X. Benedict Posted March 27, 2006 Share Posted March 27, 2006 1200 sf house they bought for $500K 18 months ago could now sell for $420K. But no worries, you won that bidding war, and as an agent i am proud of the fact i got PAID, and WE WON!!!!! 643200[/snapback] 500K for 1200sq.ft.? Wow. over $416 a sq. ft. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 27, 2006 Share Posted March 27, 2006 Ok, so I realize I've now hijacked this thread into my own personal crusade against real estate agents, but the bottom line is that the industry SUCKS. I have worked in the industry from both the sales side and the legal side, and I was appalled at the level of incompetence on the sales side. That's why when I see the ReMax and Century 21 ads, and the "look at our code of ethics" ads for Realtors, my stomach turns. I obviously expect more from these people than some of you do. I believe that in large part they are self-interested hacks whose only goal is securing their commission check. That mentality is acceptable if you're selling shoes or a set of pots and pans; when you're "coaxing" someone into a colossal investment the standards should be much higher. I'm sorry. 641670[/snapback] Yes, the industry sucks. And yes, apparently you expect more from these people. Which is where we differ - I expect them to be who they are: professional salesmen, not tax advisors or loan officers. Hell, I just had an hour's long conversation with our loan officer and financial advisor. I wouldn't think of talking to our agent about these things...because our agent's just an agent. Why would I give a sh-- what he thinks about a 5-1 interest only ARM versus a 30-yr fixed plus a point? Why would I even ask? That's what the loan officer's for. Yes, you expect more...but maybe your expectations are unrealisticly high? Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 27, 2006 Share Posted March 27, 2006 500K for 1200sq.ft.? Wow. over $416 a sq. ft. 643239[/snapback] Not abnormal. I know a 1400-sq ft., 2-br, 1-bath condo in downtown DC (10th and I, roughly) that's yours for a measley $689,000. Good news is they can't move it at that price; bad news is that eighteen months ago they could have got a cool million. Hell, we just put a bid on a house in MD. Beautiful house, slightly underpriced in the neighborhood. 2000 square feet. $475k, with an escalation clause to $490k. We stand a good chance, as the owner likes us a lot and would sell to us at $490k over someone else at $500k...but I could see someone offering $525k easily for this house. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2006 Share Posted March 27, 2006 Im with eball on this argument. My neighbor just got royally screwed by a realtor , evn though I am a firm believer in caveat emptor(is that even close). Many people believe that a realtor is a professional and as such should have their clienys best interest at heart. I believe, however, 90% have only their own best interest at heart. In Richmond, where their is still somewhat of a bull market in higher end housing(due to several factors)but nowhere near the franzy that once was,people are still getting goading into making ridiculous and not well thought offers cause of their agents insistance the house will be gone in a friigen hour if ya don't make the biggest investment of your life after a 20 minute glance at the house, and the owner will evn through in floor mats if you act now!!!!!!Some of this gargabe is coming ho,e to roost in places like DC right now, where housing inventory is up 400% over last year levels. All the people who paid outrageous amounts for houses based on the greater fool theory esposed by thier real estate agents and bought to much house with interest only or ARMs are not seeing that not only are the payments getting way out in front of them, the 1200 sf house they bought for $500K 18 months ago could now sell for $420K. But no worries, you won that bidding war, and as an agent i am proud of the fact i got PAID, and WE WON!!!!! 643200[/snapback] No personal responsibility in this?? You don't say how the realtor screwed your friend. How did you friend come accross the agent? Were they running the open house? Yellow pages? How about do some research and get a referral to a good realtor. It's a very competative business with lots of loose canons out there. That alone should force people to do some research. And if you lose the bidding, so what. I think you should always underbid never overbid. Even you said the inventory has gone up 400% in your area. Economics 101....supply and demand. If inventory is up, prices should begin to level if not drop. Link to comment Share on other sites More sharing options...
X. Benedict Posted March 27, 2006 Share Posted March 27, 2006 Not abnormal. I know a 1400-sq ft., 2-br, 1-bath condo in downtown DC (10th and I, roughly) that's yours for a measley $689,000. Good news is they can't move it at that price; bad news is that eighteen months ago they could have got a cool million. Hell, we just put a bid on a house in MD. Beautiful house, slightly underpriced in the neighborhood. 2000 square feet. $475k, with an escalation clause to $490k. We stand a good chance, as the owner likes us a lot and would sell to us at $490k over someone else at $500k...but I could see someone offering $525k easily for this house. 643317[/snapback] Damn. WNY is a third world economy compared to this stuff. Link to comment Share on other sites More sharing options...
plenzmd1 Posted March 27, 2006 Share Posted March 27, 2006 No personal responsibility in this?? You don't say how the realtor screwed your friend. How did you friend come accross the agent? Were they running the open house? Yellow pages? How about do some research and get a referral to a good realtor. It's a very competative business with lots of loose canons out there. That alone should force people to do some research. And if you lose the bidding, so what. I think you should always underbid never overbid. Even you said the inventory has gone up 400% in your area. Economics 101....supply and demand. If inventory is up, prices should begin to level if not drop. 643360[/snapback] het Chef, thought the story be too long and boring. Bit, the short of it. Neighbor out of work close to a year, eats up lots of savings in the process. Has lots of equity in the house, so wants to get it out by buying cheaper house. Talks to neighbor directly behind us who is considerd one of the better realtors in the West End of Richmond. Long story short she gets them to bid up one her existing listings with the absolute proviso they will be able to get X for their house. Only problem, house two doors down, almost 1000 sq feet larger, just sold for X. And lo and behold, their house sits after 7 weeks and she is now telling them must drop their price by over 60K to even generate INTEREST, let alone an offer. But they stuck now. But guess what, she got both sides of the first sale with a guaranteed listing to boot. Now, I'm not saying she knows with absolute certainty what the house would sell for, as i realize that pricing houses is as much an art as a science, but dam these folks are fugged now. Coming down $60 K, when you add in commisions, closing, moving expenses etc, means these folks are not getting what they bargaiined for, and are now desperately trying to get out of the first contract. What ya know, she says no can do.I say get in contact with he other 5 people who made bids on the house, and see if they want to be assisnged the contract. She refused to provide the names of the other bidders, saying this was agaisn't professional ethics, but she had no problem telling them waht the other bids were when the bidding war started(shopping offers, very much agaisn't professional ethics) Only problem if that happens, she doesn't get both sides of the commish, and will lose her listing on their house. Thank goodness,looks like someone is going to take the contract with some financial incentives, and my dog willl be sent to piss on her lawn every morning. In terms of personal responcibility, as i said in my original post, buyer beware. However, I think lots of people look to these folks as professionals, when , as someone mentioned, they are nothing but glorified salespeople Link to comment Share on other sites More sharing options...
stuckincincy Posted March 27, 2006 Share Posted March 27, 2006 Most if not all states have real estate commissions that establish some level of expertise for those involved. I recommend investigating that, and the text(s) needed for licensing. Buy that book. Learn about joint & several ownership, land contracts, mortgage insurance, covenants, claims, title, etc. Fact is, many if not most folks that buy residential property show up at closings with no more knowledge than a toothpick. No pun, but property purchasing is the time to do your own "homework". A realtor is a chap who gets paid for locating a property to your specification, and aiding a seller in finding a buyer. You need not use them. But why denigrate them? Take their advice for what it is...a level of expertise, or sometimes avarice, and don't feel used if others don't wipe one's fanny or clean up one's errors...getting a straight deal is ones own responsibility. Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2006 Share Posted March 27, 2006 they are nothing but glorified salespeople 643405[/snapback] Not sure what that means, but my question is do you do research before you buy a $20,000 car? I assume so. So do some research before buying a $500k house. So if you take the word of a realtor that your house is worth the same as a house 1,000 square feet larger and bid accordingly, you need to ask some questions. Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 27, 2006 Share Posted March 27, 2006 Not sure what that means, but my question is do you do research before you buy a $20,000 car? I assume so. So do some research before buying a $500k house. So if you take the word of a realtor that your house is worth the same as a house 1,000 square feet larger and bid accordingly, you need to ask some questions. 643587[/snapback] Why would anyone hire a person who will earn five figures off the transaction without interviewing the person and getting some references and really doing some due diligence on the realtor's capability? If you don't do the homework when you pick a realtor, you should not B word when they screw you over. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 27, 2006 Share Posted March 27, 2006 Damn. WNY is a third world economy compared to this stuff. 643404[/snapback] And we got it at list price this afternoon. Me and the wife are now proud owners of a postwar 4br, 2 bath house with a finished outdoor workshop. Now we just need to come up with the closing costs. You don't even want to KNOW what those run. They're more than this house originally cost... Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2006 Share Posted March 27, 2006 Me and the wife are now proud owners of a postwar 4br, 2 bath house with a finished outdoor workshop. 643619[/snapback] Congrats! Postwar huh? There are NO postwar houses here in SoCal. You WERE talking about the first Gulf War right? Link to comment Share on other sites More sharing options...
taterhill Posted March 27, 2006 Share Posted March 27, 2006 And we got it at list price this afternoon. Me and the wife are now proud owners of a postwar 4br, 2 bath house with a finished outdoor workshop. Now we just need to come up with the closing costs. You don't even want to KNOW what those run. They're more than this house originally cost... 643619[/snapback] when I can I come over? Link to comment Share on other sites More sharing options...
X. Benedict Posted March 27, 2006 Share Posted March 27, 2006 And we got it at list price this afternoon. Me and the wife are now proud owners of a postwar 4br, 2 bath house with a finished outdoor workshop. Now we just need to come up with the closing costs. You don't even want to KNOW what those run. They're more than this house originally cost... 643619[/snapback] The closing costs alone would probably get you 1200 sq. ft. around here and Congratulations Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 27, 2006 Share Posted March 27, 2006 And we got it at list price this afternoon. Me and the wife are now proud owners of a postwar 4br, 2 bath house with a finished outdoor workshop. Now we just need to come up with the closing costs. You don't even want to KNOW what those run. They're more than this house originally cost... 643619[/snapback] Hey, congratulations. Don't worry about the closing costs. You can always find money. Why do I have the sneaking suspicion that the outdoor workshop is what did it for you... Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted March 27, 2006 Share Posted March 27, 2006 Congrats! Postwar huh? There are NO postwar houses here in SoCal. You WERE talking about the first Gulf War right? 643629[/snapback] '50s housing boom. The guy's the original owner. It's actually kind of intimidating; here he raised a family, sent them off into the world to raise their families, and just buried his one-and-only wife last October (hell, this day and age, it's intimidating this guy was married just once.) It's very much like he's leaving all those memories in our hands for safe keeping. (Side note: no one tell meazza I feel this way. I have a rep to maintain.) Even aside from that...beautiful house. Solid '50s construction with a few well-constructed additions (you wouldn't even know they're additions from looking; they're very well constructed and architecturally blended). This guy did most of the interior himself, and did beautiful work. Good neighborhood full of "greatest generation" people (met the guy down the street; he won about six medals in the Ardennes in WWII; four years ago some historian doing research at National Archives found his recommendation for a CMH, so now he's in line for that.) Very nice house... But geez, the closing costs...would be easier if my dear, sweet, misguided wife hadn't raised the number of deductions on her paycheck to 12 (!!!) last year. In three weeks, I'm supposed to cut Uncle Sam a check for thirteen thousand dollars. LA: actually, what did it was the "family room" addition which is just about the perfect size for my library/office (200 square feet of open wall space - about 16 more than I need for my books.) Link to comment Share on other sites More sharing options...
Chef Jim Posted March 27, 2006 Share Posted March 27, 2006 '50s housing boom. The guy's the original owner. It's actually kind of intimidating; here he raised a family, sent them off into the world to raise their families, and just buried his one-and-only wife last October (hell, this day and age, it's intimidating this guy was married just once.) It's very much like he's leaving all those memories in our hands for safe keeping. (Side note: no one tell meazza I feel this way. I have a rep to maintain.) Even aside from that...beautiful house. Solid '50s construction with a few well-constructed additions (you wouldn't even know they're additions from looking; they're very well constructed and architecturally blended). This guy did most of the interior himself, and did beautiful work. Good neighborhood full of "greatest generation" people (met the guy down the street; he won about six medals in the Ardennes in WWII; four years ago some historian doing research at National Archives found his recommendation for a CMH, so now he's in line for that.) Very nice house... But geez, the closing costs...would be easier if my dear, sweet, misguided wife hadn't raised the number of deductions on her paycheck to 12 (!!!) last year. In three weeks, I'm supposed to cut Uncle Sam a check for thirteen thousand dollars. LA: actually, what did it was the "family room" addition which is just about the perfect size for my library/office (200 square feet of open wall space - about 16 more than I need for my books.) 643680[/snapback] I love those old houses. There are some very solid craftsman homes here that they just don't make anymore. Our home was built about 7 years ago. I'm afraid to sneeze too hard sometimes. The first rumblings of the next big one and I'm out the window. Great family story too regarding the house. The house I grew up in was purchased by my grandfather in the 30's. My brother just bought it so it theoretically stay in the family for 100 years. Some very cool stories about that house. BTW I hope you got those exemptions on your wife's check got changed. Twelve!!! Someone needs to tell her the cats don't count. Link to comment Share on other sites More sharing options...
eball Posted March 27, 2006 Share Posted March 27, 2006 Not sure what that means, but my question is do you do research before you buy a $20,000 car? I assume so. So do some research before buying a $500k house. So if you take the word of a realtor that your house is worth the same as a house 1,000 square feet larger and bid accordingly, you need to ask some questions. 643587[/snapback] Bad example, Chef. The car salesman doesn't belong to an "association" that purports to adhere to the highest standards of ethical behavior...and more importantly, the car salesman doesn't purport to act in the BUYER'S best interests. Realtors do both, but the "two-way" transactions rife with conflicts of interest described by Paul happen routinely. I will always agree that a person should do as much research as possible when making any large purchasing decision, but if you have to do all the work, what is the need for the Realtor? Shouldn't you be justified in relying upon the supposed expertise of a "professional" you have hired? Link to comment Share on other sites More sharing options...
stuckincincy Posted March 27, 2006 Share Posted March 27, 2006 Solid '50s construction 643680[/snapback] Until that solid '50's underground sewage piping starts to show it's dark, arteriosclerosis side... Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 27, 2006 Share Posted March 27, 2006 But geez, the closing costs...would be easier if my dear, sweet, misguided wife hadn't raised the number of deductions on her paycheck to 12 (!!!) last year. In three weeks, I'm supposed to cut Uncle Sam a check for thirteen thousand dollars. 643680[/snapback] You should be able to write off all those dependents because if I remember correctly, you have three or four cats, and each cat has nine lives....so unless you've killed them each a few times over, you should be able to increase that deduction. Incidentally, the house I just bought is 30 years old and was sold to us by the original owner. The woman divorced her husband, who left the house to her. Her outstanding mortgage on the house was $80K. Suffice it to say we payed more than 10x that amount. At first we gave thought to the history of the house...the children they raised on this street, their friends, their neighbors...but all you could hear at the close of escrow was the woman laughing her way to Phoenix with a check in one hand and a Benson & Hedges 100 Menthol in the other. She left so fast she didn't take the time to forward her mail. No schitt. I initially sent them back to the post office, but now I just throw them away. Money trumps history every time. Link to comment Share on other sites More sharing options...
IDBillzFan Posted March 27, 2006 Share Posted March 27, 2006 I will always agree that a person should do as much research as possible when making any large purchasing decision, but if you have to do all the work, what is the need for the Realtor? Shouldn't you be justified in relying upon the supposed expertise of a "professional" you have hired? 643690[/snapback] I have to believe you've never bought a house. If I'm wrong, then I apologize and am quite frankly a bit more than a little surprised. Buy a house. Let us know how simple it is to make the offer. Then the counter offer. Then the counter to their counter. Then the forms when you agree to a price, and the contingencies. Then the escrow docs. Then the closing docs. And then all the docs required for selling your house before you buy the new one. The offer on your house and the counteroffer to the buyers, etc., etc., etc. I have a pile of paperwork from my last sale and purchase that stands eight inches tall. Link to comment Share on other sites More sharing options...
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