All Forum Posts by: Kama Ward

It's just the nature of forums to have the same beginner questions over and over. The FAQ is there to help.

Bill, don't loose you're mind! Ha

In my area a decent size excavator with competent operator and one assistant costs $600 a day. I've had large concrete patios removed, lots of grading, and roads built- but no pools removed. My best guess is that it would take no more than a day to take down a medium sized backyard pool. Dirt here is $225-250 per truck- usually 15 cubic yards.

Sell it. Feel the freedom!! Take the lessons you've learned and, if you want to invest in the future, you will do it better without mixed feelings and more money in your pocket. Stay on BP for at least six months, read lots of old posts. You will be smacking your forehead about what the old you did-- and be much more confident moving forward.

Totally agree- for both flat fee and regular. A lot of them are just churning money, rather than making it, and of course many don't survive. If either one is close to the $100/hr, they make out just fine. Some people rather make 10$ and be their own boss- not smart but not as dumb as working in fast food! ha
Just playing devil's advocate. It's not the business model- it's the person in business.

How do they survive? Here's my guess for my flat fee agent (numbers rounded for easy math): she spends about 5hrs per home for me. 1hr visit, 1hr comps, 1hr entering listing, 2hrs answering emails/calls from me agents and all other misc. etc.
Her fee is $500 dollars= $100 hr. Not bad.
But let's say I'm way, way off and she spends five times that much!
That's $20hr. Not great, but if working full time that happens to be 40k per year. According to salary.com avg realtor salary= 36.5k to 47.5k.

So that's how they survive. This says nothing about how good are they for investors, of course.

In my market the avg home sold is about 200k, so a regular listing agent gets $3000 How many hours will an average agent spend selling a home? If they spend a total of 30 hr, that's $100/hour. Or if they spend 150 hrs, that's $20/hr.

Don't try to save money!

What the heck does this mean?

Don't build yourself.

Don't listen to the guy who tells you what you want to hear (listen to the pro who tells you the tough stuff up front).

Don't use your fathers friend who hasn't built a house for a few years (codes and techniques change).

Don't use a carpenter friend who asks you to pull the permits.

Don't use your carpenter friend to put the tile in your bathroom.

I have seen several friends try each of these techniques: each cost more money, more time, more worry, more set backs! They did not get all that they wanted in the house. They all say they would take a new approach if they had to do it again:

Use a current custom home builder who has built several homes this year!!

Ask real estate investors who builds homes on time/ on budget. These are usually spec homes. Then ask them which builder can roll with changes to their standard house plans. Some builders can build dynamite homes, but are not flexible. Visit homes currently being built, not just ones that have finished. Pay attention to the work site and the workers, not just the house. Is it relatively neat? Do the workers look like they're on drugs?

Don't use an architect- unless you have to. Why? Architects can get you in all kinds of trouble with their fancy new ideas. Pour over the infinite supply of home plans and pick one or two that is closest to what you want. Better yet, work off the plans that the builder you hire uses. You may need an architect/drafter to put your plans on paper- depending on the municipality and the amount of changes.

Be realistic with your expectations:
You are going to get some of what you want in a house, but not all of what you want. It just doesn't work out that way. Budget, skill of builders, local regulations, the laws of physics all work to limit the final project.

You are going to spend more money than you can get out- at least for a while. There is no way a custom home can compete with current available stock, or even new spec homes. General home price rise is what it will take to get your money out-- and for most places in the country that is so slow right now.

Look after your pennies: How many choices will you make when building your home? More than 1000, that's for sure. What if you make choices that cost "only" $100 dollars more. 1000 x 100= $100, 000 dollars! Costs add up soooooo fast. My personal preference is a smaller square feet, energy efficient, and nicer (standard) finishes. I believe most people are happier with my approach over time. It's easy to draw lots of space on paper, and a lot more difficult to pay for, maintain and clean in real life.

"only you will be willing to do the work necessary to get your properties sold in an optimal fashion..."
True. The flat fee allows me to do more for myself than full service (but less than if I had my own license).

I've gone back and forth about getting my licence. Took the class in 97, but did not go on to get my licence. I like not having to disclose being a realtor. I've played up the nice young girl who loves your house for a long time. Getting too old for that finally!

ps. J Scott if you and your wife move up here, I'll definitely switch! I'm sure you would be the best by far! Hehe! I say it in fun- but I know it's the truth.

No she does not do all the things a full service agent does-- yet she is till the best by far. The core for me is:
a. fast service and return calls
b. come by before rehab to give input
c. straight talk no pre-programmed speeches or condescension
d. awesome up to date comps.
e. good advice on any and all questions I may have
f. good network of service people I can tap into if my normal people are not available- used to working with investors instead of retail

She does follow up on showings. In this market, there is no problem with agents showing flat fee (as you mentioned in another thread). That might be a function of our small size. I have been around the block with the realtors here, since I bought my first property in this market 19 years ago.

I don't advocate flat fee over full service! It works best for me now- I have experience selling in this market, my volume is small so I can turn on the lights etc. & the full service agents I have worked with simply are not as good with the basics. I'll be happy to switch if full service does me even better.

My point was all flat fee agents are not scraping the bottom of the barrel or 'penny wise pound foolish'. Many are I'm sure! If you are a beginner, you might be best off with full service (as I advised a homeowner in another thread). Just evaluate each agent individually...

Having a really good agent is very important. In my case, that happens to be a flat fee agent. I don't use her because she is flat fee, I would happily pay 6% instead of $499 + 3%. I do have familiarity with the laws in NC and the perils of closing (to push here and there when needed). In NC, we use lawyers for every closing, so my lawyer has helped with closing hiccups as well. I'm guessing that the majority of flat fee agents suck just like the majority of regular agents do.