All Forum Posts by: Chris Ayars

@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.

Ask the inspector how they do their reports and see if they can provide you a sample. I do not like using inspectors that do not have pictures with arrows pointing to the trouble spots that go along with their text. (A picture is worth a thousand words.) This speaks to what @Russell Brazil said about being thorough and making sure you understand what needs to be done.

I certainly agree with what @Bill J Fay said about the before & after, but, if the property is bad enough, you might want a contractor for the first inspection. That way you know what you are getting into. An inspector does not specialize in every area, and will often recommend a contractor inspection for specific areas. You can hire an inspector for after the work was done to see what was missed by the contractor. That way you are less likely to have surprises. 

@Melinda Francis Being a real estate agent is not as easy as it looks or as people might expect. It also tends to be costly. Some people have the personality and contacts to be able to get their license and experience success quickly. Others struggle immensely. 

When I discussed the possibility of going into real estate with someone I trust, he said that I should not expect to start earning back my investment of time and money for 6-12 months. He was right, but that is the nature of investing time and money.

As a person who has introverted tendencies, yes, being a real estate agent has helped me to get beyond my insecurities and forced me to network with people. I keep learning as I go, but I still have to step outside my comfort zone to do these things.

There is a certain level of satisfaction that comes with stepping out and doing something you are not comfortable doing and experiencing the success in doing so. I do really enjoy helping people to achieve the dream of home-ownership or seeing the relief of getting a property sold for someone who needs to move on.

One thing to keep in mind... I provide a service. I do not see myself as a salesperson (even though that is what my license says).

Whether or not you personally find it beneficial to become a real estate agent as a stepping stone to other investment, like I am trying to do, is really up to you. You need to assess what you are trying to achieve and what paths will produce the opportunities to get you there. Choose a path and follow it without looking back. Grow and change as you go.

I have several things that have been keeping me back that I am working on simultaneously.

1. Financing: I have always had a tight personal budget. Some years are better than others as you can all relate to. At one time, my only debt was my mortgage... then I moved 1000 miles and all that changed. Working that out and making sure I have good cash flow personally has to take priority, but soon I expect to talk numbers with lenders to see what is possible.

2. Knowledge: I do not come from a construction background, and I certainly lack the skill to do most of the work myself. I am learning what it takes to look at a property and evaluate what needs to be done and how that will affect the value. Which leads me to...

3. Contacts and partnerships: I need to build relationships with local investors, lenders and contractors and learn from them how the process works, who to go to for what and when as well as how I can help them reach their goals.

Since my broker has done a few flips himself, he has provided insights and will continue to do so.

I agree with @Daniel McDonald. Find an agent who believes in the value that you bring to the community and desires to partner with you in that venture. Make sure the agent has a desire to learn what they do not know about your side of the industry and is willing to work with you to make a partnership work. This could offer the best of both worlds for both of you.

For example: myself... 

I am looking for a team of flippers to buy and sell in partnership with because I hate seeing derelict houses when there are so many people who need to purchase their own home. I do not have the contracting skills to do the work myself. Nor do I presently have the capital to buy and contract out the work.

Just because I do not answer the phone immediately or get back to you right away does not mean I am not interested (though that may be the case for many others), it just means that I cannot talk right then. I may be involved with something and cannot get back to you for several hours or the next day. I take calls on Saturdays when I can, but try not to do anything Sundays. Everyone needs to set boundaries and have some down time. "A one-man 24/7" expectation is unreasonable and will eventually cause a person a multitude of problems.

I hope this helps.