t include it because there were so many buyers. The seller always can establish the 72 hour clause so I don’t see why they would refuse your offer on that criteria. It may be difficult in a short sale situation or REO depends on the institution and I don’t have data.

2.The house has been abandoned. Therefore, water, electrical etc. has been turned off. How in the world can a good inspection of the house be made prior to sale…..pool heater, pump, a/c and heating, water heaters, water pressure..etc. Obviously, I would need to make a contingency in the first offer but has anyone had experience with this type of situation?

If you buy from a private party these issues should be accommodated. If you are dealing with a bank they don’t have to and perhaps won’t, you cover any risk with the offer or ask if they will cooperate before you get to deep.

Disclaimer, I am just “realtorboy” practicing. Realtordaddy will be along soon(If he hasn’t posted already).

[NotCranky]

Golgal,

I don’t think one can get a fix on what you are asking in your last post.You either make your best educated guess, wait until it seems like a no brainer or go look for a location that seems like a no brainer.

Now, I think you want to know how do you make an educated guess?
Wait until it seems like a no brainer and guess that you are right. Right now we can’t make it be a no brainer no matter how hard we try. But when the time is right it will be easy to see the “no brainer” aspect.

I know that is too flippant…I think it works as good as being smart does.

[NotCranky]

Golgal,

I don’t think one can get a fix on what you are asking in your last post.You either make your best educated guess, wait until it seems like a no brainer or go look for a location that seems like a no brainer.

Now, I think you want to know how do you make an educated guess?
Wait until it seems like a no brainer and guess that you are right. Right now we can’t make it be a no brainer no matter how hard we try. But when the time is right it will be easy to see the “no brainer” aspect.

I know that is too flippant…I think it works as good as being smart does.

[NotCranky]

“Here are your stats:

55 closed in 2007 of which his team sold 5.

9 currently in escrow of which his team sold 1.

Thats about 10% in both cases.”

Those results are actually better than I would expect is average,perhaps their model does have something to do with it and Rustico eats crow. Do you know how it plays out market wide sdr? Based on my own experience I would guestimate 1 in 20. I would think in this market it is going to be even less of a normal occurrence? Stands to reason.

[NotCranky]

“Here are your stats:

55 closed in 2007 of which his team sold 5.

9 currently in escrow of which his team sold 1.

Thats about 10% in both cases.”

Those results are actually better than I would expect is average,perhaps their model does have something to do with it and Rustico eats crow. Do you know how it plays out market wide sdr? Based on my own experience I would guestimate 1 in 20. I would think in this market it is going to be even less of a normal occurrence? Stands to reason.

[NotCranky]

gb,

What kind of property did you sell and what kind of properties and locations are you comfortable with. That info might help would be respondents(Realtors or otherwise).

[Author]

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