I'll try anything to get rid of realtors. They're the worst form of rent seekers, and it requires no real skill or training other than a certificate that I could purchase with a highschool diploma, taking one class, and passing a multiple choice exam.
Are you speaking from experience in the real estate industry?
I'll agree that RE agents ("Realtor" is a trademarked term) are essentially unnecessary for the happy path when a property sale goes smoothly. In that case, they are overpaid secretaries.
But the reason RE agents are their own profession is because when a sale starts to wander off the happy path, there can suddenly be a LOT to know, discuss, and do. A good RE agent will be honest with you if the asking price is ridiculous in either direction. They know all the little local details and laws that are easy for a layperson to miss. They'll help you deal with a difficult buyer/seller. They know where the flood plains are. They know about zoning. They know who to call when the weirdest shit pops up. There are few other areas in life where ignoring (or not seeing) non-obvious red flags can ruin a person or family so completely.
I have had bad RE agents that were uncooperative paper-pushers who kept dropping the ball, and I have had good RE agents that were worth every single penny they earned.
If you want to be mad at something, I suggest looking into the National Association of Realtors. It is essentially the union that all RE agents are a part of, whether they want to be or not. NAR essentially owns the bulk of property listings in the US and heavily gatekeep access to it.
Yes, if every deal went according to plan, you could just use half an hour of attorney time.
For our value add compared to the regular realtor when things go wrong. Our thesis is that because 65% of home buyers use the first realtor they meet, most individuals are getting this "uncooperative paper-pusher who keeps dropping the ball". We can outcompete this average realtor on the quality front.
Thanks for the reminder, I did get surprised by several local laws despite having a realtor familiar with the area. I speak from experience as a buyer who did all the work and indirectly paid a parasite a lot of money to cost me even more money. I need to emphasis that the issue is that I don't have a choice in the matter. In cases where I don't need them, it doesn't matter if they're good or not, they're purely parasitic.
I don't want them. They've inserted themselves in the process against my will.
My realtor was invaluable when I bought a house. He had a lot of valuable guidance on what to look for and what to avoid, as well as advice on how to make our offer stand out in a seller's market. I'm not saying that there aren't realtors who are just parasites, but some do earn their pay. Mine was one such.
Prior to the Aug 17 settlement, Keller Williams said ~65% of home buyers in the US used the first buyer agent that they met.
The quality bar is very low to become a realtor (3 months of online coursework).
Realtor reviews are cooked and completely fake online.
So it is not a big jump to say that the average realtor experience is poor as they are usually driven by a single advertisement or a single Zillow link for most people.
We try to mimic the behavior of the best performing top 1% of realtors and give that experience to all.
Sure but the first real estate agent I met is the one that was most highly recommended by my friends and colleagues, and has stellar online reviews. It wasn't some random person...
My realtor was worthless. I picked the house, picked the inspector, and then just had to find a realtor in the area who wouldn't bumblefuck it up too badly. He still managed to somehow cost a lot of extra money by moving extremely slowly. I don't need or want a realtor but the system is set up to ensure they continue to exist regardless of if they have any value.
The issue is that we don't really have a choice in the matter. In a properly functioning market, you could still have your realtor if you wanted, and I could pretend they don't exist instead of having to help support their lifestyle.
Some are valuable, some do a good job at making themselves seem valuable to you. Our goal is to take what the valuable agents do and make it even better. There are so many places where an agent can add value (search, credits, getting you the best interest rate, doing all the research for you, etc.).
The biggest contribution my realtor made was good negotiation, but even that cannot be confirmed. Why? Because I never spoke to the sellers directly. For all I know, I was their only offer and they were just holding off to see if anything else would come through.
When I sell my current home, the realtor commission would be around $20,000. That's $20,000 cash equity that is taken out of my hands. When I did this simple calculation, that's when beyond the shadow of a doubt, I knew I would not be using a relator -- I don't care how much of a headache it could be. I'm keepin' that $20K.
>the realtor commission would be around $20,000. That's $20,000 cash equity that is taken out of my hands
Not to defend the current real estate industry too much, but if the sellers were not paying $20k for a buyer's agent, the price of the home would likely just be $20k higher. That's an extra $20k that the sellers would get to keep. If they kept the price the same with or without an agent, that would seem to be some pretty irrational behavior. They'd be giving up $20,000 for no reason!
A rational seller is selling for as much as the market will bear, and are only paying transaction costs that they absolutely have to. Again not defending the current system at all- the sellers are the ones who who are paying too much in this case
This is one of the main reasons we started this company: transparency. With our service, you'll soon be able to see all communications and texts with the seller and listing agent.
I've been in your shoes (before I got my license). I always had doubts about what my agent was actually saying on my behalf, and what they were telling me about the seller's position. It often felt like the listing agent would magically respond only after I followed up. That's why we're committed to giving you direct insight into the negotiation process, so you're not left guessing about what's really happening behind the scenes.
This seems like a rhetorical question, because it's as simple as a buyer going to something like Zillow and clicking through houses. Realtors are on their way out.
How does the house get on Zillow? Typically, they get that from the MLS. The way you get a property into the MLS is via Realtor. Without a Realtor, you don't get into the MLS.
I can't even get my house into the MLS without using a Realtor, and I'm currently logged into the MLS database server running updates. ;-)
Definitely. I am going to hire an attorney ($650), property inspector ($500), and title company ($1,200), and that is about it.
I've purchased two homes and I'm confident I can handle the paper work involved. I mean, most of the paper work is the attorney's and title company's anyway. The realtor is basically inserting himself in between those companies and then relaying that information to the client. In my case, my realtor was copied on all communications, but that is it. I was the one producing all the documentation, signing agreements, reading reports, following up on inspections, etc.
And I had one of the top Keller Williams agents in my state. The guy is known by everyone.
I can't make sense of paying someone $20,000 to say, "Let me know if you have any questions about the inspection report"; or to tell me, "I wouldn't buy this. There's moisture in the basement. There's a leak in the ceiling. The patio is not level." etc. I'm knowledgeable enough to see things like this, and if not, my inspector will educate me on it and identify issues.
I've heard people say realtors can point out issues like a leak in the ceiling, like you mentioned, but they're not inspectors and the good ones are quick to admit that they're just offering their untrained opinion. That's good, but I don't know if it's worth $10,000 when for $400 a bonded inspector will look at everything, crawl around in the spider zone, take pictures, and give me specific advice.
Interesting. I wish there were more resources for this stuff. Even though I have a good agent and will continue to use her, I'm always interested in how to DIY things, even big things like real estate.
I'm curious why you're paying for an inspector, though? Wouldn't the buyer want to hire their own inspector? Are you just looking for issues that the buyer might complain about? (My experience is that an inspector will _always_ find things that the buyer can use to negotiate the price down.)
I was under the impression that the title company was also chosen by the buyer (or their agent). Although they generally expect the seller to pay for, well, almost everything.
If the buyer is using an agent, I assume you're not paying the buying agent's 3%, right? I wonder if that would dissuade some buyers.
