Real Estate Agent recommendation

[HereOnThePrimalEdge]

never ask a barber if you need a haircut.

How about a real world example:

Take all of the properties that are for sale at any given time on the Big Island.
1) What percentage do you think are listed by a real estate agent?
2) What percentage are FSBO?

I'm guessing if you insist on avoiding a real estate agent, you've limited yourself to about 5% of the properties available for purchase. Personally, I'd rather choose from all that are available, and maybe pay a little more. Although that's not even always the case, because do any of us know what a property or home is worth just by looking at it? You might pay too much for a FSBO because there are only two parties guessing the market value, seller & buyer.

"How we spend our days is, of course, how we spend our lives." -Annie Dillard

[PaulW]

"because do any of us know what a property or home is worth just by looking at it"
No, and that includes realtors. Especially realtors, because they have a vested interest in stretching the truth about the value of a house because all they really care about is their commission. With the internet you can do far, far more research than any realtor will bother to do.

So we should all use MLS because most of the houses are on MLS? Only until people wake up to what a con the real estate business is.
Craigslist is a good place to find FSBOs, and save yourself tens of thousands of dollars.

[Dinamight]

I have bought and sold property in Hawaii with and without realtors. Currently I have a home for sale by owner (FSBO) - the same home is also listed on the MLS. Yes, both FSBO and MLS. It is possible to do both. Clearly the price I accept for my home will be affected by how I sell it.

If a Buyer uses a Realtor (note I will use Realtor for both Realtor and Real Estate agent to keep this less wordy), I will have NO CHOICE but to ask the Buyer to pay more to meet my bottom line. When flat listing you can choose to offer a fixed percentage or negotiable commission – I chose fixed.

Since listing I have had viewings brought in by Realtors who have seen our property on the MLS and directly from our own ads (Zillow, street sign, etc).

Contrary to what HawaiiTedd says, it is absolutely not necessary to have a Seller’s realtor to list on the MLS, all you need to do is find a listing agent, who will charge you a few hundred dollars to list your home on the MLS. By offering a Buyer’s realtor a fair commission, you will increase the chances local realtors will show your home to their clients.

So who pays for the realtor? I don’t think PaulW made himself clear. This is how realtors get paid – using real numbers (rounded) as an example

With Realtors:
Selling Price $425,500
Commission 6%
Buyer Pays $425,500
Realtors Get $25,500 (Sellers Realtor $12,250, Buyer’s realtor $12,250)
Seller gets $400,000

With NO Realtors
Selling Price $400,000
Commission 0%
Buyer Pays $400,000
Realtors Get $0
Seller gets $400,000

SO, if the Seller wants to make $400,000 he can sell his house for $400,000 directly but by using realtors, he would have to price the home at $425,500 to earn the same $400,000

In other words, the Buyer HAS to pay more to meet the Seller’s bottom line. Realtors like to say “the Seller pays the Realtor fees” but how does a Seller pay the fee? By charging more for their house. This is what PaulW is trying to say – the Buyer pays MORE for the property to cover Realtor fees!

Sites like Zillow and Fizber have thousands of homes FSBO, with options to contact a realtor or the homeowner directly. Transactions without realtors go on all the time and are successful with open dialogue between Buyer and Seller, a legal sales contract and the use of a reputable escrow company. Arranging home inspections, termite inspections, surveys, etc, is all something that can be done by a Buyer and Seller.

Bottom line is you will pay less for a home if it’s sold by owner, because the owner is looking to make a certain amount of money AFTER all commissions/fees are paid. On homes worth half a million or more, this could be a savings to a Buyer of $30,000 and upwards.

[sactokim]

Hi Vic - we are in Sacramento, planning to move to Puna in a few years, and worked with Tedd Heilmann to complete a purchase that closed this month. The brokerage he's with specializes in representing buyers. We recommend him: http://www.realestatehawaiibigisland.com/ (We'd retire to Oregon - but a bit too cold...)

Regarding FSBO (for sale by owner) Tedd represented us in such a purchase. I would not recommend buying directly from an owner without an experienced agent representing you. (Also we purchased a lot in a subdivision we had visited. I would not buy a house unless you are there ready to move in. You can't leave it vacant, and being a distant landlord is full of risk.)

[terracore]

Sounds like Paul has something against realtors. I'm okay with that. I have both bought and sold without them in more than one state (including Hawaii).

BUT sometimes you need a professional to help protect your interests. There is an option between NO REALTOR and having a realtor: A negotiated percentage. A friend of mine (seller) negotiated with their realtor that they could simultaneously pursue FSBO options while the property was on the MLS. If my friend found their own buyer, the agreement was that the commission would only be 0.5%. He had his own open houses, Craigslist ads, etc.

In my last real estate transaction I negotiated that I would pay our realtor a flat rate $500 because we were already in preliminary agreement with the buyer. I got sick of dealing with their BS and even though the bases were loaded I was willing to pay somebody to knock it out of the park.

(p.s. I don't buy that Realtor ™ bulls!t, if somebody is licensed to participate in the buy/sell process I call them a realtor. Somebody's lame attempt to extract an even higher percentage out of a deal they probably aren't fully entitled to in the first place by invoking trademark laws only frustrates me further. I will always call a "real estate agent" a "realtor" the same as I call every "adhesive bandage" a "band aid".

[DTisme]

Of course another way to avoid involving an agent is to buy a property that isn't on the market! (i.e., come to an agreement with someone who hasn't yet listed their property)

[ericlp]

oh well, so much for helping out the new guy... Sigh... Figured it would get into some sort of pissing match sooner or later. Welcome to Punaweb!!!!!!

[VancouverIslander]

Anyway, if you do decide to look for a place to buy eventually and are looking for a real estate agent, consider Jerry Bragdon (his office has the somewhat pretentious name "Worldwide Realty Inc.). Nice guy, knows Puna extremely well. Lives in Eden Roc.

Just call me Mike

[Vic]

Thanks for all the replies, we are taking a serious look at side by side lots in Nanavale. We are working with John Erickson of Remax based on a friends recommendation.

As far agent vs no agent. There are circumstances I would avoid an agent to save money, and times I wouldn't, this isn't a case for me for avoiding one, even though I can appreciate saving money. The purchase price of this property is small therefor the cost is small, and the value of advice and having an advocate there is invaluable to me.

I still don't think we are going to visit before purchasing since, A.) This is small amount of money that is pretty close to the bottom of historic sales in the area, and B.) I feel that if there is something undesirable that the agent doesn't notice, we could always sell in the intervening years.

There is no SSPP cost for this property, there is only one neighbor on this street, and there are no albizia trees, can you call think of a list of things that could be a problem that I should ask about and/or research?

Cant wait to live in Puna!

[shockwave rider]

Internet and cable access may be an issue with so few neighbors, security too, unless the neighbors are the security risk. Don't forget to look at what is on the street behind the lots too, with small lots those neighbors are close to you as well.

Nanawale is mostly a'a lava, which makes for pretty rough bushwhacking to ask your agent to do. People have discovered everything from giant pukas to dead cars with trees growing through them once they got things cleared, but that is a risk anywhere in Puna. With two lots you should have a buildable space on at least one of them, and a puka can make a nice landscape feature if you want to stick with a natural look.