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urbanrealtor
ParticipantHey ZK.
The only part I wanted to comment on at this time is the licensing part.
Until this year, it was illegal for an investor buying a property in NOD or NOT status to use an agent. This was due to a well intentioned but problematic belief that agents would just be taking advantage of distressed sellers.Technically the law said that the agent needed to carry a certain type of bonding (which did not exist). This year, inevitably (considering the number of nods and nots), their was a court case that largely nullified this. I will ask counsel about it and repost more tomorrow if you like.
The point is a license used to be kind of a dangerous thing when dealing with foreclosures.
Participant[quote=SD Realtor]
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
[/quote]Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?
Participant[quote=SD Realtor]
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
[/quote]Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?
Participant[quote=SD Realtor]
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
[/quote]Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?
Participant[quote=SD Realtor]
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
[/quote]Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?
Participant[quote=SD Realtor]
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
[/quote]Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?
ParticipantAlright, while I see the benefit in income and employment rates as indicative of the relative health of the local economy, I am not sure about using these rates to directly measure the health of real estate. Eg: the economy vs. real estate in most of the 90’s.
Also, viewing SD county as a single monolithic market is a little like applying normal nationwide economic models to a national housing market. Don’t get me wrong. They do have some amount of marginal utility. However, its limited. Certainly it is better than defining it as, say, the “southern california” market. The housing market between say Temecula and La Jolla have little in common in any economic or real property category.
If you are looking to see the bottom I would recommend looking for some benchmarks based on market fundamentals.
One benchmark is price stability. Have a look at comparable closings over time.Feb 401
Mar 517
April 428
May 415
June 477
July 390These numbers are are the price per square foot of 2br units in 92101 that are between 700 and 1100 square feet in size.The numbers indicate a wide range and relative instability in that micro market.
Another benchmark to consider is the relative cost compared to rent. In distressed sections of central SD (eg: City Heights), one can buy with 5% cash and the rent will be more than mortgage. When buying is cheaper than renting, generally its a pretty good bet.
Yet another benchmark is the cost of construction. Some areas to the Northeast of town are curredntly selling for less than 175 per square foot (think Menifee). At that price it is often close to the price of construction.
While finding the absolute lowest price in a downturn is difficult and ill-advised (market timing in the boom did not work well either) these are some tricks I use. If you see all three benchmarks line up, probably prices are done falling for a while.
Again my opinion, but I have seen a lot of people new to investing have relative success with this.
ParticipantAlright, while I see the benefit in income and employment rates as indicative of the relative health of the local economy, I am not sure about using these rates to directly measure the health of real estate. Eg: the economy vs. real estate in most of the 90’s.
Also, viewing SD county as a single monolithic market is a little like applying normal nationwide economic models to a national housing market. Don’t get me wrong. They do have some amount of marginal utility. However, its limited. Certainly it is better than defining it as, say, the “southern california” market. The housing market between say Temecula and La Jolla have little in common in any economic or real property category.
If you are looking to see the bottom I would recommend looking for some benchmarks based on market fundamentals.
One benchmark is price stability. Have a look at comparable closings over time.Feb 401
Mar 517
April 428
May 415
June 477
July 390These numbers are are the price per square foot of 2br units in 92101 that are between 700 and 1100 square feet in size.The numbers indicate a wide range and relative instability in that micro market.
Another benchmark to consider is the relative cost compared to rent. In distressed sections of central SD (eg: City Heights), one can buy with 5% cash and the rent will be more than mortgage. When buying is cheaper than renting, generally its a pretty good bet.
Yet another benchmark is the cost of construction. Some areas to the Northeast of town are curredntly selling for less than 175 per square foot (think Menifee). At that price it is often close to the price of construction.
While finding the absolute lowest price in a downturn is difficult and ill-advised (market timing in the boom did not work well either) these are some tricks I use. If you see all three benchmarks line up, probably prices are done falling for a while.
Again my opinion, but I have seen a lot of people new to investing have relative success with this.
ParticipantAlright, while I see the benefit in income and employment rates as indicative of the relative health of the local economy, I am not sure about using these rates to directly measure the health of real estate. Eg: the economy vs. real estate in most of the 90’s.
Also, viewing SD county as a single monolithic market is a little like applying normal nationwide economic models to a national housing market. Don’t get me wrong. They do have some amount of marginal utility. However, its limited. Certainly it is better than defining it as, say, the “southern california” market. The housing market between say Temecula and La Jolla have little in common in any economic or real property category.
If you are looking to see the bottom I would recommend looking for some benchmarks based on market fundamentals.
One benchmark is price stability. Have a look at comparable closings over time.Feb 401
Mar 517
April 428
May 415
June 477
July 390These numbers are are the price per square foot of 2br units in 92101 that are between 700 and 1100 square feet in size.The numbers indicate a wide range and relative instability in that micro market.
Another benchmark to consider is the relative cost compared to rent. In distressed sections of central SD (eg: City Heights), one can buy with 5% cash and the rent will be more than mortgage. When buying is cheaper than renting, generally its a pretty good bet.
Yet another benchmark is the cost of construction. Some areas to the Northeast of town are curredntly selling for less than 175 per square foot (think Menifee). At that price it is often close to the price of construction.
While finding the absolute lowest price in a downturn is difficult and ill-advised (market timing in the boom did not work well either) these are some tricks I use. If you see all three benchmarks line up, probably prices are done falling for a while.
Again my opinion, but I have seen a lot of people new to investing have relative success with this.
ParticipantAlright, while I see the benefit in income and employment rates as indicative of the relative health of the local economy, I am not sure about using these rates to directly measure the health of real estate. Eg: the economy vs. real estate in most of the 90’s.
Also, viewing SD county as a single monolithic market is a little like applying normal nationwide economic models to a national housing market. Don’t get me wrong. They do have some amount of marginal utility. However, its limited. Certainly it is better than defining it as, say, the “southern california” market. The housing market between say Temecula and La Jolla have little in common in any economic or real property category.
If you are looking to see the bottom I would recommend looking for some benchmarks based on market fundamentals.
One benchmark is price stability. Have a look at comparable closings over time.Feb 401
Mar 517
April 428
May 415
June 477
July 390These numbers are are the price per square foot of 2br units in 92101 that are between 700 and 1100 square feet in size.The numbers indicate a wide range and relative instability in that micro market.
Another benchmark to consider is the relative cost compared to rent. In distressed sections of central SD (eg: City Heights), one can buy with 5% cash and the rent will be more than mortgage. When buying is cheaper than renting, generally its a pretty good bet.
Yet another benchmark is the cost of construction. Some areas to the Northeast of town are curredntly selling for less than 175 per square foot (think Menifee). At that price it is often close to the price of construction.
While finding the absolute lowest price in a downturn is difficult and ill-advised (market timing in the boom did not work well either) these are some tricks I use. If you see all three benchmarks line up, probably prices are done falling for a while.
Again my opinion, but I have seen a lot of people new to investing have relative success with this.
ParticipantAlright, while I see the benefit in income and employment rates as indicative of the relative health of the local economy, I am not sure about using these rates to directly measure the health of real estate. Eg: the economy vs. real estate in most of the 90’s.
Also, viewing SD county as a single monolithic market is a little like applying normal nationwide economic models to a national housing market. Don’t get me wrong. They do have some amount of marginal utility. However, its limited. Certainly it is better than defining it as, say, the “southern california” market. The housing market between say Temecula and La Jolla have little in common in any economic or real property category.
If you are looking to see the bottom I would recommend looking for some benchmarks based on market fundamentals.
One benchmark is price stability. Have a look at comparable closings over time.Feb 401
Mar 517
April 428
May 415
June 477
July 390These numbers are are the price per square foot of 2br units in 92101 that are between 700 and 1100 square feet in size.The numbers indicate a wide range and relative instability in that micro market.
Another benchmark to consider is the relative cost compared to rent. In distressed sections of central SD (eg: City Heights), one can buy with 5% cash and the rent will be more than mortgage. When buying is cheaper than renting, generally its a pretty good bet.
Yet another benchmark is the cost of construction. Some areas to the Northeast of town are curredntly selling for less than 175 per square foot (think Menifee). At that price it is often close to the price of construction.
While finding the absolute lowest price in a downturn is difficult and ill-advised (market timing in the boom did not work well either) these are some tricks I use. If you see all three benchmarks line up, probably prices are done falling for a while.
Again my opinion, but I have seen a lot of people new to investing have relative success with this.
ParticipantGeorgian Roulette?????
ParticipantGeorgian Roulette?????
ParticipantGeorgian Roulette?????
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