All Forum Posts by: Jay Hinrichs

Jay, that's not technically correct. I believe you CAN offer the buyers agent a fee; you just can't list that fact on the MLS.

Opex is the headwinds in SW FL. Opex issue in FL is as material as cap rate for commercial MFs in a national scale. If you're able to get a downpayment, DTI approval, then the opex will likely be the deal breaker.

BP Legend Bob Stevens & I mentioned SW FL a year or so back. Didn't take a genius to see this. This has been forming-- phys RE cracks are slow to mature but swift in it's action.

Austin, among other cities, is one to watch for. And a few others are in this territory and will be by Q4 2025 which will take 6-18 mos to realize. RE ETFs are showing very bearish signals which is primed for correction territory not sure if it gets there or even worse into bearish territory but let's see how that unwinds. The underlying holdings are commercial which could be a pain point for lenders.

If RE agents do what they do best--manipulate the markets-- we'll see Q2 in 2025 and 2026 get overcrowded with supply in areas that are already trending back to pre-pandemic levels.  In some areas, like Miami, that may push them to 10-14 month of inventory. The real material break and true crash is north of 40 months of inventory, once you get 1/3 of that so call it 13-ish months it's in correction territory and bearish at the 21-24 month level. At least from all the levels we're looking at here internally.  That's a long way to go, but a huge hit to anyone that bought with intending to re-fi in the short term from 2023 to today.

When you list it on the MLS you offer a percentage to the buyers agent, as you should know.

  I can pay it make my money and still feel the buyers agent didn't warrant the money when brought in at the end of the deal.

  I understand and feel bad when an agent shows a zillion house writes losing offers and does a lot of leg work.

I feel the same frustration with so e of the buyers realtor fees.  We had one flip the buyer found us on there own, had their own lender lined up, and then brought in a realtor to do the paperwork and that was really it an they made 30k of my money 💰.

another deal they again buyer found us I did the showing myself they made a verbal offer, I recommended an attorney and a reasonable realtor.  They were told by a friend to get a "local" realtor who then proceed to tell my wife/realtor how she showed her clients our property (lie) and cluster up the process as the office admin did all the real work.  Then I offered 2.5% for the buyers agent she charged the full 3% with them paying extra at closing 🙄 this is why there is all the law suits!

 finally a good answer 

Thanks to everyone who took the time to answer. The explanations I got are about 1- the value and 2- the expenses, self-employed, no health insurance/vacation.

I have a question though. The process/work is the same with every transaction; it doesn't make a difference if the house is 100k, 500k, 1mm, or 2mm. The fact that commission is percentage-based is weird because why would someone doing the same thing make double as someone else? c

In other words, I do understand when the realtor fee for a 400k is $20k. but when I sell a home for 2.2M and I pay a realtor $110k things start to not make sense. Yes, I do flip homes for this price. average Americans earn this amount in a full year! 

For those asking, staging is paid by us. 

Talk to @Allen Duan - he manages numerous MTRs in the Las Vegas area and knows it very well.

in the case you are describing where you put money into an event, making a large amount of money seems to be appropriate given the risk you took with that 50k. 

In my case, the towns are extremely desirable and there are tons of buyers  eager for any remodeled home. so why is a realtor that makes 2 showings and pushes a few papers deserving of 60k pay? I cannot for the life of me understand this. There is absolutely no out of pocket cost to them and they take 0 risk. 

Hi Jay, the affordable housing requirement can definitely be a dealbreaker for some projects. And you're right, those timelines are often misleading since the real delays come from back-and-forth revisions after submission. Still, at least this is a step toward streamlining the process. Hopefully, it actually plays out as intended.