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svelteParticipant[quote=EconProf]Svelte, you bring up good points. There are good and bad Technology has disrupted a lot of businesses and occupations, and the traditional commission model may be under siege.
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True. I don’t believe that the commission model will go away. It will still be around in many industries as there will always be consumers who need and want that model. But for those who don’t, there are now more options.[quote=EconProf]
Off topic somewhat, I think colleges and universities are about shrink considerably in number for a variety of reasons, not just COVID-19. So many other RE markets are facing severe downsizing, and many commercial buildings will go dark and fall in value, especially in certain parts of certain cities. This was the trend for shopping malls well before Coronovirus.[/quote]I’m a little worried about colleges. I’ve always told my kids that half of going to school isn’t the textbook knowledge you gain, half of it is learning social interactions. Those are needed as much now as 100 years ago. Are we going to be raising generations of hermits?
Same thing goes in my specific situation. Every week that passes I get a little more used to not spending my Fri and Sat eves on the town. And if things don’t open soon, the restaurants will fold and that option will be gone anyway.
We went to Dockside a couple of weeks ago for dinner…since it is outside, it has remained open. While standing in line, things sounded wildly loud, almost making me uncomfortable. I leaned over to my wife, “does it seem loud here to you?”. She shook her head. You’ve just adjusted to our quiet house 24 hours a day, she said.
svelteParticipantBeyond what I’ve described above, other areas where I thought a realtor should have alerted us to potential problems but they stayed silent:
– homes with aluminum wiring
– homes with PEX pipesWe toured homes with both of those things and our realtor failed to alert us to the fact that homes in those subdivisions had those characteristics. Even when going over the home inspection with us, not a peep. We had to read the inspections close and discover that on our own.
In one case we were able to negotiate a price reduction based on aluminum wiring, in one case we backed out of a deal due to PEX. Maybe I’m using the wrong term, whatever plastic piping it was they were using 20-30 years ago.
In any case, I feel that realtors should have discussed potential problem areas with us, especially since we had selected realtors familiar with the areas where we were looking.
As I said before, go in armed with all the knowledge you can get…don’t rely on anyone else.
svelteParticipantThis is all bringing back a flood of memories on dealing with realtors.
My father and I have had good ones that I would totally trust and bad ones that we felt didn’t look out for our best interests.
I saw several cases where the realtors talked amongst themselves to figure out ways to get the deal closed so they could get their $$, without regard to whether it was in the best interest of their client. In some instances, they actually hid information.
I truly believe the best way to go into a real estate transaction is not to rely on someone else for knowledge of the area, the home, or the process but instead to look after your own best interest and go in very well armed with knowledge and understanding of your needs and desires.
svelteParticipant[quote=EconProf]
I’d like to ask again about another approach to the subject of commissions. Have any Piggs tried the ForSaleByOwner approach while advertising “courtesy to broker”, meaning 2 1/2% or 3% commission to a broker who brings in a buyer?
Two unusual elements of today’s San Diego market make this approach especially attractive: our extraordinarily low inventory combined with high prices. So a $1.5 million dollar newer house with plenty of close neighborhood comps (thus establishing a fair price), could attract realtors with a ready buyer and earning the broker around $40,000. Why would a broker turn that down? Of course the seller would be have to be knowledgeable because he/she has no one looking out for the their interests–perhaps hire a RE attorney to review the paperwork?[/quote]I believe my dad did this once but to be honest I don’t remember which house or the outcome. It seems like it did work for him, but again I don’t recall the details which is why I didn’t respond to your initial question.
I think this is probably related to where he came up with his original theory that it is better to sell through a realtor and buy a FSBO without one. If you pay the buyer’s realtor you’ve already cut your savings in half and then when you factor in other costs such as MLS costs, lawyer fees, etc you really haven’t saved much. It seems to me he also stated that realtors like to deal with other realtors and are skeptical of working with FSBOs because they view them as inexperienced and troublesome which is another reason (beyond lack of commission) they steer clients away from FSBO.
That being said, he was doing most of these purchases/sales in areas where homes cost much much less than metro areas such as San Diego. In San Diego, 1% of purchase price can be $6K to $15K….multiply that to get 2-3% and you’re talking real money! He may have had a different opinion in that situation.
Hope that helps but I didn’t really add a lot of info.
svelteParticipant[quote=ltsddd]I get this weird feeling that the number of stocks-related posts on this forum is a good indicator of an impending market correction.
Here’s my prediction – we’re not going to make it past election day unscathed.[/quote]
History tells us that October can be an ugly month for stocks.
Sometimes even August “Sell in August and go away” (a take-off on the old Sell in May and go away) but looks like not this year.
svelteParticipant[quote=Coronita]
Since then, companies have gotten a lot smarter. Many have a company policy against you or a family member owning derivatives of the company stock….
[/quote]I wonder how that would hold up in court – how can you control what a family member does?
svelteParticipant[quote=Coronita]
read my comment about the GTI. I think for some VWs, forget which ones, they also went from a metal oil pan to a plastic one. So, if you are unfortunate and bottom out on something , it’s no longer just denting your oil pan…..
[/quote]I don’t know. My cars are babied. I’ve got a 16 yo car that doesn’t have a drop of oil on the bottom side. My mechanic called me out to the shop floor to show me that – he couldn’t believe not a spot of oil, tranny fluid, nothing.
I’ve been driving cars for 4 decades now and only once have I had a major problem with my car – a bent valve on a 1970 car when I had it during the 1970s. And I bought that with 87K miles on it so who knows what it went through before I got it.
Every other car, the worst I’ve had is alternators, water pumps and once a radiator. Maybe I’ve been lucky, but it has made me pretty brave when buying cars.
svelteParticipant[quote=scaredyclassic]
i don’t trust germany, the whole nation.vw cheated on emissions.
their cars suck.
they were nazis.
sorry, just never would even consider a german car.
my wife bought the mini, bmw related, over my objection.
damn german cars.the mini sucks so bad
of course, i dont really trust the usa anymore either.
we are moving toward a strange unsettling authoritarianism.
ok, so no german cars. no u.s.cars.
no french cars, too awful.
italian, no.
volvo? swedes? too expensive.
japan? i guess, ok.[/quote]
Man you gotta lot of prejudices!
just saying that reminds me of the movie “The End” when Dom Deluise tells Burt Reynolds “you gotta lotta rules about peein’!”
svelteParticipant[quote=gzz]
Golfs are sold in massive numbers in the third world, I doubt they are bad to maintain.
[/quote]I saw this on Craigslist the other day and it really, really called out to me:
https://sandiego.craigslist.org/esd/cto/d/la-mesa-2015-golf-sportwagen-sel-tdi/7182469738.html
Then I noticed it was a diesel and the appeal evaporated.
svelteParticipant[quote=Coronita]
Friends don’t let friends buy a Volkswagen product. Please don’t.
[/quote]Cars have come a long way in the last 20 years. There really aren’t many if any low quality cars for sale in the US any more.
Shoot, the worst of the cars now for sale score about as good as the best cars 20-30 years ago.
I have seriously considered VWs a few times but never pulled the trigger. Always found something that fit my personality better, but I certainly see how they appeal to other people.
My grandparents were big VW fans, owned a few beetles. My favorite was an early 60s black bug with a grey interior and grey cloth sunroof. My dad wanted to buy a Karmann Ghia but I talked him out of it and into a Sunbeam Alpine instead. Bet that ended up costing him more money while he owned it, but to me it was way more fun.
svelteParticipant[quote=Coronita]
Part of the problem is there is an inventory shortage.of new cars simply because factories are closed and/or supply chain issues.People like me were hoping with the Covid downturn, dealerships would be selling cars at firesale prices..The opposite is happening…. [/quote]
Gotta know where to look. A week ago today, I bought a brand new car with 27 miles on it for 25% off of sticker.
I was just tire kicking but when they said that, I changed my mind.
svelteParticipantMade it over to the nearest mead tasting room to our house this weekend…great stuff!
[img_assist|nid=27217|title=Mead Photo 1|desc=|link=node|align=left|width=466|height=581]
[img_assist|nid=27218|title=Mead Photo 2|desc=|link=node|align=left|width=466|height=576]
svelteParticipantWow the memories this thread is bringing back. In 1970, my dad offered to buy a house from a FSBO. Within a few of days, he changed his mind and decided to buy a different better house in another area for about the same amount of money.
So we had to drive over to the FSBO and tell them we had changed our minds. When we pulled up, they had their fifth wheel out front and were loading it up. We all slunk down in our seats while my dad walked up to the front door and broke the bad news.
We felt like scum. My family doesn’t do things like that. But in the end, I went to better schools and lived in a better house because of it. I sometimes wonder how different my life would have ended up had we bought the original house. I would have had a different education, different friends…would that have led to different values? Would I have ended up in San Diego?
svelteParticipant[quote=sdrealtor]
Svelte
I would generally agree with your dad’s assessment. Irony is that FSBO’s tend to be the most overpriced as they look at what neighbors home sold the highest and go up from there without adjusting for the lot size, condition or upgrades.[/quote]Having been around several FSBO homes, I think this is correct in many cases. Sometimes the reason they didn’t list with a realtor is (a) they want to keep more in their pocket and/or (b) realtors were telling them to sell for a price below what they felt their house was worth…so they handle it themselves and overprice their home.
That’s where patience comes in. The FSBO owner has made his bed and is often reluctant to admit defeat and list with an agent – instead lowering the price several times and waiting. Eventually the house becomes a good deal and that’s the time to pounce. Worked for my dad, though I’ve never tried it.
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