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SD Realtor
ParticipantMatt –
Your post is absolutely correct. With all of the access to resources today, you don’t need to hire an agent. People still do, but nobody absolutely needs to. I don’t understand why people seem to state, “in the future” this or that will happen… the future is now. People don’t need to use them today. As a former agent, as you know, escrow doesn’t look out for anyone or protect anyone. Escrow is an independent entity that doesn’t represent or protect anybody. Escrow enforces conditions and requirements of the purchase contract and makes ammendments when necessary. Similarly if anyone here has read over a termite report or a physical inspection they know half of the contents in those reports consists of disclaimers and release of liability. A title company insure that there are no pre-existing claims to title (or clouds) prior to issuing a title insurance policy, furthermore the policy of title insurance issued to the lender is much more extensive then the policy of title insurance issued to the actual homeowner. How many people homeowners here have called their title insurance company to ask them questions about their policy? Also as a buyer you do not have a say in hiring the lender. The lender is hired by your lender.
Transaction coordinators are indeed utilized by both listing agents and selling (aka buyers) agents. However a tc (transaction coordinator) does not advise buyers/sellers in any way shape or form. A tc simply makes sure that all pertinent forms are signed correctly by all parties involved. A tc working for a listing agent will also make sure that the correct disclosure package is generated based on the location and type of housing. Indeed there are independent transaction coordinators that service independent brokerages (in fact I use one) while most large traditional brokerages have in house coordinators. Most of the independent transaction coordinators I have worked with will not work for a buyer or seller directly, (again due to liability issues) and they all carry a seperate E&O policy.
So once again, I am not disputing your point, in fact as I said, I agree. I just once more want to clarify the pre-existing roles of all the entities you brought up.
ParticipantMatt –
Your post is absolutely correct. With all of the access to resources today, you don’t need to hire an agent. People still do, but nobody absolutely needs to. I don’t understand why people seem to state, “in the future” this or that will happen… the future is now. People don’t need to use them today. As a former agent, as you know, escrow doesn’t look out for anyone or protect anyone. Escrow is an independent entity that doesn’t represent or protect anybody. Escrow enforces conditions and requirements of the purchase contract and makes ammendments when necessary. Similarly if anyone here has read over a termite report or a physical inspection they know half of the contents in those reports consists of disclaimers and release of liability. A title company insure that there are no pre-existing claims to title (or clouds) prior to issuing a title insurance policy, furthermore the policy of title insurance issued to the lender is much more extensive then the policy of title insurance issued to the actual homeowner. How many people homeowners here have called their title insurance company to ask them questions about their policy? Also as a buyer you do not have a say in hiring the lender. The lender is hired by your lender.
Transaction coordinators are indeed utilized by both listing agents and selling (aka buyers) agents. However a tc (transaction coordinator) does not advise buyers/sellers in any way shape or form. A tc simply makes sure that all pertinent forms are signed correctly by all parties involved. A tc working for a listing agent will also make sure that the correct disclosure package is generated based on the location and type of housing. Indeed there are independent transaction coordinators that service independent brokerages (in fact I use one) while most large traditional brokerages have in house coordinators. Most of the independent transaction coordinators I have worked with will not work for a buyer or seller directly, (again due to liability issues) and they all carry a seperate E&O policy.
So once again, I am not disputing your point, in fact as I said, I agree. I just once more want to clarify the pre-existing roles of all the entities you brought up.
ParticipantWhat is quite comical in this entire thread is that I am the one who argues with sdr the most about the pros and cons of full service brokerages…
sdr I hope you are getting a big chuckle out of this entire thread my friend.
El Jefe – My mistake, you are correct as you said regarding the broker and appraiser, not a sales agent. I stand corrected.
Do you have your brokers license?
Also why would anyone go through the hassle of doing that when they could list their home for 500 bucks on the MLS with Jeff Karchin?
Or if they are going to be a buyer why not go in unrepresented.
Doesn’t that seem to be alot easier?
SD Realtor
ParticipantWhat is quite comical in this entire thread is that I am the one who argues with sdr the most about the pros and cons of full service brokerages…
sdr I hope you are getting a big chuckle out of this entire thread my friend.
El Jefe – My mistake, you are correct as you said regarding the broker and appraiser, not a sales agent. I stand corrected.
Do you have your brokers license?
Also why would anyone go through the hassle of doing that when they could list their home for 500 bucks on the MLS with Jeff Karchin?
Or if they are going to be a buyer why not go in unrepresented.
Doesn’t that seem to be alot easier?
SD Realtor
ParticipantScruffy depreciation recapture is an important variable that would help to analyze your situation in a more efficient manner. How long have you owned each property, what is your original basis, and how much have you depreciated out is important.
To be honest I would not even begin to try to answer your question without a more comprehensive look at your overall portfolio. Do you have any other capital gains losses you are carrying from other investments, etc…
Do not, I repeat do not try to answer this question as you have posed it… this is a question that you need to sit down with a financial planner and analyze.
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One thing not mentioned but unfortunately they are now highly regulated are private annuity trusts. These are pretty nice instruments for highly depreciated assets. However, the IRS now provides a high level of scrutiny for these instruments. If utilized properly they can save you a ton of money in deferred tax savings while providing a robust income stream.
Anyways, I believe there are other factors you may have to consider and should work with your financial planner to do so in order to come out with an ideal solution. So I mentioned the PAT because it was an option you did not mention.
SD Realtor
ParticipantScruffy depreciation recapture is an important variable that would help to analyze your situation in a more efficient manner. How long have you owned each property, what is your original basis, and how much have you depreciated out is important.
To be honest I would not even begin to try to answer your question without a more comprehensive look at your overall portfolio. Do you have any other capital gains losses you are carrying from other investments, etc…
Do not, I repeat do not try to answer this question as you have posed it… this is a question that you need to sit down with a financial planner and analyze.
*******
One thing not mentioned but unfortunately they are now highly regulated are private annuity trusts. These are pretty nice instruments for highly depreciated assets. However, the IRS now provides a high level of scrutiny for these instruments. If utilized properly they can save you a ton of money in deferred tax savings while providing a robust income stream.
Anyways, I believe there are other factors you may have to consider and should work with your financial planner to do so in order to come out with an ideal solution. So I mentioned the PAT because it was an option you did not mention.
SD Realtor
ParticipantSometimes I wonder why I bother addressing posts like these but then I tell myself that I am just trying to help people out with facts rather then speculative posts that seem to run rampant.
El Jefe – Do you know what a lifetime of MLS fees adds up to? Do you even know how much it costs to join SDAR so that you have access to the MLS? Do you know the difference in fees if you are a salesperson verses a broker? Probably you do not.
Also do you think having a brokers license will alone give you access to be able to shop with all the lenders and be able to have leverage with them to get your own loan?
I take it you have done this before or else you wouldn’t advise others to do it correct? I don’t mean to come down on you and maybe you do know the answers to all of those questions. If you do, then I apologize. If not then I do not.
Currently a salesperson pays 132 a quarter for MLS fees and a couple hundred more for the annual payment. I will point out other costs and considerations below.
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I try to post facts when I post. When I do not then I use the statement in my opinion or IMO.
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When you become a licensee, (after you have taken the appropriate classes or have previous college credits) and you have passed the state test, in order to buy or sell real estate, be it for yourself or for others you need to hang your license with a broker. Alternately you can go ahead and obtain your brokers license as well. Now when you have this, in order to gain access to the MLS you need to join the local association of Realtors. In San Diego that is SDAR the San Diego Association of Realtors. Every county has their own association. Joining the association is actually beneficial contrary to what all of you believe. As an electrical engineer I shared your skepticism, believe me. However when you do join you pay a membership fee to get access to the MLS and you can get a Sentriock key to show homes as well. Another thing that many people never consider would be E&O (errors and ommissions insurance) which you will need to obtain.
Also, I have used a real estate attorney before so I do think is curious to see the speculative posts on the cost of that service.
I am not saying that the current system is good. Like I said I got tired of paying commissions as well so I did do it myself. I went through the entire process and I know others that have as well. I am not saying the current system is good or equitable or anything of the sorts. If you don’t like don’t use it. You can sell a house yourself, you don’t need to put it on the MLS or offer any commission. You can call Jeff Karchin and he charges like 500 bucks or something like that to put you on the MLS.
Radelow himself just posted the other day and he is going to buy and not use an agent, he is just going to tell the listing agent to cut the price by the buyers commission and he will represent himself.
Rustico and others – no slants here…
ParticipantSometimes I wonder why I bother addressing posts like these but then I tell myself that I am just trying to help people out with facts rather then speculative posts that seem to run rampant.
El Jefe – Do you know what a lifetime of MLS fees adds up to? Do you even know how much it costs to join SDAR so that you have access to the MLS? Do you know the difference in fees if you are a salesperson verses a broker? Probably you do not.
Also do you think having a brokers license will alone give you access to be able to shop with all the lenders and be able to have leverage with them to get your own loan?
I take it you have done this before or else you wouldn’t advise others to do it correct? I don’t mean to come down on you and maybe you do know the answers to all of those questions. If you do, then I apologize. If not then I do not.
Currently a salesperson pays 132 a quarter for MLS fees and a couple hundred more for the annual payment. I will point out other costs and considerations below.
*******
I try to post facts when I post. When I do not then I use the statement in my opinion or IMO.
*******
When you become a licensee, (after you have taken the appropriate classes or have previous college credits) and you have passed the state test, in order to buy or sell real estate, be it for yourself or for others you need to hang your license with a broker. Alternately you can go ahead and obtain your brokers license as well. Now when you have this, in order to gain access to the MLS you need to join the local association of Realtors. In San Diego that is SDAR the San Diego Association of Realtors. Every county has their own association. Joining the association is actually beneficial contrary to what all of you believe. As an electrical engineer I shared your skepticism, believe me. However when you do join you pay a membership fee to get access to the MLS and you can get a Sentriock key to show homes as well. Another thing that many people never consider would be E&O (errors and ommissions insurance) which you will need to obtain.
Also, I have used a real estate attorney before so I do think is curious to see the speculative posts on the cost of that service.
I am not saying that the current system is good. Like I said I got tired of paying commissions as well so I did do it myself. I went through the entire process and I know others that have as well. I am not saying the current system is good or equitable or anything of the sorts. If you don’t like don’t use it. You can sell a house yourself, you don’t need to put it on the MLS or offer any commission. You can call Jeff Karchin and he charges like 500 bucks or something like that to put you on the MLS.
Radelow himself just posted the other day and he is going to buy and not use an agent, he is just going to tell the listing agent to cut the price by the buyers commission and he will represent himself.
Rustico and others – no slants here…
ParticipantPatient renter gotcha… thanks for the explanation. Unfortunately I don’t have a good answer for ya because I have already put a few offers down on places that have been rejected over the past year. To me it looks like they are about 15% lower then they were back in 05 if that helps ya put a number down. Also budget wise I am looking at buying something that will more or less match my current rent, (even though it means throwing down a big dp)
SD Realtor
ParticipantPatient renter gotcha… thanks for the explanation. Unfortunately I don’t have a good answer for ya because I have already put a few offers down on places that have been rejected over the past year. To me it looks like they are about 15% lower then they were back in 05 if that helps ya put a number down. Also budget wise I am looking at buying something that will more or less match my current rent, (even though it means throwing down a big dp)
SD Realtor
ParticipantI asked the same question several years ago. My answer was no I don’t need one so I got my license and found a broker to work with.
SD Realtor
ParticipantI asked the same question several years ago. My answer was no I don’t need one so I got my license and found a broker to work with.
SD Realtor
ParticipantBuyerWillEPB that is a great response. You got a laugh out of me…
So here is what I would term a tolerable reason for a price range.
When a person lists their home with a realtor, on the listing agreement there is a section where you list how much you will pay the cooperating broker. Now SOME brokers will work out deals with sellers that state if they end up representing both sides, the commission on the coop side will be reduced.
Lets be theoretical –
So lets say you have Remax list your home. You will pay them say 2.5% to represent you the seller, this is known as the listing side. Let’s say you will also offer a cooperating broker commission of say 3% to the agent representing the buyer… (fyi in real estate this is also known as the selling agent believe it or not)…
Okay but then you work out a deal with the Remax agent and you say okay if you Mr Remax agent brings a buyer I will only pay you 2% as a cooperating broker commission.
So in that case it can be argued that it is justified that you list the home in a price range where the low price was 1% less then the high price. This indeed makes sense. Of course nobody prices in this manner AND you would need to get that agreement in place with your listing agent.
SD Realtor
ParticipantBuyerWillEPB that is a great response. You got a laugh out of me…
So here is what I would term a tolerable reason for a price range.
When a person lists their home with a realtor, on the listing agreement there is a section where you list how much you will pay the cooperating broker. Now SOME brokers will work out deals with sellers that state if they end up representing both sides, the commission on the coop side will be reduced.
Lets be theoretical –
So lets say you have Remax list your home. You will pay them say 2.5% to represent you the seller, this is known as the listing side. Let’s say you will also offer a cooperating broker commission of say 3% to the agent representing the buyer… (fyi in real estate this is also known as the selling agent believe it or not)…
Okay but then you work out a deal with the Remax agent and you say okay if you Mr Remax agent brings a buyer I will only pay you 2% as a cooperating broker commission.
So in that case it can be argued that it is justified that you list the home in a price range where the low price was 1% less then the high price. This indeed makes sense. Of course nobody prices in this manner AND you would need to get that agreement in place with your listing agent.
SD Realtor
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