01-20-2009, 05:51 AM
Undoubtedly this has all been covered before, but perhaps in these trying times it doesn't hurt to discuss ways to save money.
I am sure the realtors posting here are competent and work hard, but I have found they are not absolutely necessary for buying/selling real estate. I am encouraged to hear from Mr. Rabi there are realtors who offer different packages at different rates and one can pay as little as $500 for their basic service. Fantasitc, this is even better than using MLS on your own and buying your own sign! I think Mr. Rabi's agency is the way of the future and I hope it survives the miserable downturn we are in now. 20% for fees and commission to sell a vacant lot of land means to me someone is being greedy and trying to profit off a simple transaction.
A few other points:
- One can find a real estate lawyer who will draw up necessary contracts between buyer and seller for less than $1000.
- Real estate agents are not responsible for escrow and in my case only recommended an escrow company. A buyer and seller going through escrow can deal directly with their escrow companies.
- Anyone can pay for a title report and title insurance. A real estate agent is not necessary for this transaction.
- While most people choose to go the escrow route, it is not a legal requirement - but it is a good way to park the money and make sure it's not released until the title is conveyed! But another 3rd party, e.g. lawyer can also hold the money and only release it when the change of title is recorded.
Those of us whose main careers were in the 80s and 90s must recognise the world is not the same today. My kids run rings around me on the computer and I would bet my house they are going to Mr. Internet first when they are ready to buy their first home. Realtors were probably invaluable when there was no world wide web but now the information is out there! You can get a lesson on how to buy and sell real estate, how to read a contract, how to read title documents, how to deal with escrow companies, what pitfalls to look out for, etc etc. It's all there, free and at your finger tips.
I have nothing against realtors and wish them all the best but I agree with a previous poster - a few days work can save a seller a lot of money.
And with the economy in the doldrums, isn't saving money any way you can a good thing?
I am sure the realtors posting here are competent and work hard, but I have found they are not absolutely necessary for buying/selling real estate. I am encouraged to hear from Mr. Rabi there are realtors who offer different packages at different rates and one can pay as little as $500 for their basic service. Fantasitc, this is even better than using MLS on your own and buying your own sign! I think Mr. Rabi's agency is the way of the future and I hope it survives the miserable downturn we are in now. 20% for fees and commission to sell a vacant lot of land means to me someone is being greedy and trying to profit off a simple transaction.
A few other points:
- One can find a real estate lawyer who will draw up necessary contracts between buyer and seller for less than $1000.
- Real estate agents are not responsible for escrow and in my case only recommended an escrow company. A buyer and seller going through escrow can deal directly with their escrow companies.
- Anyone can pay for a title report and title insurance. A real estate agent is not necessary for this transaction.
- While most people choose to go the escrow route, it is not a legal requirement - but it is a good way to park the money and make sure it's not released until the title is conveyed! But another 3rd party, e.g. lawyer can also hold the money and only release it when the change of title is recorded.
Those of us whose main careers were in the 80s and 90s must recognise the world is not the same today. My kids run rings around me on the computer and I would bet my house they are going to Mr. Internet first when they are ready to buy their first home. Realtors were probably invaluable when there was no world wide web but now the information is out there! You can get a lesson on how to buy and sell real estate, how to read a contract, how to read title documents, how to deal with escrow companies, what pitfalls to look out for, etc etc. It's all there, free and at your finger tips.
I have nothing against realtors and wish them all the best but I agree with a previous poster - a few days work can save a seller a lot of money.
And with the economy in the doldrums, isn't saving money any way you can a good thing?