Posts: 5,640
Threads: 101
Joined: Dec 2008
The buyer is the only one pulling out their wallet so they must be the ones paying. For everything.
I know of at least one case in HPP of a buyer and seller meeting through Zillow. No realtors involved, title handled, no problems. Except for the realtors who missed out on tens of thousands of dollars to complicate the deal and insert their lies and typos.
Posts: 4,261
Threads: 96
Joined: Mar 2014
My understanding is if you have a buyer and seller agreeable on a deal, you can sometimes go directly to a title company and get them to do all the paperwork at reasonable cost.
--------------------
Happens every day. I have done this in several states. It is just as fast and painless as having a real estate agent along for the commission.
Posts: 966
Threads: 61
Joined: Jan 2006
actually you are getting a bit more for your commission, you are sharing liability. if you have ever had a lawsuit over a real estate transaction you might find it actually a deal. i have done a lot of real estate on this island and use peter kubota attorney, if not using a realtor. he will write up a contract for a very nominal fee. again, it is not the hours spent it is someone who knows to cross all the Ts so the deal doesn't come back to haunt you..
Posts: 7,746
Threads: 686
Joined: Jun 2011
"My understanding is if you have a buyer and seller agreeable on a deal, you can sometimes go directly to a title company and get them to do all the paperwork at reasonable cost. (The title search to ensure that the title is clear is very important.)"
The first house we bought was a FSBO and neither side had a realtor. Like somebody else said the title company actually does all the work. The seller sold the house to us under market rate because she wasn't paying a commission.
Now if the seller has a realtor, they can't enter into a private sale agreement for X amount of months after the realtor relationship has expired. I believe the X was 6 months when we had a realtor. I don't know the rules for buyer's realtors.
I knew another guy, seller, and the buyers couldn't come up with enough money to buy his house. To make the deal both realtors agreed to lower their commissions and add it to the buyer's offer. Of course they both refused when he first suggested it, but when it was clear he was absolutely going to walk away from the deal they changed their tune. They had already invested time into it and he was willing to take his house off the market meaning NOBODY would see a return on their time investment unless they made the intelligent choice.
Okay, last one for this post: I know another guy, a self-made millionaire, and when he buys a house he writes the offers such that his earnest money is essentially 100% refunded regardless of what happens. Then he makes an offer on two homes he's willing to buy. This usually involves three separate realtors. This forces the sellers into bidding wars against each other and immediately drives them down to whatever lowest offer they are willing to accept. It's less effective in a strong seller's market but in a neutral or buyer's market it gets him the best deal. If one is available he likes to choose a builder's property as one of the houses, because the other seller knows they are competing against somebody selling a brand new home with a warranty, and the builder already knows what their break-even point is and can offer their lowest price without any emotion.
Posts: 11,065
Threads: 755
Joined: Sep 2012
Good article about the realtor’s 6% commission, and a lawsuit that might end their anachronistic scheme. What are realtors accused of? Collusion:
https://www.cnn.com/2019/05/15/economy/r...index.html
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
Posts: 8
Threads: 5
Joined: Apr 2019
Thank you all, this helps a lot. I’ll be sure to pass names and information along. Another question, do all realtors charge GE tax when selling a home? This is what one realtor said would happen when they go to sell. my friend understand there is the Off island tax but we were unsure about the GE tax.
Posts: 1,120
Threads: 57
Joined: Mar 2013
Good link, HOTPE. And I learned a new word: disintermediation
Posts: 1,123
Threads: 68
Joined: Mar 2015
Tax is paid in escrow. Any real estate questions feel free to call my friend Ed Torison
Hilo bay realty. 9873215 very knowledgeble
HPP
HPP
Posts: 7,746
Threads: 686
Joined: Jun 2011
quote:
Originally posted by AnnieFC
Thank you all, this helps a lot. I’ll be sure to pass names and information along. Another question, do all realtors charge GE tax when selling a home? This is what one realtor said would happen when they go to sell. my friend understand there is the Off island tax but we were unsure about the GE tax.
I've never been charged a GET on real estate transactions in Hawaii. If somebody is trying to charge you one, it's either a misunderstanding or they are trying to scam you. I just did a cursory look on the internet and only came up with responses that GET doesn't apply to real estate transactions. There are already a lot of taxes that already apply to owning/selling/buying real estate. It is possible that a realtor is trying to upsell you a repackaged service (I don't know... hiring a drone operator or something) where the non-real estate related fee is subject to the tax, but you're not under an obligation to accept such a service.
Posts: 8
Threads: 5
Joined: Apr 2019
Yeah we think the GET is a new thing they just tack onto the selling of property now. I inquired with a few born and raised here realtors and they said they don’t charge GET if it’s an issue. The other realtor who told us the GET was the norm when selling has just a few years experience. Mahalo Terracore!
