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sdrealtor
ParticipantSelling 3 or 4 houses a year is not easy and requires a full time effort for most. 90% of what we do, we dont get paid for like most sales people. Here’s the math…let’s say you sell 4 average priced homes (600K). At 2.5%, that is 15K each or a total of 60K. The broker you work for takes a 1/3rd maybe more. Now you are down to 40K. Now you have to pay both sides of Social Security (12%)and taxes (let’s be genereous and say 20%). Now you are down to 27K. Throw in health insurance and business expenses and you have about 15K left. All this for the pleasure and aggravation of putting up with late nights/weekends, clients who lie to you/have no loyalty and a very unpredictable income stream.
Yeah..i’ll bet you are all salivating over this job. The truth is we have too many realtors, many of whom are underemployed. I’d venture to guess that at least 50% would do better by giving up their false dreams of riches and taking a job at Nordstroms!
ParticipantUpgrades to a model can easily exceed $75K but i havent seen either home. As for overlooking a community park/open space. I’d rather face that than another house 10 feet out my back window but you are missing the point. I’m just pointing out that you analysis was flawed. Here’s the other possibly even bigger flaw. The house sold at 625 and you are comparing it to a house on the market with a 550 to 599 value range. You are assuming it will sell at the bottom of the range. It might and it might not, but I’d bet the seller is looking for 575 to 599 right now. Will he get it….who knows?
As for Zillow…it stinks right now. Hopefully it will get better. It has my house $200K below what it would sell for today. if I put the Zillow price on my house I would have at least 50 offers in a week…guaranteed!
ParticipantProperties rotting on the shelf are generally overpriced. Sometimes it is a bad agent, sometimes its an unrealistic seller and sometimes its both. It’s amazing that homes sit on the market and once they are reduced they eventually sell…EVERY TIME! There is a buyer for every home as long as the price is right.
A fast sale is not a bad thing its a good thing. Unfortunately most dont understand that. This is a very active market and there are lots of people looking for the right house at the right price. Price it right, which is the price thats fair for the buyer and the seller and they sell quickly. If you price it too low, you’ll get a stack of offers and it will be obvious. I just wrote an offer on an underpriced property in Carmel Valley at $1.2M. There were several offers within 3 days while other overpriced listings as sitting.
As for connecting buyer’s and seller’s being easy, you are simplifying things. Try selling your furniture at a yard sale and see what you get….pennies on the dollar. Think the Internet is the solution? Better yet, put it on ebay or craigslist…..may be 25 to 50 cents on the dollar.
Every one wants the MLS to be free but no one understands how expensive it is to maintain, monitor and police such a system. It is not cheap and the liabilities as to making representaions are huge. Could it be done on a national level. Sure, it probably will someday but that day is not close. Real Estate transactions are very complex. Lawsuits abound and if most of understood all of the legal issues we deal with on a daily basis you would know why we exist.
ParticipantSorry but we’ve never met 😉
ParticipantActually he could be wrong on one pretty significant point. If you are 55 or will be when you plan to move to OC you may be able to use Prop 13 to take your tax basis with you. Make sure you factor this into any decision you make. Prop 13 is a major reason I plan on never selling my house and passing it onto one of my children who will enjoy a very low tax basis.
ParticipantParticipantParticipantOnce again the danger of not understanding the data. The $625,000 was for the Former Model with tons of upgrades, a prime location and a much larger than average yard. Better properties always sell for premium prices. Not sure about the others but it looks like “this loser” actually paid a more than fair price even in light of the other cheaper priced model matches.
Prices are softening but the real estate market is a pretty darn efficient market. It’s because of the information systems created by Realtors. Homes typically sell for what they should while homes priced incorrectly rot on the shelves. If there were no Realtors and no Multiple Listing Service which is not a public utility but rather a system paid for and supported by Realtors homes would be very difficult to sell at any price.
ParticipantGood Luck! It’s frequently impossible. I presented an all cash offer to a seller today on a property in the mid $1M’s. The last two comps (different models) just closed 150K lower than their model matches. This seller is asking $200K more than last sale. My client offered all cash, no contingencies, all terms at sellers choice but $50K below the last sale of this model basically saying they would meet the last comp. They wouldnt even respond. My client has an open time frame and will buy when they find the house they want priced fairly.
Me thinks the seller might learn a very painful lesson!
ParticipantDont pay too much attention to newspaper advertising. Deadlines are frequently weeks in advance and what you see re: real estate is old news. Walk-in and you find the “Special of the day” on a blackboard. And yes the salad bar is $4 extra 😉
ParticipantThat makes a little sense but what I hear is blanket condemnation of Realtors and very little of Lenders. I’m getting ready to sell a past clients house. I sold it to them 3 years ago and got them hooked up with a good lender that got them a decent loan despite some credit blemishes (5.5% 7/1 arm). He got laid off a few months ago and is moving to LA for a new job. When he got laid off he re’fied w/o callng me for a referral. He ended up with an option arm that has a 1.5% start rate but an 8% amortizing rate! That’s 2.5% higher than had and he has been in a neg am situation of $1,200/month on a 300K loan. He would have been better off taking a no cost HELOC from his local bank for 10K to get him through but that wouldnt have put a few grand in the lenders pocket. If I could get my hands on that lender I’d……….
BTW, I drive a 4 year old american made car that’s paid off, have never done any cheesy advertising, have 1 cell (not a Treo) that meets my communication needs, no stickers on my vehicle, a nice god given smile that’s never been whitened and I have considered my self a well educated professional in every job that I have held which included VP of Sales at publically traded company and Director Of Strategic Marketing at an organization w/ $400M of annual revenue.
There are plenty of Realtors that fit your description just like there are many (fill-in the blank with a race/religion/ethnic group) that fit stereotypes. If you choose to relie on stereotypes in judging ANYONE for ANY REASON you’ll get exactly what you deserve and not what you could have.
ParticipantLOL, during Morning rush hour it could take 45 minutes to get the freeway from SEH.
ParticipantSorry… a poor attempt at humor. Personally I think its a nice neighborhood and have many friends living there though I’m not crazy about the location. I couldnt imagine commuting anywhere South of Carmel Valley from there.
ParticipantI stand corrected 64 active listings and 20 pending listings as of tonite. Last time I checked was late 2005 and there were about 48 actives. That means inventory is up more than I thought (33%). It’s not an area I follow too closely. Just curious as to what you like about the location…is it the view of the old dump or the traffic choked single road in and out.
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