Real Estate Crash thread

[Toadman]

FWIW, this also is unethical and it's potentially illegal for that broker to do this. While I'm happy for your result, that agent did a big disservice to their seller by not exposing the property to the greater marketplace. This is the kind of thing that gives us a bad name.

I wonder how often this goes on. Our realtor, who is basically a family friend, said this does go on and it seems like any other industry, once a realtor does this, everyone in the market ends up hearing about it at some point. Doesn't seem to be a long term successful strategy.

[4matic]

I’m pending at $4k over ask with a 1% total commission. At 5% total commission the offer would need to be $32k higher to beak even. If you are selling a house with no oddities I can’t see many reasons to pay more than 1% to list. Even that seems high for a normal listing. You do need a broker to keep it from being FSBO because that has a bad vibe to it.

[4matic]

With regard to dual agency. Do I need an agent to buy a $200k car? An RV? An airplane? Why is real estate unique in that respect?

[schuss]

I wonder how often this goes on. Our realtor, who is basically a family friend, said this does go on and it seems like any other industry, once a realtor does this, everyone in the market ends up hearing about it at some point. Doesn't seem to be a long term successful strategy.

Realtors are ultimately paid for getting people properties they want. This means at the individual level, you WANT to be the person people go to for this since as a seller I know I only have to deal with one showing with a quick process while as a buyer I want to be in the "special" pool. It also protects your market.
I know at least 2-3 TGR folks personally that have benefited from a pocket listing as well. This will never go away unless MLS is mandated along with a 7 day+ list and open bid process. That will never happen.

[dunfree]

With regard to dual agency. Do I need an agent to buy a $200k car? An RV? An airplane? Why is real estate unique in that respect?

because real estate title & encumbrances isn’t as straightforward? I mean, you’ve given an example of that right in this thread, but you’ve got to talk yourself, so liveblog away.

[4matic]

because real estate title & encumbrances isn’t as straightforward? I mean, you’ve given an example of that right in this thread, but you’ve got to talk yourself, so liveblog away.

Whatever. We had a realtor say it should be illegal so I want to know why.

Title company handles the issues you mention. Not the salesman.

[Conundrum]

because real estate title & encumbrances isn’t as straightforward? I mean, you’ve given an example of that right in this thread, but you’ve got to talk yourself, so liveblog away.

If the realtor handles such encumbrances, why does the buyer also pay a title company fee and title insurance?

[dunfree]

Title company handles the issues you mention. Not the salesman.

Good salesman won’t waste your time selling you shit & will save you time & money.

you are sounding like a bargain basement Benny here mr big shot.

[4matic]

Good salesman won’t waste your time selling you shit & will save you time & money..

Lol..

You just don’t like success and wallow in misery.

[dunfree]

You just don’t like success and wallow in misery.

I do like watching successes like you that need to crow about it, yes.

[dunfree]

If the realtor handles such encumbrances, why does the buyer also pay a title company fee and title insurance?

If you are paying cash are you required to purchase insurance?

[oftpiste]

Pocket listings always benefit the buyer and the broker (big time). In most markets it is unethical at best, expressly against the rules and possibly the law. As a seller it is rarely, if ever, in your best interest to sell that way. Only showing once etc. is certainly handy if it works out, but you have no idea what you might be leaving on the table.

There are of course markets where the is not the case, but anywhere there's any reasonable level of activity you'd be shooting yourself in the foot to sell that way.

Realtors are ultimately paid for getting people properties they want. This means at the individual level, you WANT to be the person people go to for this since as a seller I know I only have to deal with one showing with a quick process while as a buyer I want to be in the "special" pool. It also protects your market.
I know at least 2-3 TGR folks personally that have benefited from a pocket listing as well. This will never go away unless MLS is mandated along with a 7 day+ list and open bid process. That will never happen.

[oftpiste]

It's quite prevalent in small markets where everyone knows each other and plays the same game. In an urban setting you really can't get away with it.

I wonder how often this goes on. Our realtor, who is basically a family friend, said this does go on and it seems like any other industry, once a realtor does this, everyone in the market ends up hearing about it at some point. Doesn't seem to be a long term successful strategy.

[Conundrum]

4matic asked why real estate is unique in needing an agent. You said

because real estate title & encumbrances isn’t as straightforward?

I don't know if you need to pay title insurance in a cash purchase. I don't know the answer. But to 4matics point, if I buy a car without a representing agent, I still pay title fees to the DMV to do the work. If I buy a house, I still pay title fees for recording to a title agency. I'm not commenting on needing a real estate agent as a buyer. I don't have much experience. I've purchased one house in my life, used an agent, and was happy with the work he did. I've never sold.

What I'm getting at is you saying you hire a realtor as a buyer to deal with real estate titles doesn't make sense to me if you are debating the need of an agent for houses vs cars. Usually I appreciate your smug responses because you make valid points. I don't see this one being valid.

[MarcusBrody]

I don't think the seller got disadvantaged in our case. They basically got what they had accepted from the first buyer that fell through and our offer had less contingencies than the other that was made at the same time in its second round of being on the open market. I think we mainly benefited from the extra information which we were given. They had to ask the seller to release it, but I got the feeling that the agency was happy to facilitate it to keep it in the family.

We definitely benefited from an agent in our case. There is no way we could have bought a house remotely unrepresented, at least no way which we would have attempted to undertake.

[XXX-er]

I thot the lawyer did all that transfer/conveyance shit at least they do up here and/but the verbage all seems different

if its nobodies job and the deal goes sideways, nobody gets paid and maybe somebody gets sued

[Danno]

cool, are we going to discuss/argue for the 837th time whether realtors are necessary, worth it, etc? I am sure we're going to get to the bottom of that issue this time around!

[Timberridge]

If the deal goes clean or you're in a hot market then a standard realtor commission is a rip off, when it goes sideways or you're in an ice cold market, it's a bargain. When it comes down negotiating the last 5% of the purchase price with the buyer, the $500 to the realtor is worth way less than $10K to you so I'm always a bit suspicious of the realtor's motives at that point.

I was selling a house in 2009 where buyer had 20% down and a commitment letter from an online lender and lender pulled it 3 weeks before the close. So my realtor lines up several local banks for the buyer and they start the application process all over again. I had to sit on the house for an additional 2 months but the deal got saved.

I just sold the Branch Covidian compound. There was some drama because it's VT, but the commission I paid was significant for the amount of work the realtor did.

Win some, lose some.

[XXX-er]

cool, are we going to discuss/argue for the 837th time whether realtors are necessary, worth it, etc? I am sure we're going to get to the bottom of that issue this time around!

if there was no reason to have an RE agent how/why do they continue to exist, wouldn't they all fade away and get real jobs ?

My buddy the lawyer told me " there are 300 RE agents in this town and there are a handful i trust to deal a deal correctly "

[liv2ski]

After doing home loans for 37 years I tried to break into the RE business in my hood in 2019. I spent a fuck ton on advertising a better deal than Redfins 1% listing fee and got 0 takers. People with money don't mind paying a shit ton for realtor commissions it seems.

[muted]

if there was no reason to have an RE agent how/why do they continue to exist, wouldn't they all fade away and get real jobs ?

My buddy the lawyer told me " there are 300 RE agents in this town and there are a handful i trust to deal a deal correctly "

too many ski bums being bum agents

[Toadman]

Latest RE market summary.

Key takeaways for the week ending July 5
Home sales were up 2% from pre-pandemic levels and are likely to continue rising; pending sales were up 10% during the same period.
Weekly average mortgage rates fell to a new low of 3.03%, fueling homebuyer demand.
New listings recovered to pre-pandemic levels for the third straight week, but can’t keep pace with buyer demand; the number of homes for sale was down 29% from last year.
Nearly half of homes that sold during the week spent two weeks or less on the market, making the market feel “chaotic” for buyers.
Low rates and low inventory pushed home sale prices up 7% from a year earlier.

[schuss]

Yep, anything 300k or under in our area that doesn't suck out loud is getting bought day of.

[Benny Profane]

Latest RE market summary.

Key takeaways for the week ending July 5
Home sales were up 2% from pre-pandemic levels and are likely to continue rising; pending sales were up 10% during the same period.
Weekly average mortgage rates fell to a new low of 3.03%, fueling homebuyer demand.
New listings recovered to pre-pandemic levels for the third straight week, but can’t keep pace with buyer demand; the number of homes for sale was down 29% from last year.
Nearly half of homes that sold during the week spent two weeks or less on the market, making the market feel “chaotic” for buyers.
Low rates and low inventory pushed home sale prices up 7% from a year earlier.

I don't know. Just read that fully one third of Americans have missed rent and mortgage payments. There is a huge disconnect going on. Unless the economy goes back into at least fourth gear very soon, there's going to be a ton of living spaces sitting empty.

[Mazderati]

Missed or deferred? Sounds like some people who could afford their mortgage were deferring as a precaution given the option.