Forum Replies Created
-
AuthorPosts
-
SD Realtor
ParticipantAlex –
I understand where you are coming from but I just cannot support the argument. While the builders in 4S have managed to prop up demand, that is not going to be the case forever. Indeed there have been declining resales in 4S and to neglect the argument that there is currently distress there is naive. It simply has not reared it’s ugly head and it will not as people who live there all have decent jobs.So as loans reset, they will slowly donate more money to the lender. I believe that there is alot to learn from previous prognostications from pundits. Guys like Alan Gin who always seem to try to be careful with outlooks but who always (in the past) landed on the optimistic side that was speculative when compared to the pessimistic side which appeared to be factual. It will take awhile for 4S to go full tilt unless there is an event that will upset things such as rapid unemployment. However, I think that the secondary market crunch will indeed have severe ramifications for potential 4S buyers. Once more, this will not show up immediately. It will take awhile. I also think that 4S has some potential for heavier tilt because it is not established, I do not see heavy equity stakes in the majority of the homeowners. This is an important variance when comparing it to seasoned neighborhoods where there are people who will just ride out the storm.
SD Realtor
ParticipantRadelow yes in fact I have. I have been to a few listing appointments where the potential sellers have told me that they spoke to listing agents who were indeed cutting their commissions.
******
On the flip side here is something that I run across as well. I have a listing in Ramona. It is a friend of a friend and he is NOT a motivated seller. He has priced his home well overmarket. He was listed with a local agent in Ramona and it didn’t sell then he called me and I listed it. Of course it is dead as wood out there and he has gotten no activity. So the listing expired the other day and I asked him if he wanted me to remove my signs and stuff. He said no and he asked me what I thought he should do. I told him to cut his price to what I originally recommended and he said he could not do that. So I said I had no advice for him other then go to a local agent up there who could market it and hope for the best.
He said that he has received at least 20 calls in the past day from other listing agents who said that they had buyers for him but would not be able to bring them by his home unless he would list with them. He asked me why they did that. I told him that is something that I cannot answer. I told him to put their money where their mouth is and to go list with them and see.
I always think that is hilarious.
SD Realtor
ParticipantRadelow yes in fact I have. I have been to a few listing appointments where the potential sellers have told me that they spoke to listing agents who were indeed cutting their commissions.
******
On the flip side here is something that I run across as well. I have a listing in Ramona. It is a friend of a friend and he is NOT a motivated seller. He has priced his home well overmarket. He was listed with a local agent in Ramona and it didn’t sell then he called me and I listed it. Of course it is dead as wood out there and he has gotten no activity. So the listing expired the other day and I asked him if he wanted me to remove my signs and stuff. He said no and he asked me what I thought he should do. I told him to cut his price to what I originally recommended and he said he could not do that. So I said I had no advice for him other then go to a local agent up there who could market it and hope for the best.
He said that he has received at least 20 calls in the past day from other listing agents who said that they had buyers for him but would not be able to bring them by his home unless he would list with them. He asked me why they did that. I told him that is something that I cannot answer. I told him to put their money where their mouth is and to go list with them and see.
I always think that is hilarious.
SD Realtor
ParticipantRadelow yes in fact I have. I have been to a few listing appointments where the potential sellers have told me that they spoke to listing agents who were indeed cutting their commissions.
******
On the flip side here is something that I run across as well. I have a listing in Ramona. It is a friend of a friend and he is NOT a motivated seller. He has priced his home well overmarket. He was listed with a local agent in Ramona and it didn’t sell then he called me and I listed it. Of course it is dead as wood out there and he has gotten no activity. So the listing expired the other day and I asked him if he wanted me to remove my signs and stuff. He said no and he asked me what I thought he should do. I told him to cut his price to what I originally recommended and he said he could not do that. So I said I had no advice for him other then go to a local agent up there who could market it and hope for the best.
He said that he has received at least 20 calls in the past day from other listing agents who said that they had buyers for him but would not be able to bring them by his home unless he would list with them. He asked me why they did that. I told him that is something that I cannot answer. I told him to put their money where their mouth is and to go list with them and see.
I always think that is hilarious.
SD Realtor
ParticipantPretty good analysis lniles. If it wasn’t for Telecom I wouldn’t be here either. Lots of other people in our boat. Really it seems to me that San Diego is a destination location for people who have alot of money. There are certain neighborhoods that also have alot of housing for those with high paying jobs. Beyond that however I think there is a larger disparity then many people realize.
SD Realtor
ParticipantPretty good analysis lniles. If it wasn’t for Telecom I wouldn’t be here either. Lots of other people in our boat. Really it seems to me that San Diego is a destination location for people who have alot of money. There are certain neighborhoods that also have alot of housing for those with high paying jobs. Beyond that however I think there is a larger disparity then many people realize.
SD Realtor
ParticipantPretty good analysis lniles. If it wasn’t for Telecom I wouldn’t be here either. Lots of other people in our boat. Really it seems to me that San Diego is a destination location for people who have alot of money. There are certain neighborhoods that also have alot of housing for those with high paying jobs. Beyond that however I think there is a larger disparity then many people realize.
SD Realtor
ParticipantGood for the Fed… One thing that confused me though is that even if the Fed would have lowered the rates, where would that have helped?
Just about every ARM that I know of resets to the Libor. Similarly every other vehicle is based on the long bond. The current 10 year yield is already back to being inverted. (I think) Even if the Fed did crank down the rates I guess yes that would have enabled some liquidity for banks but I just don’t see how it would have lubricated the secondary market.
SD Realtor
ParticipantGood for the Fed… One thing that confused me though is that even if the Fed would have lowered the rates, where would that have helped?
Just about every ARM that I know of resets to the Libor. Similarly every other vehicle is based on the long bond. The current 10 year yield is already back to being inverted. (I think) Even if the Fed did crank down the rates I guess yes that would have enabled some liquidity for banks but I just don’t see how it would have lubricated the secondary market.
SD Realtor
ParticipantGood for the Fed… One thing that confused me though is that even if the Fed would have lowered the rates, where would that have helped?
Just about every ARM that I know of resets to the Libor. Similarly every other vehicle is based on the long bond. The current 10 year yield is already back to being inverted. (I think) Even if the Fed did crank down the rates I guess yes that would have enabled some liquidity for banks but I just don’t see how it would have lubricated the secondary market.
SD Realtor
ParticipantThanks for that PR.
SD Realtor
ParticipantThanks for that PR.
SD Realtor
ParticipantThanks for that PR.
SD Realtor
Participantbuyorhold –
Personally I advise sellers to consider advertising a competitive commission for the selling agent, (buyers agent). We sit down TOGETHER and I pull up all of the comps in that area, be it complex, subdivision or zip code, and we break down the co-op commission. In every case we DO NOT find a correlation between the HIGHEST commission paid to the selling agent, and the number of sold properties. We always do find that the combination of price, and quality of the listing is what sells the home. So in a given situation of say 25 homes, if the breakdown is 13 have 2.5%, 11 of them have 3% and 2 of them have 3.5% AND the home is good condition then I will recommend the 2.5%. Other agents may disagree with this but in my studies I have found that the raw data does not back up the bias.
Have your agent give you this breakdown. That may help.
*******
I am a bit puzzled by your description. So when did you sign the listing agreement? When you signed didn’t your agent give you a timeline of events? Like when the pictures would be ordered, the sign installed, the flyers done etc? Also I am confused about your commission structure. On the Residential listing agreement there are 2 sections where the commission is discussed. The first section is for the compensation to the listing agent. So what was the commission specified here? Was it 3%? Then later down on the page is where the selling agent coop commission is specified. What did you specify in this section?
I will tell you this… For an agent to play with the commission after you have signed the listing agreement is very unprofessional.
Sounds like you are paying for “full service” and you are not really getting the full service treatment.
SD Realtor
-
AuthorPosts
