larry@analog.UUCP (Larry Rolla ) (09/06/84)
I am in the process of looking for a new home and would like to know the advantages and disadvantages of using a realtor. Some of the questions I have are: Is their a way to write off the commission that a realtor would get if I decide not to use one? What is the normal cut that a realtor gets? Who pays the cut in the long run? Should I expect to get a lower price by not using a realtor? Thanks Yrral
ken@ihuxq.UUCP (ken perlow) (09/07/84)
-- >> I am in the process of looking for a new home and would like to know the >> advantages and disadvantages of using a realtor. Some of the questions I >> have are: >> Is their a way to write off the commission that a realtor would get if I >> decide not to use one? No. If there's already one realtor involved, the whole commission goes to him/her. If you get one (different from the seller's), they split the commission. IMPORTANT NOTE: Even if you are working with your own realtor, this person is still legally an agent of the seller, and honor-bound to work in that person's best interest, not yours! >> What is the normal cut that a realtor gets? 7% last I checked. >> Who pays the cut in the long run? Clearly you do. Sellers figure a price based on what they want to get out of the deal, so the realtor's commission is tacked on. A good realtor, however, won't list a house at a price he or she believes to be unreasonable. But in that case, the seller has been convinced to settle for less. >> Should I expect to get a lower price by not using a realtor? Of course. And there's less sales hype too. But you should go to a realtor first to get a feel for the market. They'll chauffeur you around in their fancy cars, take you to see any place you want, and you're under no obligation to make an offer. Indeed, the realtor (who, remember, is *NOT* working for you) is duty-bound to present to the seller *ANY* offer you make for *ANY* price with *ANY* conditions you want. It's actually a good idea to make a few outrageously low offers for practice. And who knows? ... There is also a middle ground. In most states, in order to buy and sell property for somebody else, you have to take a test and get a license. This makes you a "real estate agent." A "realtor" (TM!) is a real estate agent who belongs to the Board of Realtors. This costs no small sum, but provides said member with the weekly Multiple Listing Service (MLS) book that has all the property listings in the area and a lot of neat statistics about average prices and time on the market. A non-realtor real estate agent can charge a flat fee for the service, or some other non-standard commission. They're not as easy to find as realtors, but might be worth seeking out. Don't ask a realtor to point you to one, of course--they can always undercut the realtors, who therefore hate them with a vengeance. How do I know this stuff? I spent much of the 70's working in co-operative housing, buying real estate with little or no money for fellow hippies in the same condition. My experience is limited to Wisconsin, though. I believe other states have quite similar real estate laws. -- *** *** JE MAINTIENDRAI ***** ***** ****** ****** 07 Sep 84 [21 Fructidor An CXCII] ken perlow ***** ***** (312)979-7188 ** ** ** ** ..ihnp4!ihuxq!ken *** ***
joe@petsd.UUCP (Joe Orost) (09/07/84)
<> >I am in the process of looking for a new home and would like to know the >advantages and disadvantages of using a realtor. Some of the questions I >have are: > >Is their a way to write off the commission that a realtor would get if I >decide not to use one? NO >What is the normal cut that a realtor gets? 7% split 4 ways: listing salesperson listing salseperson's broker selling salesperson selling salesperson's broker >Who pays the cut in the long run? The seller pays the entire commission. >Should I expect to get a lower price by not using a realtor? It is possible (but illegal) that the seller will raise his ASKING price to try to cover the commission, but you can always offer less, and usually (unless the offer is very low) it will be accepted by the seller. The listing salesperson has the experience to know what a house is worth and will not list it at a price that is inflated. (The commission is only earned when the house actually sells - at the time of closing.) Also, the realtor has access to all the local listings, usually on a multiple listing service which he/she pays much to belong to. You will have to do a lot of legwork to keep up with that database. regards, joe -- Full-Name: Joseph M. Orost UUCP: ..!{decvax,ucbvax,ihnp4}!vax135!petsd!joe US Mail: MS 313; Perkin-Elmer; 106 Apple St; Tinton Falls, NJ 07724 Phone: (201) 870-5844