Snmr

Totally agree with "Jed Lane Broker GRI" below. I would have been more than happy to skip the research, data collection and analysis portion because its time consuming and not worth it. the 2.5% commission is not a big deal for me if somebody took care of the whole work in the right way. BUT after my experiences with many realtors i was so shocked to find thier incompetence that i decided to not take chances with the biggest big ticket item. It was not about the commission but its was more because of my paranoia that i might get screwed. I had to do my own research and refrain from buying in 2005 summer when all the realtors where screaming that it was a good time to buy.That was the turning point. I realized that everybody is on thier OWN in this country !. When it comes to big tikcet items like these , its better to get informed yourself than rely in somebody else. nobody will look after you.I don't believe in all this B.S about realtors taking care of thier clients.How many realtors told thier clients in 2005 that they should hold thier Buying ?? if you are a realtor : ask yourself this question. they will always come up with a reason to Buy. "if you like the house Buy it B.S" . The whole Realtor Commuinity failed in US in protecting the Home Buyers interest in the current housing mess.I don't recall doctors, lawyers or any other service community failing so miserably. after all this mess, I figured out that i am on my own and i have to do my own research. Then i thought that when i am doing this myself why should pay somebody else.thier is no substitute for Knowledge. Even if you go with a realtor atleast get informed.


Cheers !! - Sun Jul 6 2008, 11:28

Hi Ali Moein,

My 20K was guaranteed. With you it would have been rolling the dice ;-) - Thu Jul 3 2008, 15:04

I finally closed on a 3 year old home in an excellent school district yesterday Got commitment in writing to get my 2.5% comission back and i agreed to give my realtor $4000. He was more than happy to get $4000 for doing just the paperwork. I did a Comp and i calculated the i got the house for 50K less than same exact home sold 2 weeks back on the same street with same upgrades,same age, same floorplan and same lot size. when it comes to savings, small things really do add up. I saved 20K on commissions, and negotiated the price by 30K more. BTW , i am quoting sale price in both the cases and not asking prices.
I am an engineer and have a masters degree. most Bay area residents are smart enough to do thier own analysis and search now days. The only thing they need is a guy to do the paperwork.
this is what i did for my search:
1) decided on a location to buy the house based on
- Good schools.Home should have enough margin from school boundaries not to get affected by future boundary changes. look for good school District rather than just good school.
- Good demographics - High paid , financially conservative people who didn't overstreach during the bubble. Also kind of people whose population is increasing in bay area rather than decreasing. look at bay area demographic stats.
- Low crime
- Good nieghboorhood ( look at the cars parked outside to figure this out)

2) Went to open house myself and looked for standard stuff
- avoid homes Close to Roads, facing a T junction ( considered bad in many cultures), wierd backyards, structural problems ..etc
- floorplan should be free flowing , lots of ventilation and light..etc
- Newer Homes so that there are not many hidden issues.

3) Went to a similar home listed nearby and negotiated the price to a point where i walked away.
This is technique to find out how low somebody can go in the current market for a similar house you are looking for.this is the only way to find what prospective buyers are offering lately.

4) when i found my dream house , i knew the price i want it for. Called an agent and negotiated with him that i'll be offering him $4000 and will be taking my 2.5% commission. he was happy as he was doing nothing except paperwork.
5) I carefully looked at the offer letter myself and checked for all contingencies ..etc , emailed it to experienced friends to get second opinion. also looked at disclosures the same way.My realtor sent the offer, negotiated the price and got accepted.

I hope this helps.

Cheers ! - Thu Jul 3 2008, 12:14

Nice to hear from so many people.
I noticed that few realtors were courteous enough to reply objectively. Others were plain rude and bitter.
I can understand that the market is tough now and the last thing you want to see is someone asking for a commission back. THIS IS A FREE MARKET. I am just asking if somebody is willing to do a service for a price. I am not forcing anybody to do the service. I have already been contacted by 4 agents. Don;t give the B.S of "what you pay is what you get". ultimately price is all about demand and supply. There are too many realtors in bay area " in this market " who are more than willing to do a decent job for 1% commision.
thanks to all the folks who gave an objective reply . As for others, please keep your biased bitter opinion to yourself and change your profession. real estate commisions are heading to 1% or less for atleast next ten years. thank god for the internet !
Paula : the way you are talking reminds me of fired auto industry workers who were crying foul when their jobs got outsourced to cheaper countries. They too say the same thing ...don't outsource because what you pay is what you get. - Tue Jul 1 2008, 00:37

I signed up on redfin and am going to get 2% back. I have done all my homework and the only thing left is the offer. 90% of the time, realtors i met were knowing less that what i knew about the neighboorhood, prices, schools, proposed school district, house construction...etc. why should i pay somebody so much money for doing nothing. statistically i think 90% of the people are paying for nothing. I know there are the rest 10% who are worth paying but its very difficult to find them. the last real estate boom diluted the quality so much.every tom dick and harry started becoming agent during the boom. - Mon Jun 30 2008, 18:24