All Forum Posts by: Chris Ayars

The job has to be permitted and inspected by the city/county inspector, so the short answer is "YES." 

The longer answer might be to talk to the permitting authority and find out from them how much would be grandfathered in - if any - and how much really has to be re-piped. Then go to a different plumber if you have to. It may require having the job pre-inspected to get that determination.

Unpermitted jobs will cause you problems when you try to sell the property because the appraisers look that stuff up. If you were to shortcut that process, it will only lead to problems down the road.

@Valerie Kinkead You need to use the current market value of the property to do your rental calculations. I can help you with evaluating the current property market value if you need a Virginia REALTOR's® input.

Hello @William R Bebout Jr I am about 3 hours east of you following Rt 460. Welcome.

Does your contract say that it is subject to appraisal? If so, you can either negotiate a lower price or walk away. If the seller makes the clause that a lower price will not be accepted if the appraisal comes in low, do not sign that!

@April Birdsong Both are concerns. I recommend talking to a plumbing contractor for one and a building contractor for then other. Make sure that the plumbing issue is taken care of and the attic issue has been secured and is not still compromised. You do not need issues down the road because they were neglected.

There is no such thing as a "standard fee," however each agent has a fee that they typically use based on how they want to get paid. This fee is always negotiable. If you and the agent cannot come to an agreement, then you do not sign their buyer's agreement. You find a different agent. Once you sign that agreement, you have a legal and binding document.

Some fees that are placed in addition to a percentage are to help reduce the agent's fees - especially if the expected commission will not provide the agent with an adequate paycheck after the broker's cut and other investments that the agent had to make in order to help the buyer purchase a home have been removed from the commission.

The challenge of the buyer is to make sure they have the funds to pay the agent. The seller CAN still offer to pay some or all of the buyer's commission fees or other closing costs, but it is not mandatory... that is the seller's choice.

I suggest doing a market analysis based on what the property WOULD BE worth when the project is completed. Then subtract the cost of the work to be done (build in a generous buffer). What is left is the maximum price you should pay for the property minus a reasonable profit and closing costs on both ends of the project.

@Account Closed You are talking about Price Fixing...

Check your facts. NAR has offered to settle. It still has to be approved by the court.

Real estate commissions have always been negotiable! There is no "set" or "standard" fee that is required by NAR or a MLS. A specific agent might have a fee that they traditionally charge, but they must be willing to negotiate... or you can just use a different agent that will.

However, you get what you pay for. If you pay them too little, they will not have the money to market your property effectively. Because, yes, they pay for that out of the proceeds of the commission.

The fee seems higher because, traditionally, "you are paying for the buyer's agent." You might want to consider that "extra money" an incentive for the buyer to purchase YOUR house as opposed to SOMEONE ELSE's house. 

Were you ever a home buyer? Did you have to pay your agent? If not, who did? Was it in your loan? - Not if you are a veteran who used a VA backed loan, because that is illegal! Do you want to keep a buyer who does not have the extra money to pay their agent out of pocket from buying your home?

Do you get to negotiate your doctor's fees? Your lawyer's? Your tax preparers? And how much do you pay them? Think about it! If you want to use a professional to buy or sell, you are responsible to pay a professional's fee. States like Virginia require agents to have a buyer's agreement that lays out their responsibility to pay the agent. If the seller is kind enough to offer an incentive such as paying part or all of the buyer's agent fees or other closing costs, the buyer is both blessed and relieved. 

Just because NAR is eliminating the requirement to cooperate by paying the buyer side agent costs does not mean that it is not a good idea to put the money out there or entertain negotiations that help a buyer purchase your property.

Reality check! Even the CEOs of FSBO websites have used real estate agents after failing to sell on their own and gained more from the sale - even after paying their REALTOR®. Look it up.

If you want to sell FSBO, you should not expect to get as much money for the property. Do you pay more for a used car from a private party or at a car lot?

Keep in mind, if you sell FSBO, you are responsible for every aspect and dollar spent trying to find a buyer. If you hire a REALTOR®, the responsibility is theirs including the marketing and promotion finances. They do not get paid until a successful transaction is completed.

The "6%" you are talking about usually gets split between your agent's broker and the broker whose agent brings you a buyer as an incentive for the buyer to purchase your property (because they owe a commission too and may not be able to afford your property if they have to pay it themselves). Everything is negotiable UNTIL you sign that legal document - even what and how you pay the person doing the work of marketing your property.

Consider cost vs. reward before you think, "I don't want to pay a commission." It may be worth paying that commission in the long run.