if you bought a house in Puna in the last 5 years

[Dave M]

"I am astounded that Realtors in this country make 6% on houses and I've been told up to 10% commission on land. With the increase in prices over the last few years their commissions have increased far beyond the normal wage increase".

And now those same Realtors commissions are far below normal wage eh there mate? Real estate is a gamble for investors and agents as well. One client may look with an agent for a year. Some listings take longer. Every once in a while one sells quick or ez like some guy walking down the street calls on a sign. What people don't understand is how much that sign cost, it's much more than the 45 dollars worth of metal that you might think.

I like the way people say we can just go on and " find our own house on MLS" who needs a realtor and then they're saying "just go for sale by owner" Hmm.. First off, I pay for that MLS that you think is so free and yes your welcome. Second, if they do go FSBO their home won't be on that MLS will it? Oh and BTW I pay for the Realtor.com as well.

There's much more to buying a house in the US than compared to the UK. Honestly clients that have previously tried "for sale by owner" make the best client in that they're more knowledgeable and grateful for the time I put in. Legal fees jump up real fast, throw in a title search, that the lawyer does himself cuz "he don't trust a Title co", and you're usually always over 6%. I think your first deal went so well because you had a Realtor [8D] and granted you probably did your homework. But honestly, a few call to a very receptive title company is far different than calling a lawyer begging for your finished contracts. Hell, I've seen RE lawyers that charged their clients every time they pick up the phone.

Myself, I usually sell land and ranches small/large. Some commercial dirt from time to time. Don't see many DIY (do it yourselfers) in Ranch sales. Most people don't know clay from soil or what kind of cover is best for deer and what pasture works for a cow calf operation. Throw in horses, goats, sheep, pigs and the assorted crops and rolling stock and it can be kinda tricky for a buyer. But I'm sure someone such as yourself if they wanted could jump on the internet and do the research and eventually make great buy. [] But it's not like looking up the taxes on a couple of houses etc..

I'm sure there are some agents out there that are "sign sitters". And I'm sure there are some liars and I know there are some that don't call you back. LOL... welcome to my world! But I don't knock that as much as Rabbi because frankly.. they keep decent agents such as me in business, []

I charge 4-6 percent and I have yet to have someone tell me I didn't earn it and most of my clients come from referrals and repeat business. Example: My investor clients (11) have 94% of their cash in their pocket/banks right now from the result of a letter/email I sent out in June. The fact that I was an appraiser for 6 years and am currently a TREC certified Home Inspector means I bring a lot more to the table, for that 4-6% than most agents. I'm honest and I sleep like a frickin baby at night. The older I get the more proud I am of what I do.[:0]

The reason I started in this thread was because I don't think Realtors are responsible for this current debacle. As for your long diatribe about not needing agents I say you go ahead with the do-it yourself maybe you'll never have a problem or maybe you'll miss an exception on your title and get your ass handed to you. Who knows? but I bet eventually you make someone a really good client.[:o)]






Blessings,
dave

"It doesn't mean that much to me.. to mean that much to you." Neil Young

[missydog1]

ric, not arguing with you about the lunch any more.
I did not "detail" it; I gave only the teeniest bit of a long complex conversation, and the summary I did give didn't convey the right idea of the whole thing, so I deleted it.

I merely observed that the same sorts of criticisms were made about the Irish by the English. Really the same arguments. It is history. The Great Famine is now considered a managed passive genocide by the British to clear their lands of unwanted tenants. (During the famine, Ireland exported food to England while the Irish starved).

Why did the British people not rise up against what was being done? All those ideas about work ethic, etc. that I mentioned in my other post, made it desirable for the people to die.

People here complain about the notion of bailouts in time of crisis. Just what the Irish didn't get, was any relief from taxes, rent, or the duty to export food to pay their rent. A bailout would have saved what turned into a loss of a full quarter of the population.

Sometimes bailouts are not fair to those that don't need them - but they are humane.

[oink]

quote:

---

Originally posted by Bystander: You should have been here back in 2006. Too bad I can't find the original "decline in realestate" thread in the archive. It was quite lively and continued for many pages. It was also quite damning for RE agents.

---

Is this it?
http://www.punaweb.org/Forum/topic.asp?TOPIC_ID=1743&SearchTerms=real,estate

Pua`a
S. FL
Big Islander to be.

[John S. Rabi]

quote:

---

Originally posted by Dave M

[green][i]...But I don't knock that as much as Rabbi because frankly.. they keep decent agents such as me in business, []

---

Dave, you probably have to deal with your own transaction and deal with the agents representing the "other" side. I have been a Principal Broker or Broker-In-Charge since 1996 and I had to deal with the transactions of EVERY agent and I had to review ALL of their contracts. When I was "just a real estate agent" I didn't think most of the agents were bad. After I became a PB/BIC I learned a lesson. Don't get me wrong, a good real estate agent is worth every penny he/she earns, the problem is just there are only a few reputable ones.
As to FSBO, I don't cut my own hair, I don't do my own dental work, I don't represent myself in court, I don't do a surgery on myself, etc. I just make sure I hire the BEST in every field. That's how it should be in real estate too, and I feel sorry for those who says "my cousin is a real estate agent, I will list it with him."

Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"

[rbakker]

After reading the above postings I realize I have a lot to learn about real estate.

I also prefer going it alone. I thought getting a listing on MLS could be done by anyone, and only cost $500 or so. Included is the availability on the web. I can make the sign myself.

Sure, if you don't do your homework, you may get burned. But saving $15K on a $250K house is worth putting in a few days' work. Or even a few weeks!

I'm sure all those writing here are good estate agents, but I've been unlucky enough to only encounter agents that won't answer emails, won't return your call and won't turn up for appointments on time, if at all.

I don't cut my own hair, but I also wouldn't dream of paying someone to help me buy or sell my car. It's not that hard.

I'm not so sure what to think about someone sleeping like a baby - don't they wake up and scream every few hours?

[ric]

Dave I'm totally confused. I don't think brokers are to blame for the current situation but I don't hold them in especially high regard either. It's a service. But your posting makes it sound like when someone uses a broker they get title insurance included, and that is part of the 6%? Seems every place I bought and sold I paid for that.

And in the last paragraph, there's this fear that something will be missed on title if a broker is not used? I've sold a few with brokers and a few without, either way I can still get title insurance myself.

Finally, I lost the point of defending brokers when you indicated how much extra you do for your clients (I'm sure you're as good as you say), doesn't that indicate that the majority do alot less than you?

If I was advising my friends or family I would say a few have the ability to sell on their own, but the vast majority don't know enough and should use a professional.

[bystander]

quote:

---

Originally posted by oink

quote:

---

Originally posted by Bystander: You should have been here back in 2006. Too bad I can't find the original "decline in realestate" thread in the archive. It was quite lively and continued for many pages. It was also quite damning for RE agents.

---

Is this it?
http://www.punaweb.org/Forum/topic.asp?TOPIC_ID=1743&SearchTerms=real,estate

Pua`a
S. FL
Big Islander to be.

---

That's a good one but there was an even longer thread called the "The Decline in Realestate". I can't get the search function to work for me. I think it has been archived and inaccessible now. That thread was even more damning and I know someone wishes it remain lost.

[Dave M]

Dave I'm totally confused. I don't think brokers are to blame for the current situation but I don't hold them in especially high regard either. It's a service. But your posting makes it sound like when someone uses a broker they get title insurance included, and that is part of the 6%? Seems every place I bought and sold I paid for that.

I was comparing using a RE Lawyer to using an agent. Title policy is a negotiable item as to who pays. In Texas you have to have/be a lawyer to issue a Title policy. When a RE Attny gets envolved they usually do the title policy themselves. Honestly, how you regard realtors doesn't "mean that much to me" as long as you're honest about what we do.

And in the last paragraph, there's this fear that something will be missed on title if a broker is not used? I've sold a few with brokers and a few without, either way I can still get title insurance myself.

Yes you can get Ttitle Insurance yourself and I didn't mean to imply otherwise what I was inferring was that you couldn't translate that policy as well as me unless you're an attny.

Finally, I lost the point of defending brokers when you indicated how much extra you do for your clients (I'm sure you're as good as you say), doesn't that indicate that the majority do alot less than you?

My point was in response to the quote/post that I was responding to(the green print at the top of the page) It's hard to speak to other agents and their business practices. Remember I do a little bit different type of Real Estate

If I was advising my friends or family I would say a few have the ability to sell on their own, but the vast majority don't know enough and should use a professional.
Like I've said before You may do Ok with a couple of residential deals but if you really think you can do a better job than someone who has done hundreds of deals you're sorely mistaken.

EXample: A young friend of mine, Steve, worked with a fellow, through email. The Buyer was very specific about what school district he wanted. While he was in town Steve showed a number of properties. After looking most of a Saturday the client called Steve and told him he didn't want to work with hime and that he had found a house he liked that evening driving around by himself. Steve asked him where? The man replied in La Vantanna. Steve replied that that area doesn't go to the school district he had demanded. The Buyer replied "that's why I'm not using you anymore because in fact that area doea have the "option" to go to the schools i wanted, they just ahve to pay a set fee to get in the district". He went on to personally insult Steve about his abilities. Of course Steve was upset and tried to explain to him that the, arrangment of buying into the district was not and has not beed used for over ten years although it was a common ploy of homeowners in this particular subdivision to help sell their homes. That same neighboehood was in a lawsuite over a failed water district as well.

In October, shortly after the start of school, that very samy buyer put his new home on the market for the same price he paid, we think. Guess what, he couldn't get his kid in the school he wanted which means his kid is probably in private school and his home has been on the market, overpriced, now for over three months, in a very bad market. Was he all that smart for firing Steve? How much do you think he's going to loose before it's all over? Who can he sue for remedy? (and get anything)

In close I'm sorry if some of you guys have had a bad expereince with a few Realtors I'm sure there are some good and bad in whatever you do, as well. To prove how much I think a local realtor brings to the table I'd like to point out that I've had a RE license in CA (Brokers) and/or in Texas since 1982. I was an appraiser for a while etc etc.. and over a year ago I contacted Rabbi and told him that I would be using a local agent because I was smart enough to know that I wasn't as Hawaiian/local smart as a "good" agent. That in and of itself says that I practice what I preach. (It would be nice if Rabbi could confirm that conversation right about here). As for you Ric..I think you'll make some agent a very good client some day. []




Blessings,
dave

"It doesn't mean that much to me.. to mean that much to you." Neil Young

[ric]

Title policy isn't that hard to read.

I've found that in MANY of the commercial deals that I've bought and sold, the broker was useless. With one drive by of the property, I was able to know more about the property than the broker. This has also happened here in Hawaii. I'm still waiting for info from one broker about some land here, over 3 weeks to get the plat of the CPR.

Still, you make the argument that brokers know everything, yet there were all kinds of non-pro's becoming brokers in the past 5-7 years. Again, you make the point that you are better than them, but that just supports the argument that many are worth less (or worthless).

I've made many agents "good clients", when I needed to. But I've never felt their fee (sometimes $60-75k) was worth the few hours they put in. And furthermore, I've seen more mistakes made on deals because the brokers are confused, don't know the deal well, and don't have their motivations aligned with either the buyer or seller.

Again, before you beat your chest, I still think most people should use one, but brokers are not the savior of the world, as some may think they are.

The trend on the mainland is starting, that many are listing thru flat-fee services, and selling successfully. There are many other people out there, just as smart as the 6% brokers, who would like to make a living, and will do it for less.

[StillHope]

Ric,can you be more specific about flat fee services?