A Warning To The Real Estate Cartel Real Estate |
- A Warning To The Real Estate Cartel
- Update 2 [TX] finally got an offer accepted only for seller to try to back out after option period
- How available should my realtor be?
- If you like it, buy it.
- If you bought recently, how much over (or under) asking price did you go? US
- Deciding where to buy: climate change considerations
- Seller has completely stopped maintenance of the house while in contract... What should I do?
- Should I make an offer on a conditionally sold property?
- CA - Bill of Sale
- How do you run your real estate team?
- Done looking for a house
- 203k loan process questions
- Are listing agents obligated to disclose all offers to the seller?
- Are you looking for a one story house or a two story house?
- When to transfer my down payment money to my checking account?
- Need help fam
- Gift of equity and capital gains tax if I sell
- International Mortgages - Advisor
- Question about USDA Section 502 Guaranteed Loans
- Directory website for Owner-Financed Deals - good idea?
- Monthly mortgage payment due dates
- Can anyone recommend a good book on renovating or interior decorating
- What are some must have software and tools in Real Estate that have made your life much easier?
- Do you pay TAXES on the profit from sale of your home?
- The implications of being “the most expensive house on the block”?
| A Warning To The Real Estate Cartel Posted: 09 Jul 2021 01:57 AM PDT https://www.wsj.com/amp/articles/warning-to-the-real-estate-cartel-11625783854 Text from behind the paywall: The Justice Department backed out last week of a proposed settlement with the National Association of Realtors to take a fresh look at the notoriously high commissions consumers pay real-estate agents. The move sent shock waves through the housing industry. The government occasionally brings an antitrust case and later decides to dismiss it. But never have federal antitrust authorities agreed to a proposed settlement only to back out after receiving public comment. The real-estate lobby called the move "an unprecedented breach." But there's a much larger concern for legacy brokers than the novelty of the about-face. The signal from Washington is that antitrust enforcers are prepared to dismantle the collusive practices that burden U.S. homeowners with brokerage costs two to three times as high as in the rest of the developed world. As authorities prepare a fresh inquiry, they should give close scrutiny to the bizarre way Americans pay real-estate agents. Unlike any other business, when a homeowner decides to sell, he must agree to pay two agents—his and the buyer's. It's a one-of-a-kind arrangement. The buyer agent is supposedly representing the buyer, yet is compensated by the seller. In other agency businesses, each client pays his own agent. If you want a white-shoe law firm to represent you, you can pay for one. But a local practitioner may do just as well, and clients have that option as well. The result is real price competition. Real estate, by contrast, has a third-party payment system, which produces predictably inflated prices. Many home buyers would pay a lot less than 2.5% to 3% of the price of the home, the standard rate for buyer agents. Last year, 97% of buyers started their home search online, without the assistance of an agent. Increasingly, home buyers are finding their next home first, and then contacting an agent second. But buyer agent fees can still be as high as $15,000 on the purchase of a $500,000 home because the buyer doesn't set the price of his agent. The seller does, and he's pressured to pay to the hilt. A training manual from one of the nation's largest brokers lays it all out. It advises agents representing sellers to tell their clients to offer 2.5% to 3% to buyer agents. After all, "if an agent has 10 different houses, nine of which come with a 3% commission, one of which comes with a 2.5% commission, which one do you think they're going to show?" YouTube contains dozens more videos of similar training from other brokers and real-estate coaches. It's the way the industry operates and the principal reason real-estate commissions remain at pre-internet levels while transaction costs have hit the floor across the rest of the service economy. The industry lobby has two defenses for the mandatory commission rules it established decades ago and continues to enforce. The first is that the arrangement has been around so long. But there's no easement under federal antitrust law for long-running violations. And unlike other current targets of antitrust scrutiny, holding the real-estate industry accountable requires no departure from the well-established consumer-welfare standard. Industry rules have created the most obvious consumer welfare harm—nosebleed prices Fans of the outmoded commission structure also claim there's solace in the fact that it's the seller who pays the agent fees because at least the buyer doesn't have to pay. That defies logic. When a home is sold, it's the buyer who pays. What industry defenders are really saying is that buyers have the privilege of borrowing more money to pay for homes because the inflated cost of agent services are baked into the sale price. The pandemic real-estate economy has been tough on aspiring home buyers. But help may be on the way. [link] [comments]  |
| Update 2 [TX] finally got an offer accepted only for seller to try to back out after option period Posted: 08 Jul 2021 10:21 AM PDT The previous saga First Post, Update 1 So since the last post everything had been going along swimmingly. They didn't cause any issues with the inspections and appraisal. House appraised better than expected for us which was a win. And we saw evidence from the appraisal photos they were packing up. That is to say everything was going great until Tuesday, less than a week before close. Our realtor tries to setup the walkthrough on the weekend with theirs and gets stonewalled. Their realtor cant even get in contact with them. Finally this morning we get a text from our realtor. They are refusing the walkthrough. No reason given they are just pulling shit again after we got in writing from the sellers realtor that they will not be trying anything. So still waiting to hear back on this mess but the hell they are going to refuse a final walkthrough. Edit 1: Broker will be reaching out to them today and letting them know that they will be in breach of contract and the number of legal options we and the realtor will be taking against them under Texas law unless they relent and stop the games Edit 2: Walkthrough is a go. Would love to know what my realtors broker said to them but just happy that we have turned a page there and hopefully we dont find out some shady shit happened that was making them try to pull that. [link] [comments]  |
| How available should my realtor be? Posted: 08 Jul 2021 03:36 PM PDT As we all know this market is crazy. I can't even imagine how stressed Realtors are right now. With the highly competitive market, buyers need to be able to make offers ASAP if they want them to be accepted. Unfortunately my realtor (while very knowledgeable) is never available to show a home within 24 hours. When I ask her to show me a listing, she often tells me that she's not available until 2 to 3 days out and she often can only show me the property during business hours. Homes in my area are under contact within 3-4 days of listing so I don't really have time to wait 2 days for her to be available. I've already lost out on two properties because she couldn't show them in time. Should I find another realtor or just accept that everything is just fucked up right now? Note: My realtor is very kind and VERY knowledgeable. I think she's very good at her job. It just seems like she's too busy to help us in this highly competitive market. [link] [comments]  |
| Posted: 08 Jul 2021 07:54 AM PDT Previous posts: https://www.reddit.com/r/RealEstate/comments/moxwpt/update_to_should_i_stretch_my_budget_for_my_dream/ This was the worst decision I've ever made. I'm sad about it every single day. We gained nothing by not buying. I have nothing but disappointment to look forward to because no house will match that one, and I could have had it. I kind of want to die. Not really, but idk how to be truly happy ever again, knowing what I could have had. I tried to make a smart decision but in fact it was very very stupid. If you want something, get it. [link] [comments]  |
| If you bought recently, how much over (or under) asking price did you go? US Posted: 09 Jul 2021 02:39 AM PDT Hi I was looking for a house and before I began I thought I'd be able to get a great, bigger place for much less if I moved areas. Yet this didn't account for people going 20-30k+ above asking price which I wasn't aware was so common. Now I'm wondering for those who recently purchased, how much above (or below) did you make your offer for? And if you could say which area you bought in. I'm considering holding off buying for now and want to get a sense if it makes sense for me to be trying right now or not. Thank you. [link] [comments]  |
| Deciding where to buy: climate change considerations Posted: 08 Jul 2021 07:01 AM PDT Has climate change concerns affected your choice of where to buy? Just read this article about the threat to Chicago's drinking water and realizing the issues are not as straightforward as "don't live near the coast". "...increased rates of evaporation — from hot weather — have also left Lake Michigan at risk of falling so low at times that it would no longer flow into the Chicago River. The river would flow into the lake. That would be a problem, given that the river carries away the city's wastewater — and the lake is the source of the city's drinking water. The flow between drinking water and wastewater should obviously go in only one direction." A Battle Between a Great City and a Great Lake https://nyti.ms/3xpqH5V [link] [comments]  |
| Seller has completely stopped maintenance of the house while in contract... What should I do? Posted: 08 Jul 2021 12:58 PM PDT First of all, I want to point out that the seller of the home I'm buying is a house flipper. He never lived in the home so it's not like he moved far away and can't manage it. He's from a local agency. Because of some deed ownership dispute over the property, it took almost 3 months to get a closing date since we had our offer accepted. That has been resolved, however, in all that time it appears that the seller has not done any very basic maintenance to upkeep the property (outdoors, at least). When we went to the initial showing, it was almost perfect with only minor things like needing some repainting on the exterior. Flawless interior. However... In these three months that I've been periodically driving by (I currently rent close by and have needed things like pictures for the home security company and other planning) there's been dog shit left in the yard, grass not mowed (random tomato plants are literally growing in the grass), mail piling up in the mailbox, illegally tattered US flag on the flagpole, trash scattered in the driveway, etc. Which is not only inviting things like ticks in the grass, but potential vandalism by people who can clearly see this house has been vacant for months and months. Recently, the fence was caved in and destroyed by the neighbor's kids. And one of the window screens on the other side of the house was bent as if someone tried to break in. We asked if he could either get it fixed or give us a credit. The guy's response was to just put the fence back on the post and bend the screen back into place, "No credit necessary." Well, the fence is still severely warped and damaged and you can still see the damage to the screen, so I'm not sure I agree. Because either way, it was not like that when we submitted our offer, among all these other things. So the fact that he hasn't been upkeeping maintenance is frankly just insult to injury at this point. Is the seller obligated to clean these things up before closing? What should I do? We still want the house because we absolutely love it (in the condition it's supposed to be in) and in this market, it took a lot of time, effort, strategy, and luck to even secure this house. So we're not trying to give it up. But this just seems really tasteless by the seller. First-time home buyer. [link] [comments]  |
| Should I make an offer on a conditionally sold property? Posted: 08 Jul 2021 07:13 PM PDT I came across a place which ticks all the boxes in my requirement diary. So immediately when I went for a viewing, I decided to make an offer but my realtor informed me that the place has been conditionally sold and stays in that state till the 12th of this month. I still want to make an offer, so if the deal falls apart, I can be first person to hop in but my realtor is suggesting to wait till the 12th and make an offer only if the deal fails. His reasoning is that if I make an offer, the owner might push the first guy to seal the deal by letting him know that he has a back up offer. What do you guys suggest is the best move? FYI - My offer will be what the owner has asked for or even a little more. [link] [comments]  |
| Posted: 08 Jul 2021 08:01 PM PDT Question:
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| How do you run your real estate team? Posted: 09 Jul 2021 03:33 AM PDT Hi everyone, I'm in the beginning phase of building my real estate team (myself, admin, and two other agents). I'm curious as to how some of you operate yours? How often do you have meetings, goal setting, etc. My plan in a nutshell - daily meeting at the office 8am followed by group lead gen -2pm check in -6pm review -Sunday planning My biggest question is, is meeting at the office at 8am normal for some of you? I don't mind it myself at all and by that time I've already been on a 7:30 role play call and another 7:45 team meeting. I suppose if someone's against it then I've chosen the wrong candidate for the team. Any input is appreciated! [link] [comments]  |
| Posted: 08 Jul 2021 12:47 PM PDT I've been working with my realtor since December and still haven't found anything. I've put in some offers and someone else came in higher. I haven't even seen anything I've liked in months and with this market, it's just too much. I'm going to stop looking. Should I get my realtor something for taking the time she did to help me out? Like a gift card or something? [link] [comments]  |
| Posted: 08 Jul 2021 07:25 PM PDT I'm currently pre-approved for a 203k loan and I have a property I'm highly interested in and am looking to possibly place an offer on (I've only taken out a VA loan and a conventional loan prior first time 203k) My question here is what are the steps some people may have taken when just starting out the 203k process? I've browsed and read some posts but I guess my main concern is, when do you start looking for a consultant off the HUD site? I'm in the process of requesting some rough quotes from contractors to see the pricing of the project (guesstimate is about $100-120k). I do see that a contractor has to be FHA/HUD approved and have mentioned that to every General Contractor I contact and it hasn't seemed to be a deterrent except for a couple. I gues my understanding and maybe some others can chime in is, is it correct to grab some rough estimate bids before placing an offer on the house just to be safe and know where I stand? [link] [comments]  |
| Are listing agents obligated to disclose all offers to the seller? Posted: 08 Jul 2021 10:32 AM PDT As the seller, is my listing agent obligated to disclose all offers received? Can anyone besides the listing agent verify if additional offers come in? I haven't signed a listing agreement yet, having concerns about our "potential" listing agent. Thank you in advance for your feedback. [link] [comments]  |
| Are you looking for a one story house or a two story house? Posted: 08 Jul 2021 12:30 PM PDT I'm looking for a one story so was just curious what others out there preferred. Also, I've never lived in a two story before… are there any differences from owning a one story that I should know? Besides having two AC units… [link] [comments]  |
| When to transfer my down payment money to my checking account? Posted: 08 Jul 2021 06:40 PM PDT Sorry this may be a dumb question, but as a first time homebuyer I want to make sure this goes as smooth as possible. I will need to transfer around $50,000 from my high yield savings account (Bank A) to my checking account (Bank B) in order to wire transfer the money at closing. How long should I wait before I transfer the money out of my high yield savings account? I am around 2 weeks to my closing date. I'm paranoid transferring that much money too soon just to sit in my checking account for 2 weeks. [link] [comments]  |
| Posted: 09 Jul 2021 12:11 AM PDT So I'm a young man at 27 years old and am looking for advice to purchase a Condo in California. A 1 bedroom 1 bath but has huge potential to flip. The HOA's are super cheap at $200/month and association fees at $200. Not. House is somewhere around the $210,000-$230,000 range. The biggest part of this potential investment is that I can actually flip this condo since I do all the construction as a General Contractor. All I would put in is the material. I'm very aware that in the next 1.5 years the market may crash but am willing to hold for a few years until it rises again. Please help, obviously rent in Cali is out of the roof at the moment and potentially buying may be the best idea to do at the moment. Just solely off an "estimate" I'd be paying roughly $1200 overall a month for a 1 bedroom condo. The condo does need a major upgrade so I see the benefit there. [link] [comments]  |
| Gift of equity and capital gains tax if I sell Posted: 08 Jul 2021 08:02 PM PDT I bought my primary residence from my parents. The purchase price was 300K but the mortgage only had a 180K left on it so 120K was a gift of equity. Is my cost basis on the home if I sell 300K or 180K? Also, the fmv I'm guessing is around 450K. How much would my cap gain tax be and can I avoid this tax if I stay here at least 2 years? I've only lived in the house for a little over a year. [link] [comments]  |
| International Mortgages - Advisor Posted: 08 Jul 2021 07:14 PM PDT Hi there, We are British who have been living in the US for over 5 years and are considering purchasing a home in the UK close to family in the view of future-planning while the move back may not be immediately. Speaking with a UK-based mortgage advisor led us to several dead ends who effectively said he would not be able to apply for a UK mortgage while we were not on UK soil and not earning our income through the UK. With that said, he suggested looking in to international mortgages with banks that have both UK and US branches - HSBC, NatWest, Barclays etc. Not quite sure if that is the same as an expat mortgage as we are still non-residents on work visas here in the US. My question is if anyone has a recommendation for a US based mortgage advisor or broker who is versed with buying UK property? Thank you. [link] [comments]  |
| Question about USDA Section 502 Guaranteed Loans Posted: 08 Jul 2021 07:07 PM PDT Hey folks, quick question. Im looking at a USDA loan. I know that I have to count all of my household income ( I have working children in the house that are saving for their own house, for example ) and I count their income into the pre qualifying amount to see if I go over the income maximum ( I don't ) but this leaves me with a question. In a normal loan situation If I was applying with a co-applicant it would use their credit rating as well as mine. I have a high credit rating but they don't have one. The bank would take the lowest one to qualify me. But with a USDA section 502 loan I am not using that person to qualify for income, but they are listed on the paperwork. So does their credit rating matter? Basically since I still go through a bank to get the loan will they look at the credit of every person on the paperwork even though I am the one applying for the loan? Its probably a simple question, but I can't seem to google my way around it. I sent a email to the USDA folks but have yet to hear back. So I was wondering if anyone here had any thoughts on it. [link] [comments]  |
| Directory website for Owner-Financed Deals - good idea? Posted: 08 Jul 2021 07:02 PM PDT Hi guys, I am a Real Estate investor and a full-time software engineer. So far I have acquired 2 rentals and 1 primary residence in CA where I am converting the garage into an ADU to rent out. When searching for rentals to buy, I sometimes come across properties that offer seller-financing. They are usually hard to find, especially in this market, but sometimes I do see them. I would love to buy a rental with a 10-30% down payment and work with the seller directly rather than go to the bank every time. So I have an idea of a website/app that I could develop that would basically be a directory/listing/aggregator platform that shows properties where the seller offers some sort of financing. Down the line, the platform could also help with the transaction/escrow/docs for the purchase to make things easy for buyers and sellers. I have developed and maintained similar platforms before and I believe I have the skills to build a minimum viable product that works. I got 3 questions:
Thank you! [link] [comments]  |
| Monthly mortgage payment due dates Posted: 08 Jul 2021 05:40 AM PDT Finally got to close on a house! Now I have a question about payments. I've been told that there is a grace period (also explained to me by my attorney -- 15 days past due) after the due date (1st of each month). Is there anything bad about making *every* monthly payment after the due date BUT within that grace period (e.g. the 5th)? Will there be any consequences if I keep on doing that? Thanks! [link] [comments]  |
| Can anyone recommend a good book on renovating or interior decorating Posted: 08 Jul 2021 12:44 PM PDT i'll be buying a home soon (hopefully) and this is an area where i need to brush up my knowledge. any suggestions would be greatly appreciated. [link] [comments]  |
| What are some must have software and tools in Real Estate that have made your life much easier? Posted: 08 Jul 2021 09:57 PM PDT |
| Do you pay TAXES on the profit from sale of your home? Posted: 08 Jul 2021 09:36 PM PDT The money you make on the sale of your home, after you've paid off your mortgage, do you pay taxes on the left over profit you made? I was planning on spending some of it toward down payment on new home as well as furnishing the new home, etc. [link] [comments]  |
| The implications of being “the most expensive house on the block”? Posted: 08 Jul 2021 09:34 PM PDT My dad is trying to talk me out of buying this house. The seller accepted our offer of 15k over asking basically immediately (we were the very first showing). As soon as my dad heard about this, his main points were: this is the worst time to be a buyer since it's a sellers market, I'm not making a good investment, and I don't want to be in the position of being the most expensive house on the block. I mean he's not wrong, because it would be if this purchase goes through. I do like the house, but I have the feeling that I'm overpaying, and the last price the houses around it sold for sits around 80k. Not just on the block, but in the whole zip code. Other houses that are being listed now for my offer price have extra bedrooms, bathrooms, etc. He has me nervous. Does any of this make sense? Does anybody have any thoughts or advice here? What "position" is he insinuating? He hasn't elaborated :/ [link] [comments]  |
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