Depends on your list/asking price!Quote:
Originally Posted by dan_pdx
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Depends on your list/asking price!Quote:
Originally Posted by dan_pdx
^^^^^^
exactly!
Sure, but that was the other part of the post…. how many months of inventory are on hand at your price point, with your amenities, lot size, etc. - there are certainly a lot of strategies, but the two ends of the spectrum are price high, be patient, advertise like crazy and be willing to move price down slowly OR underprice and move it quick, but basically you’re taking highest and best after a weekend of open houses. So, do you go $495k and hope she sells in 3 days for $515k or do you start and $550k and hope someone in the first 90 days can’t live without it and offers $535k and then beats you up on $15k of concessions. That’s the game, but it should all be within a pretty narrow band if you’re using a real professional. It’s not complicated, but it’s hard to manipulate as are most relatively unrestricted markets.
I swore off this thread a long time ago, and will probably put it on mute again, but as a semi-retired RE professional - the best advice for both buyers and sellers - especially two that are as intelligent as Danno and dan_pdx - is…. Dig in a little. Find a reputable broker that you have excellent communication with, enjoy their company and go all in. Meanwhile being patient. Think about the big picture. Are you handy, willing to do improvements before or after the sale, have a network of contractors? Monetize everything. Know what you’re paying for, make the best decision you can and move on.
That thought definitely crossed my mind - by reducing the buyer's commission for offers under list price, we're incentivizing them to push their client to offer list price, which is maybe a little morally gray. But given that it's accepted that offering 3% to the buyer's agent will yield more traffic than offering 1%, I feel like what we're contemplating is a difference in degree but not in kind.Quote:
Originally Posted by lowsparkco
One thing with our proposed commissions schedule (which our agent may just laugh and reject, TBD) is that it makes it financially feasible for us to sell at, say, 5% under list. Under the traditional model of a fixed 5% or 6% commission to the agents, if the best offer we got was 5% under list, we'd just hold on to it.
Thanks mang! Roger that on the house prep, we're going to check all those boxes except maybe the open house. I know supply is still low and houses are selling. Ours has some good points, we'll see how things go.Quote:
Originally Posted by lowsparkco
Quote:
Originally Posted by lowsparkco
Yeah, in our case, we came up with a number that works for us financially and asked our listing agent if it was in the realm of reason. She pulled comps etc and came back and recommended listing at the number we had mentioned. So...would she have come up with a different number if we hadn't told her what we thought we needed? Maybe. It's not arbitrary from our point of view because it's about what we need to make the transaction reasonable for us, otherwise we'd just keep it.Quote:
Originally Posted by Danno
I actually had a "we buy houses in cash!" guy come through and look at the house. He was refreshingly direct, said if his company was listing the house they wouldn't do any work and would list it about 5% under the number our agent suggested. Then he said "the amount we could pay you if we were listing at that price is insultingly low, so we don't even need to talk about it." Ha! Has anyone in this industry ever been that straightforward? I got him to spill the beans and his number was something like 30% under our listing price, but I appreciated the transparency.
Re: the incentive structure I proposed, if we sell for 10k less than listing, everyone (seller and the two agents) makes about 3,300 less than they would at list price, and so on at subsequent lower price points. Like I said above, that makes it possible for us to consider price points that would otherwise be untenable...doesn't that align our interests with the agents? Wouldn't they rather see a sale and some commission (even if it's less than the full 3%) than fart around with the showings and going back and forth on offers and winding up with no deal and no money?
Working an equation backwards rarely works, but there’s nothing wrong with a fishing expedition if everyone is onboard.
What seems to be absent is other broker opinions. Get the house really ready to sell. Really ready. Then have her bring trusted brokers in (give away a few gift cards or restaurant vouchers) and have them do a real CMA for you. Look at all the comps closely and make up your own mind.
Honestly, I'd just offer 2.5/2.5 % commission, and price it at what you're comfortable clearing. I'd also be up front about not even entertaining low offers.
But if I were going to propose a tiered compensation, I'd go the other direction. So offer straight percentage to the buyer's agent, and incentivize the listing agent with an escalation.
I'll use 500k @ 2.5% for an easy math example
Sell at list - agent gets $12500
For every thousand over, listing agent gets an extra $200
At 10k over that's about 2.85% and at 15k it's 3.0%
Yeah, I hear that re: working the math to come up with the number we asked for. Honestly was hoping for an independent assessment. She would say that her independent assessment supported the number we mentioned, I'm sure.Quote:
Originally Posted by lowsparkco
I get it, but the number we're comfortable clearing is also the very top of the reasonable range - getting more than that is not in the cards, I think. I guess I came up with those tiers because I was thinking more about how to make a less than list deal palatable vs. maximizing our listing agent's incentive to sell for above list. I'm happy to offer our listing agent 20% of any amount over list, do you think that would move the needle?Quote:
Originally Posted by Ted Striker
I don't think it'll move the needle because you're going to ask top dollar. Plus, an agent that needs extra incentive (or disincentives) should be avoided at all cost. You're also going to be in the pointy end of the market.
Kinda bummed that Spokane didn't work out. That's such a cool house (random pandora's boxes that previous owners left behind aside)
QFT. We've squashed a bunch of gremlins, and the only remaining issues are cosmetic. With no state income tax and ADU rental income, the financials here are great and I did like the best gravel ride of my life 7 miles from the house on Sunday, when I'm a little more fit, I can ride to that ride. Alas, Mrs PDX is doing a fair amount of work travel, and getting to the east coast from here is crappy, and in other ways, we're not quite jelling here.Quote:
Originally Posted by Ted Striker
Have you tried jamming?
Now I have that damn song stuck in my head!
If Redfin will accept 1.5% to list a home (less if you buy the next one with them) why would you offer a listing agent more? And if the listing agent is at 1.5% why offer more than 2% to the buyers agent unless the price is sub $300k. If over $1M, I would grind them lower depending on the price.
March 2024 in Greater Bozeman Area is 2.25 months of inventory. Down 30% from February. Definitely still a seller's market for most SFH.Quote:
Originally Posted by Kevo
Greater Big Sky (including Gallatin AND Madison Counties) is currently at 4.66 months of inventory and coming down. Madison County is essentially Moonlight Basin/Big Sky Mountain Village. If you exclude Madison and calculate for Gallatin only aka The Meadow it's just a hair over 6 months supply so pushing it into Buyer's Market territory. I suspect that number will fall back into the 5s when we get April's numbers.
Median sales price still been forging upwards all along.
Been shopping for insurance after getting notice of non-renewal. Best I've done is $3500. Almost triple my current and that quote is $1200 less than 2nd best. Albeit, my Lemonade premium was $1200 less than any other quote. So, not that outrageous in the larger scheme of insurance inflation and general inflation. Still hurts.. it's gotta be hurting home sales around here. High rates and high insurance. The next best quote I got was $4600.
Hoping chaos creates opportunity down the road.
Have you tried playing with the deductible?Quote:
Originally Posted by 4matic
Coworker of mine quoted raising their deductible 5k and their quote went down like $4900. They literally wanted them to pay almost 5k for 5k worth of insurance. They were coming off 2 claims in 2 years so they were getting screwed no matter what, but that just seems egregious.
The hardest city to buy a house in is now ATL. So many people moving here (mostly young people; now the 6th biggest metro in the US), and without a lot of inventory and sizable down payment the outlook is bleak for those buyers. Doesn’t get better when they estimate that over 10% of the city’s rental units are owned by 3 institutional landlords too.
https://www.wsbtv.com/news/local/atl...PE6M7P55IUR5I/
Guess that’s why there’s so many cranes in the sky building apt high rises and the “affordable” communities are now 45 mins - 1 hr outside town.
Selfishly, I hope it all keeps up until we leave town permanently, but realistically I know it’s not good for everyone as a whole.
More money more problems
$5k deductible saves me $20 more a month. The higher quote is for a $5k deductible. I declined 25% rebuild overage to save $40 a month.Quote:
Originally Posted by singlesline
Most “brokers” don’t even call back. The agent I contacted took a week to get back and says she’s so busy had I not followed up she’d have not gotten back to me this week. Not a single one has answered within 24 hours.
How are lenders handling the insurance exits since going without is an event of default under any loan/mortgage?
Sell it all move to slab city live in an old bus. Make wind chimes out of roadside garbage. Problem solved.Quote:
Originally Posted by 4matic
I assume these are CA fair plan quotes at those prices? I’ll PM you the contact info for my broker if it’ll help.Quote:
Originally Posted by 4matic
No. Full HO-3 plans. Sage is my new carrier (un-admitted) and Safeco (admitted) was the $1200 more with a higher deductible. Fair Plan only covers major perils so if you want full comprehensive you have to get additional coverage.Quote:
Originally Posted by neufox47
I’m not worried about the un admitted part because the actual wild fire risk and total fire loss to my location is very low.
I live in the dry, timbered urban-wildland interface in Montana. House is insured by State Farm. I wonder why they haven't come for me yet.
Don't say that dude letter in the mailbox in 3 2....
Johnny Dimon says interest rates are going to sit at 8% for awhile
Between insurance costs interest rates taxes and over priced shit holes something has to give
Sent from my SM-A546V using Tapatalk
More and more loan defaults? Or millions and millions unable to pay off credit card debt and going bankrupt?Quote:
Originally Posted by fastfred
Or FTHB's simply not able to buy due wages never keeping pace with the price of RE.
sadly, this seems the likely resultQuote:
Originally Posted by liv2ski
Yeah well. If we can get our mortgage paid off in the next couple years I wouldn't be averse to self insuring. I don't think our house is worth much compared to our lot anyway.Quote:
Originally Posted by liv2ski
Might be different where you are but in many parts of the west debris removal will cost you $100-$200k to scrape all the contaminated soil from the house fire off your lot. If you’re going to self insure you should have enough money to build / rebuild, at least that’s what they teach Risk Managers.Quote:
Originally Posted by yeahman
Makes sense given your current insurer is Lemonade. Every underwriter looked at what they were writing and said, huh?Quote:
Originally Posted by 4matic
Right. Lemonade is weak financially. Probably couldn’t get re-insurance for California. They threatened to have car insurance for years and can’t get it done.
I saved $1k a year over next lowest quote before so I’m still at least break even for a few years. If we go without catastrophic fires for a few years maybe insurers go back to growth mode and compete for business. Fair plan will have more than a million insured soon enough. It’s big risk but that’s over $5b in revenue.
Yeah. Do they teach risk managers that insurance is a fucking scam from birth to death? Know how I know? Look at all the fucking commercials they run.Quote:
Originally Posted by neufox47
It's a scam until your house burns down.Quote:
Originally Posted by yeahman
Sure, they feed on irrational fear. What percentage of people does that happen to? Think of all the money wasted.Quote:
Originally Posted by skaredshtles
And even if your house does burn down they're going to try to figure out a way to fuck you.
It's a very, very tiny percentage. But if it happens to be you, ¯\_(?)_/¯Quote:
Originally Posted by yeahman
It's an unfortunate necessity, IMO, for things like houses. For most people.
That’s what lawyers are forQuote:
Originally Posted by yeahman
You just love paying for all kinds of shit huh