Realtors - Am I wrong to be pizzed??

[masher44]

Realtors are no different than doctors or lawyers. Some good some bad.

Realtors are on call 24 hours a day and work for the clients, both buyers and sellers. Clients run late.

We show only by appointment and it never fails that most of our appointments run behind/ahead, however I only show my own property so I can only piss myself off.

In your situation, any showings are good showings. One thing I try to do is only work with a realty company that only shows their own listings. It is much more personal. Also I feel the smaller firms give better service. I do not like a C21 with 40 agents potentially running through my house.

10% of the realtors do 90% of the business. Find the best ones, "boutique" style realty firms are the way to go if they will take your listing. It is smart to get friendly with a good realtor in your area.

It is a very weird market right now, a good realtor makes all the difference. Many realtors are struggling now and a last minute appointment to show your house may make the difference between paying their bills next month. He could have blown off your house and just went home. I do not blame realtors right now, it is a very tricky market and they are trying to sell something, while dealing with people like MMark (no offense) making low offers. It is the way to go in many markets right now but very frustrating to deal with low ball offering clients. By law they need to present all offers but the one who has my property listed was instructed not to unless it is realistic. They are dealing with Sellers that took a huge hit and are already have a lesser value for their house and Buyers who want to steal something.

I have done FSBO on my personal places and sometimes it works and sometimes it doesnt. It IS a huge hassle to do a FSBO and in my opinion a 3-5% sales commission is warranted in most cases. Even if your house sold after 5 showings, it may have taken the other 10 listings he sold 100 showings, so it averages out.

Selling a house in a boom market or a slow market are both PITAs. I have property owners here that are realtors and a relative in MA where I flip houses. I have no problem paying them a commission. It should be relative for you. AZ is a bit rough too and maybe you can score a deal out there when you buy.

 

[MarylandMark]

Flood zones should be on the appraisal as well.

You already have it listed so I am not going to get in to yea or nay about Realtors. Realtors are going to try to say you have to use them or you will not get a sale or will sell for less or whatever- why wouldn't they? That is how they make their living. Expenses are 6% higher so have to sell for at least that much more just to break even over FSBO..

We did 68 appraisals last month- each one we have to put 3 recent sales and 2 active listing to include days on market. 5 comps per order? We analyzed 600-700 sales to get the right comps for 68 reports. In my market area- MOST sales that settle after being on the market for over 3 months end up selling for 25%+ lower than the original list price.

Figure how much it cost to have your home each month:

Mortgage
Insurance
PMI if any
HVAC at "comfort' level (60 Winter/ 75 Summer ??)
Insurance
Yard service since you will be so far away
Etc

Say that number is $10 a month (for sake of conversation using low numbers so we don't get caught up in the actual numbers).

If you are asking $200 and someone offers $150; in 5 months if you are still in your house you would be losing money now vs taking the first offer even though it was 25% less than your asking price..

I hope you get 10 times what it is worth but don't want you to pass on a good offer and regret it later. I am talking for my experience selling my home in 06...

 

[MarylandMark]

I do not blame realtors right now, it is a very tricky market and they are trying to sell something, while dealing with people like MMark (no offense) making low offers.

No offense by any means. I know it is going to take me 20-30 offers to buy a house- all I need is that one person to say yes. Housing has to stop dropping before it can stabilize and has to stabilize before we see any appreciation.

My offers are based on the house is going to be equal to what I pay for it for the next 2-5 years all the while me pay X amount a month in bills for it.

$5K a month for a house and bills = $60K a year = 1/4 mil in 4 years to be what it is "worth" what I would still owe on it? Better off buying a 39 Cig w/700's. LOL

So- low ball I go; like I said- all I need is just one to say yes.

 

[masher44]

Flood zones should be on the appraisal as well.

You already have it listed so I am not going to get in to yea or nay about Realtors. Realtors are going to try to say you have to use them or you will not get a sale or will sell for less or whatever- why wouldn't they? That is how they make their living. Expenses are 6% higher so have to sell for at least that much more just to break even over FSBO..

We did 68 appraisals last month- each one we have to put 3 recent sales and 2 active listing to include days on market. 5 comps per order? We analyzed 600-700 sales to get the right comps for 68 reports. In my market area- MOST sales that settle after being on the market for over 3 months end up selling for 25%+ lower than the original list price.

Figure how much it cost to have your home each month:

Mortgage
Insurance
PMI if any
HVAC at "comfort' level (60 Winter/ 75 Summer ??)
Insurance
Yard service since you will be so far away
Etc

Say that number is $10 a month (for sake of conversation using low numbers so we don't get caught up in the actual numbers).

If you are asking $200 and someone offers $150; in 5 months if you are still in your house you would be losing money now vs taking the first offer even though it was 25% less than your asking price..

I hope you get 10 times what it is worth but don't want you to pass on a good offer and regret it later. I am talking for my experience selling my home in 06...

there is a chance the flood zone is new, or newly designated.

 

[masher44]

No offense by any means. I know it is going to take me 20-30 offers to buy a house- all I need is that one person to say yes. Housing has to stop dropping before it can stabilize and has to stabilize before we see any appreciation.

My offers are based on the house is going to be equal to what I pay for it for the next 2-5 years all the while me pay X amount a month in bills for it.

$5K a month for a house and bills = $60K a year = 1/4 mil in 4 years to be what it is "worth" what I would still owe on it? Better off buying a 39 Cig w/700's. LOL

So- low ball I go; like I said- all I need is just one to say yes.

I agree but it doesnt sound like you are buying in an area that will stay depressed forever. There will be significant appreciation realized in real estate in the next 5 years. That 240k you will spend in owning will go much farther than renting IMHO. Especially waterfront property in your area. I lived there from 97 to 2000 and I could kick myself for not grabbing a couple of the Ches Bay waterfront lots I was selling on the Northern Neck for 60 to 80K. :ack2:

 

[MarylandMark]

there is a chance the flood zone is new, or newly designated.

Thanks for clarifying. I should have stated clearer that I was letting DonziGirl know another place to check to see if it was a flood zone when she purchased. Knew what I was thinking; didn't put it on post very well...

I agree but it doesn't sound like you are buying in an area that will stay depressed forever.

Without a doubt! 20 miles from DC with the Potomac at our door step and me being here- chit is going up sooner than later and higher than ever!!

:sifone:

Everyone wants to buy as low as they can- for me I'm just the perfect storm of a buyer a know it. Awesome credit, 50% down payment, non-contingent, etc- I'm going to get a deal or not buy. All of them want/need to sell more than I want/need to buy is my attitude.

Anyway- my numbers were more to Bouy- even if an offer is lower than he would like; all offers are worth considering. Renting is "wasted" money without a doubt and a short term strategy. For me it saved me over a $1/4M by selling house at top of market and buying back in at the bottom.

I remember you telling me where you were- I wish I had a few of those lots right now as well!!!

You are pretty smart- how did you get crossed up with that cross dressing Stecz again?

 

[masher44]

I am in Oklahoma now but worked on several waterfront deal in King George County and Northumberland County VA and blew all my money on other things than good investments. I am from New England and went to work for Stecz in 1992.

I think Bouy market will have more suitable comparables for him to establish his bottom line. Waterfront is tougher, lots more factors to consider IE lot size, water depth etc etc.

Residential markets are much easier to set pricing at, most likely has several recent comps to look at and if his improvements are better than what the comps sell for he will be in good shape.

 

[MarylandMark]

I was just joking about the Stecz thing...

All very good points you none even if you are friends with the swine

 

[mragu]

True true true!!!

I'm house shopping and my theory is if I'm not embarrassed by my offer than it is not low enough.

2.2M foreclosures last year; 6M+ predicted in the next 2.5-3 years...

My offers in the last 2 months:

$360K list price- I offered $230K. Neat smaller house, needs $150K to get it to where I want it.
$635K list price- I offered $380K. Needs $50K in updates (Kitchen).
$835K list price- I offered $600K Really like this one so went higher than the $540K I wanted to offer and needs nothing.

The one I looked at today is listed at $399K, down from $615K and I'm going to offer in the $280K range. It is still under construction and a short sale- needs about $80K to complete it.

All my offers come with a "commitment to lend letter" (not a BS pre-qual or pre-approval) as well as 1.5% earnest money deposit.

If you have a SERIOUS buyer you will know it

Mark, When making thes offers, are they educated offers on the pieces you are looking at or are you just taking the asking price and throwing a number at it? You are looking at numbers on homes from 360K to 835K which is quite a range in numbers. Are you working with a realtor or going about this alone?

 

[MarylandMark]

Mark, When making thes offers, are they educated offers on the pieces you are looking at or are you just taking the asking price and throwing a number at it? You are looking at numbers on homes from 360K to 835K which is quite a range in numbers. Are you working with a realtor or going about this alone?

I'm a Licensed Appraiser in Maryland. Last month we did 68 appraisals. That means we looked at 600-700 recent sales and listings to include days on market, original asking price vs sold price, seller subsidy, etc. I've also been in the area 20+ years which helps me know what is going to go up/down/hold steady in general. Example- I know some places with awesome homes that are bargains- but once building starts to pick up they have permits to expand that area 4-6 times the size it is now. Most private sellers will never be able to complete with a builder so I wouldn't buy over there. My 5 year old house would be priced at what the builder would be selling a brand new home for- plus the builder would be offering closing help, free upgrades, etc.

All my offers are in writing, with earnest money deposits of at least 1.5% and with multiple pages of data of what has sold and currently listed in the immediate market area. I don't "fluff" the CMA's to sugar coat my "low ball" offer either. My offers are what I think the property is really worth minus 10-15%. That gives me some wiggle room as well as protects me some what from potential future/continued drops in the market.

As far as the big swing in asking prices- that is mainly the sellers doing. Some are more realistic than others, others owe that much or whatever. They are all dreaming in my opinion and all the homes I listed above except one have been on the market over 6 months. One has been on the market over 1100 days! Why so long? Because it is over-priced by that much. They want 15% more than they paid in 2005 for it!

I'm looking to be in a house for around $500K- either turn key or work needing done included in that price. The one I offered $600K one is really that much more of a house so willing to go up. I'm not pushing the limits of what someone will loan me like a lot of people did the last 6-8 years so going up in not an issue if it is a good value to do so.

 

[Buoy]

A lot of insight in all this guys - thanks.

The realtor that showed up yesterday was from another realty Co., so I can't be too pizzed at my realtor.
I agree the FSBO would be better for the wallet, but a lot of work, and as I stated earlier, I only have a short time and need to be out of it.
MM - I agree on the thing about not over-looking a low offer - especially just to get out of here. I'd be thrilled if we can make a couple bucks, but if an offer comes in that will cover what's owed and the realtor commision I'll probably take it and walk.
Looking to rent out in AZ for a little while until we figure out what part of town we want to be in. I'm going to be looking for a job out there, so that could also affect where we buy.

I didn't mean to offend anyone about the comments on the couples age/dress, they just didn't seem like the type of customer for this house. In reality, I don't care who they are, as long as they buy the damn place.
I understand that everything that I have done around here may mean nothing to the next person, but it at least sets it apart from the standard house handed over by the builder.

I guess I was more just pizzed because I just got back from a 48hr 500 mi round trip to visit the whole fan damnly (which is always tiring and stressful) to come home and be told to leave the house again, and they didn't even show up for over an hour later than they scheduled.

 

[MarylandMark]

Bouy- I wish you the best of course dude.

The reason I am saying a lot of what I am saying is because 2 weeks after I FSBO listed my house I had an offer on the table which ended up being the same amount I took 5 months later. I was like who the F do they think they are offering me that at the time. 5 months later I was just about to do another price drop when it sold. The buyers have lost about $300K in equity since then... Ch-ching for me, ouch for them

 

[jhenrie]

I'm sorry , if you're serious about getting out , don't make it hard to see. Might be a bit tough with the pets but f the appointment crap , just a call ahead should be all they need to do. If everybody else wants an appt , they are coming to see yours more often than the appts. Realtors working with a buyer going house hunting will know when they are coming in but youll still get some more last minute calls . Just don't make it a pain in the butt to see !!!

 

[YankeY]

Was supposed to be only pre-qualified that looked at it.
Maybe this young couple in torn-up jeans and hoodies could afford it, maybe... but, I don't think they would appreciate the crown mould, hard wood floors, cabinet trim, two-level deck, Oak trim, Antique French doors etc... that I built here, over, the foreclosed rental place down the street that is selling for less
QUOTE]

We've bought many houses, and we always do it on a fast pace over one or two weekends because our relocations are always fast paced (20-35 days average), so our packed schedule usually ges messed up, but our realtor always contacted before we showed up off schedule. I will NEVER go into a house with the people who live there - way too awkward.

But I can also say there are a lot of salesmen who lost a sale because they prejudged my ability to pay and treated me like **** because I didn't dress up for them. Looks can be deceiving.:sifone:

 

[Cash Bar]

Hell, I AM THE REALTOR and if you know me before we go looking at properties I will most likely dress casual. It's hot here.

If you're a new client, or we are meeting a another Realtor, I will usually at least put on some Tommy Bahama.

I never judge my clients.... and I expect they wouldn't waste my time if they weren't qualified.

 

[MarylandMark]

and I expect they wouldn't waste my time if they weren't qualified.

This would be fun but I've met you in person so can't be me to do it.. :sifone: