All Forum Posts by: Matt Shields

Did you have any inspection costs?

You said, "Someone had been salvaging the heart pine floors and other materials." before submitting the offer. Are you sure it was the seller who took the materials? 
 

 I agree. When the government tries to protect people from themselves by not allowing them to take on risk, the unintended consequences are that it also takes away any opportunity for these people to better their situation. 

I include it and charge extra. In the listing, I promote that all of the landscaping is professionally maintained. Most people are lazy and don't want to take care of yard work. Also when money gets tight, they sometimes turn off the irrigation, and I end up with hundreds of dollars in dead plants. Then comes the fines from the HOA. Now I have to bill my tenants for the fines and damages, which at best causes torked off renters, and at worst I have an eviction. So I avoid all of this and hire landscapers, and as an added bonus they are eyes on the property. For example, the landscapers let me know if they see dog poo in the yard of a no pets house.

You could potentially make more money with three spec homes, but you are also taking on much more risk, especially when you have no experience in real estate or new home construction. You could probably increase your profit with much less risk by surveying/splitting the property three times and selling build-ready lots (If that is what legal, zoning, and deed restrictions allow). Just like buying products at wholesale and selling small quantities at a higher price, land works the same way. A good land agent (Don't give it to a residential agent without dirt experience) can help walk you through things.

During the last boom here in Arizona, many investors bought five-acre parcels with one-acre zoning, split them, put in a road and shared well, then sold the one-acre build-ready lots to retail buyers and small home builders. It was a profitable strategy. 

Good luck.

"Agents not smart" It sounds like you are bent out of shape because brokers are bursting your dream of agents working for free. Remember, we are taking time out of our day to try and help you. It is absolutely no benifit to us, and we could just ignore you.

Sonia. There is nothing ethically (Realtor code of ethics) or legally  (at least in my state) wrong with charging for work that you preform. Agents can be paid by commission, salary, hourly, ect. As long as it is paid through and approved by their broker (AZ law).

Actually I think for buyer's, a wage based compensation would be a better system than commission's. As it is now, the listing broker is paying the buyer's broker. Because negotiating a lower price for their buying clients lowers the commission, there is no incentive for the agent to do so. Also, the amount of commission offered by the listing broker could influence the properties that are shown or promoted to a buyer (not ethical, but it happens all the time).

Bill, the FDIC has 70 billion dollars covering over 6 trillion in deposits.

With both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have prioity over all other claims secured and unsecured, insured and uninsured.

I'm really not against this, because having the government insure deposits causes people to blindy turn over monies to any bank with an FDIC sign on the door. This has allowed banks to take high risks without their customers questioning anything.