Realtor fees ?

[zhandfull]

View attachment 1503963 View attachment 1503964

Yeah I’m going to have my attorney review before signing.

Looks like buyer can potentially be on the hook for commission even if escrow doesn’t close.

 

[RiverDave]

Yeah I’m going to have my attorney review before signing.

Literally all the forms for RE look like that. They can be intimidating up front but they are for the most part standard and if you use them everyday they aren’t intimidating..

RD

 

[RiverDave]

Bit of irony I have been home sick the last two days.. I finally caught whatever Stacy and Sierra had.

I’m in bed though and I can hear Stacy on the couch say something to the effect of “but that isn’t what it says.. your buyer didn’t say he was gonna drain it and see if that fixes it. He signed a contract that said he was gonna fix it.” That conversation rolled into a ton of other stuff that as joe blow citizen would have probably said “I’ll just fix it honey I don’t want to lose the house”.

Sometimes ya rake em over the coals and sometimes if mistakes are made ya get raked.. but at no time does the client deal with that shit.

I have my famous roof / septic incident that happened where by when an agent (that no longer works for me) was being a lazy ass and copied and pasted basically the same description of a property he was selling because it had been sold to his client recently.

In that description it said newer roof and new septic. Come to find out the septic was like 35-40 years old.

Their buyers agent caught it.. the guy that worked for me was just sitting there in dead silence.. we can’t let our seller get burned on the deal so the executive decision was made that team rdp is buying an all new septic system. It’s a bit of a story how it all worked out but that buyer is now a friend of mine and a big fan of TRDP..

We try to not make any mistakes and honestly we don’t make too many because usually things are triple checked. However if we do we own em 100%.

What I’m saying though is there is a ton of shit that goes on behind the scenes and a ton of subtleties that happen that a person off the street isn’t gonna know or know how to deal with.

People are flippin crazy sometimes.. they get hung up on stuff emotionally.. or get mad at the other party. The representatives just work to make for their parties interests and take that dynamic out of it.

Ask any realtor on here how many times they have seen owners or buyers try to explode a 1-2 million dollar deal over 3-500 bucks.. it happens a lot more than you’d think.

RD

 

[DWRAT]

I have no problem with the commission part of the contract but I do have a BIG problem with trying to lock someone in to a 30 day "you have to use me even if I am a POS realtor" contract.

That said, RD already said to just do a 1 day contract.

Pretty simple, problem solved now.

In the past I wouldn't even want to sign a 1 day contract but things have changed.

 

[RiverDave]

I have no problem with the commission part of the contract but I do have a BIG problem with trying to lock someone in to a 30 day "you have to use me even if I am a POS realtor" contract.

That said, RD already said to just do a 1 day contract.

Pretty simple, problem solved now.

In the past I wouldn't even want to sign a 1 day contract but things have changed.

What changed?

 

[Amy@Team RDP]

So the buyers agreement sets the commission rate and who pays it? How is this even known before negotiations with a seller take place?

Feels like one of those restaurants that charges a tip before they give you any service.

The NAR settlement has uncoupled the compensation. The Seller signs the Listing Agreement agreeing to only pay the Listing agent. The Buyer signs the Buyer Broker Agreement agreeing to pay their Buyer's Agent. Here's the caveat - in the both of these agreements is language that state the Seller may potentially compensate a prospective Buyer Broker depending on the terms of the purchase contract. So what has really changed? Just the paperwork trail on how to pay for the Buyer's Agent. We now use a new addendum called the Seller Compensation Agreement to negotiate the Buyer Broker compensation in tandem with the Purchase Offer. 99% of the time the Seller is still agreeing to pay the Buyer Broker fee, however it is now negotiable and not set in stone until all terms of the offer are accepted.

There is no compensation due to the Buyer Broker unless a transaction is completed and you have closed escrow. Don't worry you won't tip until after your service is complete.

 

[DWRAT]

What changed?

The new rules changed, I guess.
So I will also have to changed my willingness to sign anything.

That said, I find it kinda funny you say "Never sign anything at an open house".

 

[RiverDave]

The new rules changed, I guess.
So I will also have to changed my willingness to sign anything.

That said, I find it kinda funny you say "Never sign anything at an open house".

You should interview agents and determine which groups or individuals you want to work with and why. When you find that person(s) let them do their job that you have entrusted them to do.

You sign something at an open house and you are signing that ability away to someone whose interests are in someone else’s favor already.

If we are being 100% honest you sound like a guy that no matter what service is provided you aren’t going to be happy or want to pay someone for the service.

After all the time I have spent today trying even to lay out the basic form of what it now takes to even go look at property the first thing you asked was would someone do it without that, and your next response was to sign something arbitrarily for 1 day.

Why 1 day vs 2? Or a week? Or a specific property. The answer is because you felt it was the barest minimum you could get away with.

I’m not going to have my employees jump through hoops only to be ridiculed later by some guy, not because they didn’t do their jobs, but rather because that guy is looking for an angle, any angle to not pay..

A quick search of your posts and you feel the same about electricians and plumbers.

I wish you the best of luck in your home searches.

RD

 

[NicPaus]

Amy has got a lot of referrals from other inmates. So I don't think you would be disappointed signing a 30 day agreement. One day is not much time to get you a good list and viewings of potential properties.

I got a list today of potential Havasu houses from another local realtor. So not favoring any 1 realtor. Just giving my opinion that 30 days is not a long agreement. 90-180 days not happening unless it's a regular realtor I deal with.

 

[RiverDave]

Amy has got a lot of referrals from other inmates. So I don't think you would be disappointed signing a 30 day agreement. One day is not much time to get you a good list and viewings of potential properties.

I got a list today of potential Havasu houses from another local realtor. So not favoring any 1 realtor. Just giving my opinion that 30 days is not a long agreement. 90-180 days not happening unless it's a regular realtor I deal with.

It wouldn’t matter I wouldn’t take him as a client at this point. It sounds like a disaster in the works and I don’t want my name tied to that.

 

[CLdrinker]

Dave I appreciate your direct insight on this. I’m paying attention so I do a better job choosing my next realtor. Paying them sucks but if I pay $25,000 and they save me $25,000 I’m happy to do it.

 

[DWRAT]

You should interview agents and determine which groups or individuals you want to work with and why. When you find that person(s) let them do their job that you have entrusted them to do.



If we are being 100% honest you sound like a guy that no matter what service is provided you aren’t going to be happy or want to pay someone for the service.

If I was local I could interview a few realtor but I am not. The last realtor I worked with was always to busy to show more then 4 houses so I had to travel 4 hours to see 4 houses max.

Thanks for the insult, I'm not even the person paying the fee so not sure where that came from.

 

[DWRAT]

It wouldn’t matter I wouldn’t take him as a client at this point. It sounds like a fucking disaster in the works and I don’t want my name tied to that.

Sorry I clearly offended you when I pointed out you stated to never sign anything at an open house but it's okay for me to sign a broker agreement with someone I haven't even met.

 

[RiverDave]

Sorry I clearly offended you when I pointed out you stated to never sign anything at an open house but it's okay for me to sign a broker agreement with someone I haven't even met.

You haven’t offended me.. I was just saying I have been around the block enough times to know where this ends..

And it isn’t for me.

Please heed the advice written above. Interview several agents and then pick the one you are most comfortable with.

If you aren’t local I suggest zoom as a decent tool for listing and buying presentations.

RD

 

[DWRAT]

You haven’t offended me.. I was just saying I have been around the block enough times to know where this ends..

And it isn’t for me.

Please heed the advice written above. Interview several agents and then pick the one you are most comfortable with.

If you aren’t local I suggest zoom as a decent tool for listing and buying presentations.

RD

Will do, thanks.

 

[Amy@Team RDP]

Pro tip - In Arizona we have two different Buyer Broker Agreements.
One that looks kind of scary like the CA version that already posted. It is 3 pages of terms. We humorously refer to it as the "getting married contract."
The other is below and is a single page that is much more simple and easy to understand. We call this the "dating contract."

Ask for this simple Buyer-Broker Agreement to Show Property.
Ask for a term that you are comfortable with. 1 day, 1 week, 1 month
You may even pair this agreement down to one single property. Check mark "Other" and put one property address in.

We don't want to get stuck with a bum buyer any more that you want to get stuck with "POS" Realtor. Let's "date" and get to know each other. I am that confident my clients will like me once we spend some time looking at properties together. I know I am worth my compensation and I will negotiate with the Seller and their agent to get my clients the best deal possible AND the Seller will pay my fee.

 

[zhandfull]

When I bought a place out of town almost two years ago. the signing was online, I actually liked it. I’m the guy that reads every line two and sometimes three times. It becomes a little uncomfortable in an office setting with people sitting across waiting on you.

I do like these threads and comment regularly. Full disclosure, my comments are backed with nothing other than my own experiences and opinions.

The buyer agreement - I understand it’s relatively new and now a standard transaction form. Will probably be signing one on my next purchase I imagine. With that said. I read it and don’t see one thing in that entire form that would protect me as the buyer. Hell of a way to start a business relationship with a one sided form.

 

[RiverDave]

When I bought a place out of town almost two years ago. the signing was online, I actually liked it. I’m the guy that reads every line two and sometimes three times. It becomes a little uncomfortable in an office setting with people sitting across waiting on you.

I do like these threads and comment regularly. Full disclosure, my comments are backed with nothing other than my own experiences and opinions.

The buyer agreement - I understand it’s relatively new and now a standard transaction form. Will probably be signing one on my next purchase I imagine. With that said. I read it and don’t see one thing in that entire form that would protect me as the buyer. Hell of a way to start a business relationship with a one sided form.

Well thank the lawyers and NAR for that..

RD

 

[Amy@Team RDP]

When I bought a place out of town almost two years ago. the signing was online, I actually liked it. I’m the guy that reads every line two and sometimes three times. It becomes a little uncomfortable in an office setting with people sitting across waiting on you.

I do like these threads and comment regularly. Full disclosure, my comments are backed with nothing other than my own experiences and opinions.

The buyer agreement - I understand it’s relatively new and now a standard transaction form. Will probably be signing one on my next purchase I imagine. With that said. I read it and don’t see one thing in that entire form that would protect me as the buyer. Hell of a way to start a business relationship with a one sided form.

Yet NAR and the DOJ agreed this is the best way to protect the Buyers. We don't make the rules, but we have to be the messenger and explain them. It's a lot easier when it makes common sense but this can be a hard pill to swallow.

 

[RiverDave]

Dave I appreciate your direct insight on this. I’m paying attention so I do a better job choosing my next realtor. Paying them sucks but if I pay $25,000 and they save me $25,000 I’m happy to do it.

If you are paying them 25k. Then at a minimum they should provide double that in value to you. (Note value isn’t necessarily $$ off house)

RD

 

[dnewps]

Here is the deal…you see a listing…you can either call the listing agent and they will offer an agent to represent you or you can represent yourself. If you represent yourself, the listing agent is paid more for having to deal with you since you know they represent the seller (no trust agency).

OR you find a buyer’s agent that represents you exclusively. The commission agreement is made between you and your agent prior to entering the home. Better hire the best because there seems to be a market price of 2.5%. The uncle cousin bartender friend with a huge rack won’t be your agent because it doesn’t look free anymore. Ironically, the seller still pays. Either outright or in price.

 

[rivermobster]

Bit of irony I have been home sick the last two days.. I finally caught whatever Stacy and Sierra had.

I’m in bed though and I can hear Stacy on the couch say something to the effect of “but that isn’t what it says.. your buyer didn’t say he was gonna drain it and see if that fixes it. He signed a contract that said he was gonna fix it.” That conversation rolled into a ton of other stuff that as joe blow citizen would have probably said “I’ll just fix it honey I don’t want to lose the house”.

Sometimes ya rake em over the coals and sometimes if mistakes are made ya get raked.. but at no time does the client deal with that shit.

I have my famous roof / septic incident that happened where by when an agent (that no longer works for me) was being a lazy ass and copied and pasted basically the same description of a property he was selling because it had been sold to his client recently.

In that description it said newer roof and new septic. Come to find out the septic was like 35-40 years old.

Their buyers agent caught it.. the guy that worked for me was just sitting there in dead silence.. we can’t let our seller get burned on the deal so the executive decision was made that team rdp is buying an all new septic system. It’s a bit of a story how it all worked out but that buyer is now a friend of mine and a big fan of TRDP..

We try to not make any mistakes and honestly we don’t make too many because usually things are triple checked. However if we do we own em 100%.

What I’m saying though is there is a ton of shit that goes on behind the scenes and a ton of subtleties that happen that a person off the street isn’t gonna know or know how to deal with.

People are flippin crazy sometimes.. they get hung up on stuff emotionally.. or get mad at the other party. The representatives just work to make for their parties interests and take that dynamic out of it.

Ask any realtor on here how many times they have seen owners or buyers try to explode a 1-2 million dollar deal over 3-500 bucks.. it happens a lot more than you’d think.

RD

When I was buying my Glendora house, the inspector caught a few things that didn't work. The pool lights and the front yard lights.

Seller says: I'm not fixing that shit, it was that way when we bought the house!

I already knew they bought the house from the same RE office they now have it listed with, so I got estimates for the repairs and told My agent (who worked for the SAME RE office) to just get me a check for the repairs, and I'll be happy.

So he did. Was around 2500.00. It came directly from the RE office so I would STFU about it.

After escrow closes...

I fixed everything myself, for maybe 100.00.

Yeah, I'm a dick.

 

[EarpRider]

Interview Agents? Wow, that's crazy , their are soooo many resources this day and age to figure out what home appeals to you or not. Spend time and energy on that instead of Interviewing agents.
Maybe Interviewing your mortgage broker would make way more sense.

 

[RiverDave]

Interview Agents? Wow, that's crazy , their are soooo many resources this day and age to figure out what home appeals to you or not. Spend time and energy on that instead of Interviewing agents.
Maybe Interviewing your mortgage broker would make way more sense.

And I can YouTube, how to fix my car boat too, but I don’t.. lol.

RD.

 

[DWRAT]

When I was buying my Glendora house, the inspector caught a few things that didn't work. The pool lights and the front yard lights.

Seller says: I'm not fixing that shit, it was that way when we bought the house!

I already knew they bought the house from the same RE office they now have it listed with, so I got estimates for the repairs and told My agent (who worked for the SAME RE office) to just get me a check for the repairs, and I'll be happy.

So he did. Was around 2500.00. It came directly from the RE office so I would STFU about it.

After escrow closes...

I fixed everything myself, for maybe 100.00.

Yeah, I'm a dick.

No way, so you're saying an Electrican quoted you $2,500 to fix a couple lighting issues and then you fixed them yourself for $100.
Ya, that sounds about right from my experience also but I get called out for stating something like that.

 

[DMF]

No way, so you're saying an Electrican quoted you $2,500 to fix a couple lighting issues and then you fixed them yourself for $100.
Ya, that sounds about right from my experience also but I get called out for stating something like that.

What do you do for a living?

 

[DWRAT]

What do you do for a living?

Locksmith for over 20 years and never once charged over the standard hourly fee plus service call.
After hours was time and a half and service call stayed the same.
Are parts were 50% mark up.
I can honestly say I never hosed anyone.

 

[rivermobster]

No way, so you're saying an Electrican quoted you $2,500 to fix a couple lighting issues and then you fixed them yourself for $100.
Ya, that sounds about right from my experience also but I get called out for stating something like that.

I called myself out first.

 

[attitude]

And I can YouTube, how to fix my car boat too, but I don’t.. lol.

RD.

Baller!

 

[COCA COLA COWBOY]

Let's just cut to the chase....If you want out of any "residential" real estate agreement which was scripted by the association of realtors for each state with a buyer's agent or a listing agent you just need to send an email stating that you would like to cancel such.

Before the peanut galley crucifies me....please feel free to contact the department of real estate's attorneys for each state directly and ask the same question below. I have been through this for 25 years and in different times and different real estate forms and each time the attorneys state the same thing. The brokers can try to uphold the contract, but if litigated, the consumer will always win in court.

Now, on the flip side....If a "seller" enters into an agreement with a buyer and that seller wants to cancel that agreement, then the seller will have to pay fees which will be dictated by the court and include fees for the attorneys. You will also open up your property to a lis pendens and a life of hell until that case is closed.

As a seller, before accepting any offer on their property, they MUST know that once accepted they need to follow through with that transaction or be ready for a fight that will not be worth it.

 

[CLdrinker]

I have a question who is on first?

 

[rivermobster]

I have a question who is on first?

Why yes, yes he is.

 

[dnewps]

Let's just cut to the chase....If you want out of any "residential" real estate agreement which was scripted by the association of realtors for each state with a buyer's agent or a listing agent you just need to send an email stating that you would like to cancel such.

Before the peanut galley crucifies me....please feel free to contact the department of real estate's attorneys for each state directly and ask the same question below. I have been through this for 25 years and in different times and different real estate forms and each time the attorneys state the same thing. The brokers can try to uphold the contract, but if litigated, the consumer will always win in court.

Now, on the flip side....If a "seller" enters into an agreement with a buyer and that seller wants to cancel that agreement, then the seller will have to pay fees which will be dictated by the court and include fees for the attorneys. You will also open up your property to a lis pendens and a life of hell until that case is closed.

As a seller, before accepting any offer on their property, they MUST know that once accepted they need to follow through with that transaction or be ready for a fight that will not be worth it.

Nope, depends on the state. This is nanny state CA stuff where owners of anything are the enemy.

 

[COCA COLA COWBOY]

Nope, depends on the state. This is nanny state CA stuff where owners of anything are the enemy.

Historically, the law and judges side with the consumer because the brokers are considered experts. The contracts state differently, but the outcomes of cases have proven my statement correct. I am also on many groups with brokers thoughout the US and they all say the same thing.

Not many realtors/brokers will tell this to the public because they want them to feel locked in. If a real estate professional provides a lot of value, they don't care because they know that consumer won't find a better option.

 

[D19]

I'm from out of town so I will need a realtor to set up showing on a Saturday.
I also need a realtor who isn't afraid to offer a lower price then asking price. (that is actually an issue)
Any good recommendations for a solid realtor that wants to actually help me out and earn there commission?
I have dealt with many worthless realtors that always have excuses.,#1 excuse is "my kids".
Hopefully a realtor with no young kids.

No offense, but this approach is likely to lead to a lot of frustration.

Try looking at it from the perspective of a seasoned, successful real estate agent. Would you want to give up your Saturday morning—time that could be spent with family, on personal responsibilities, or with serious clients—to show homes to someone who intends to lowball every offer?

This kind of strategy is only going to attract inexperienced agents who may not have better prospects. And from the start, it signals to any competent agent that the client doesn’t really value their expertise or the commission they earn. That kind of dynamic makes it very difficult for the agent to do their job effectively—especially when it comes to offering guidance on what it takes to even get a seller to the negotiation table.

 

[RiverDave]

No offense, but this approach is likely to lead to a lot of frustration.

Try looking at it from the perspective of a seasoned, successful real estate agent. Would you want to give up your Saturday morning—time that could be spent with family, on personal responsibilities, or with serious clients—to show homes to someone who intends to lowball every offer?

This kind of strategy is only going to attract inexperienced agents who may not have better prospects. And from the start, it signals to any competent agent that the client doesn’t really value their expertise or the commission they earn. That kind of dynamic makes it very difficult for the agent to do their job effectively—especially when it comes to offering guidance on what it takes to even get a seller to the negotiation table.

Giving up the weekend isn’t a problem for us.. aggressive offers aren’t either..

If the client sees now value to the realtor (and has no idea if what actually transpires to get the deal done) than at the end it’s gonna be a tough situation no matter what.

Some deals go easy.. a lot of them don’t..

RD

 

[DWRAT]

No offense, but this approach is likely to lead to a lot of frustration.

Try looking at it from the perspective of a seasoned, successful real estate agent. Would you want to give up your Saturday morning—time that could be spent with family, on personal responsibilities, or with serious clients—to show homes to someone who intends to lowball every offer?

This kind of strategy is only going to attract inexperienced agents who may not have better prospects. And from the start, it signals to any competent agent that the client doesn’t really value their expertise or the commission they earn. That kind of dynamic makes it very difficult for the agent to do their job effectively—especially when it comes to offering guidance on what it takes to even get a seller to the negotiation table.

I hear what you are saying but it has worked for me many times, also not worked for me many times.
In today's market many houses are over priced and not selling.
Sellers want to get what there neighbors got the last 2-3 years.
Here's a very good example of what I am saying, look at the price history.

https://www.realtor.com/realestateandhomes-detail/3730-Kiowa-Blvd-S_Lake-Havasu-City_AZ_86404_M27385-40721

 

[zhandfull]

I hear what you are saying but it has worked for me many times, also not worked for me many times.
In today's market many houses are over priced and not selling.
Sellers want to get what there neighbors got the last 2-3 years.
Here's a very good example of what I am saying, look at the price history.

https://www.realtor.com/realestateandhomes-detail/3730-Kiowa-Blvd-S_Lake-Havasu-City_AZ_86404_M27385-40721

Looks like a motivated seller

 

[DWRAT]

Looks like a motivated seller

Very motivated seller.

 

[Amy@Team RDP]

I hear what you are saying but it has worked for me many times, also not worked for me many times.
In today's market many houses are over priced and not selling.
Sellers want to get what there neighbors got the last 2-3 years.
Here's a very good example of what I am saying, look at the price history.

https://www.realtor.com/realestateandhomes-detail/3730-Kiowa-Blvd-S_Lake-Havasu-City_AZ_86404_M27385-40721

Working on the weekends and negotiating deals is part of the job for me. You never know when the perfect house is going to pop up for your clients. I even wrote and got a contract accepted on Christmas last year. Seller have varying degrees of motivation and if you find one that is ready to move then you can get very favorable buyer terms. This one is a good one but Kiowa is a busier street.

 

[DC-88]

Very motivated seller.

20 plus year old build on a busy street with yellow lines in the middle of it is usually way harder to sell especially with how that place keeps growing.... Unless we are talking commercial property where lots of cars counted on the daily is definitely considered a good thing, yellow lines are a no go for me having owned a bunch of stuff there over the years. Not saying there isn't an ass for every saddle - jmo

 

[RiverDave]

20 plus year old build on a busy street with yellow lines in the middle of it is usually way harder to sell especially with how that place keeps growing.... Unless we are talking commercial property where lots of cars counted on the daily is definitely considered a good thing, yellow lines are a no go for me having owned a bunch of stuff there over the years. Not saying there isn't an ass for every saddle - jmo

Absolutely correct! If you see turn lanes or it’s a major artery of Havasu you are going to see serious price reduction compared to other streets.

I feel bad for the people that own on cherry tree now.. at least one of them has a sense of humor with the “freeway begin” sign at the edge of his property. lol

None of them signed up for that when they originally built and owned.

RD

 

[rivermobster]

Absolutely correct! If you see turn lanes or it’s a major artery of Havasu you are going to see serious price reduction compared to other streets.

I feel bad for the people that own on cherry tree now.. at least one of them has a sense of humor with the “freeway begin” sign at the edge of his property. lol

None of them signed up for that when they originally built and owned.

RD

Joel grew up in Lake Havasu City, and were were talking about this the other day.

He said he can remember driving around and not seeing another car.

Makes you wonder if Sir McCulloch Ever expected anything like it is today.

 

[DWRAT]

This is another sign of the times.
sold for $472K.
And this listing played the game of "we will look at all offers after 72 hours"
Didn't go as planned I guess.
3117-Maracaibo-Dr_Lake-Havasu-City_AZ_86404_M18895-48020

 

[DWRAT]

Absolutely correct! If you see turn lanes or it’s a major artery of Havasu you are going to see serious price reduction compared to other streets.

I feel bad for the people that own on cherry tree now.. at least one of them has a sense of humor with the “freeway begin” sign at the edge of his property. lol

None of them signed up for that when they originally built and owned.

RD

LOL, I seen that sigh and it is funny but also very true.

 

[PaPaG]

I hear what you are saying but it has worked for me many times, also not worked for me many times.
In today's market many houses are over priced and not selling.
Sellers want to get what there neighbors got the last 2-3 years.
Here's a very good example of what I am saying, look at the price history.

https://www.realtor.com/realestateandhomes-detail/3730-Kiowa-Blvd-S_Lake-Havasu-City_AZ_86404_M27385-40721

And that 70k is a second drop for a total of almost 170k drop in asking in 3 or so months.