Mike Ford

with this much time passed silva, it's time to take a step back and start over.

once you determine if competing properties are selling you need to take a dispassionate look at what the problem is. Something is going on on your listing that we’re not seeing.

We need to have a hard look at the location, décor, ease of showing, price, commission offered to buyers agents, your agents ability to make the deal attractive to buyers and their agents…EVERYTHING. The issue of “finance-ability” is one you need to visit as well. The lenders have taken a new stance here in California of taking NO risks on buyers OR properties.

You need to shoot for the common denominators and be sure that the curb appeal is strong, the price is right, and the home is easy to show and worth the agents time. If there are flaws they need to be acknowledged and compensated for.

Internet presence is important. There are a million places to be found on the internet but realtor dot com is place number one regardless of what anyone else might tell you. After that there are all the rest of them…trulia, zillow, googlebase, etc and all are worth the effort to get them working for you. The topic of what works in the new world of real estate is a hot one. The days of newspaper ads as a marketing outlet are long passed.

an auction is not advised. They have too many moving parts and no agent I know will get involved as they are so far removed from the commonplace that they are a liability cesspool. - Wed Sep 3 2008, 17:36

sounds like you're working this file as hard as your broker!

we all appreciate that you have checked back in to respond to the postings...it sometimes seems that we are talking only amongst ourselves. - Mon Jun 30 2008, 12:16

that's the $64,000 question these days! first things first have your broker do a new CMA. see what HAS sold and reconcile that to your property.

basics are;

do you have it on lockbox?
+is it priced right? overpriced will kill you and make the competition look sweeter.
+ does it show well? disregarding furnishings and staging, an empty home magnifies flaws like tatty carpet, smudges on paint and such
+ does your listing have good pictures. digital cameras can be had for $100. there's NO excuse for not maxing out the pics on a listing. every agent can tell you about a listing they've seen recently with no pics...even if it's just a shot of the front.
+ are you paying to have the yard cared for regularly...twice a month is not enough in the spring and summer...and do it on thursday
+ at your price point it will help to offer with closing cost assistance or rate buydowns.
+ is your agent offering a full 3% commission. we all like paydays and many agents have a pattern of commisson rebates for their buyers...more commish means more rebates

hope this helps...remember that sold is the only real data you want to see.

aloha, mike - Thu Jun 26 2008, 16:20

you don't give us any numbers to work with but your benefit is unlikely to be enough for the 92024 zip code. i did a search a minute ago and found 3 condos priced below $400, with only 1 of those priced below $339k.

in addition to the section 8 plan you definitely should contact the city of carlsbad as there are more and different programs there that are related to their affordable housing requirements that they impose on developers. carlsbad has had far more residential development in the last five years, including multi-family. encinitas has not been as diligent at getting actual units out of their affordable housing programs. like many cities round here they allow builders to make cash payments in lieu of finished housing.

renting IS cheaper. assuming you were to find a home you liked for $250k the combined monthly payment will be $1916 @ 6.5%. and assuming no down payment. that same rental will run you about $1200 in this area and you have no maintenance expenses. - Wed Sep 3 2008, 07:29

oops, i reread your question and realized that you may have a renter in a home that you financed previously with owner occ terms. if that's the case you have little to worry about as long as you "keep in touch by check". i've never heard of a loan called for not being owner occupied.

the issue may arise if they have to do a loan modification. the mortgage guys here can advise on that. there are lots of 3/1, 5/1 and 7/1 ARM's that are going to adjust... - Sun Aug 10 2008, 10:45

yes. they will be looking at your loan application and reconciling that with your credit report, tax returns and other supporting documentation like the addresses on bank statements. the days of lying on loan apps are over.

you use the term "mortgage policy". i don't recognize that term. if you are re-fying they will probably figure out whats what.

if you are purchasing a first home they will have to rely on your statement that you will be residing in the home. - Sun Aug 10 2008, 10:38

this takes us back to the early days of this thread. the issue of commission savings has far too many variables to have a set response. if the proposed sales price is $1 million it is certainly worth the effort to locate a broker whose business plan is tailored to allow them to prosper on a 1 or 2% commission AND to make the buyers side commission a term of that listing contract. if we're taking about an $85,000 condo the savings start to lose significance in the big picture. reduced commissions are not the domain of weak agents, they are the domain of competitors and sharpeners of business plans.

i will bet you dollars to donuts that any brokerage going under now is going out due to sharpy reduced volume, not the commission structure they practiced. this is business 101...sell 1/3 of the units you did last year and your income gets hammered even if you raise the commissions by a full point. the nature of brokerage is that there are only so many variable costs that you can alter. it is a recurring theme in all industries that many companies neglect to practice expense control until it is too late. as individual

hot pink? burning it down? the snarky comments reflect poorly on the trade. and will those who "thumbs downed" nj home's question please slap yourselves on the back of the head for me. - Fri Aug 8 2008, 11:50

so, nj home, after all the back and forth...can you report back and tell us what the result of your inquiry was with your broker? and let us know what sort of listing agreement you decided was best for you.

i think it's important that these threads have some original poster reportage.

thanks. - Tue Jul 29 2008, 16:53

holy cow Frimann...decaf! your excellent message is lost in the bluster.

that said i have to agree with your remark that Lori Alden is wrong. to compare a realtor to a roofer tells me she knows nothing about either. Her advice might sound good but my experience in trying to assist people in the fashion that Alden proposes is that 90% of people want to save commission dollars but they are NOT WILLING or DO NOT HAVE THE TIME to do what is required to do so. they are not diligent enough, not persistent enough, or not sophisticated enough. most are not capable of dealing in "contract language", meaning that they just don't have it in 'em to deal in the world of written demands and specific language. Some are not equipped from a simple business equipment standpoint. of course some do, but not nearly as many as you might think. While I think that most realtors will overstate the chances of lawsuits, I will venture to say that two unrepresented laymen will find one far sooner that a couple of agents. Or one agent using a battery of our industry forms…while there seems to be a trend toward paper, we all know that every additional page in every form we use comes straight from some transaction that blew up and cost someone a pile of money. For a quick look at a FISBO program I spent a lot of money and time on have a look at the link below. I have ceased offering the service to sellers without experience due to the change in the market that has made even the most common sale an exercise in patience and torment. Further, most sellers and buyers are also without skills in the negotiating department…just as freshly minted agents are. It’s an acquired skill and it only comes with experience to know where to dig in and where to bend. We agents learn that transactions have a life of their own and experience alone helps us know which hills are ones we want to die on.

I agree as well that a seller looking to save on commission dollars is generally advised to find an independent agent or broker, they simply have more room to move while negotiating commissions and service options. My prior response touched on this as regards National Ad Funds, and broker splits. I will say though that there are franchises that have agent splits far higher now than even three or four years ago. If Ms. Alden thinks she can reconfigure the structure of the real estate industry…she will be in good company as many have tried before her and failed. Myself included.

Too many agents circling the block...always have been. that's a function of low barriers to entry. call a legislator...90% of the agents here will support you in your quest to up the ante for getting and staying licensed.

This leaves us back where we started…there are many ways to save commission dollars but they take time and effort on the clients part. For those who do the self examination to assess their suitability for the task there are many excellent options as relayed in the posts that preceded this one. - Thu Jul 3 2008, 08:15

well this sure did turn snarky quick...

to answer your question nj home, commissions can be negotiated to negligible amounts. if you are will willing to do the work of a listing agent you can easily find a discounter who will get you in the MLS. the trade call this "entry only" or "limited service" listings. this is an option that does work well for sellers who are sophisticated enough to deal with our business on our terms. Such arrangements are simply variations on the Open Listing that was common many decades ago but rare these days.

an important point to keep in mind is that while you, the seller, are paying one commission the likelihood is that whoever list the home will be sharing commissions with a cooperating agent by way of the local MLS. the vast majority of sales go down this way, the MLS is a very powerful tool. be sure to cover with your agent the issue of how much the buyers agent will earn. this is no time to be cheaping out on the folks who have the buyers and their checkbooks in their cars. for example, I currently have a home for sale in Encinitas Ranch. the price tag is $949k...i have a 4% commission on it. it is priced below market.

there are any number of companies out there that are very willing to consult with you and craft a commission structure that works for you. a good place to start is a local independent broker who does not have to share commissions with anyone. many of the agents who affiliate with the franchise companies don't have a lot of room to move as regards commissions. They have national advertising funds to chip in to, and sponsoring brokers who sometimes have per deal minimums. If you do decide that a national company is your preference, ask your agent what their split is with their…I know some agents who have very generous splits and others who are on 55-60’s. if they are only getting a bit more than half of one side of the deal they aren’t taking much of the pie. as an aside, i still don't think that a national company really does matter for the largest share of sales...real estate is a local knowledge trade.

you might want to ask a broker about whether they will reduce commissions in the instance that there's no co-op agent to be paid...a rare event but one you can treat.

If you put a combination lock on your home you might as well leave the door open…they are not secure. The lockboxes we use are a giant pain in the neck but they keep a complete entry log and NO ONE gets in without being well known to the local association of realtors

you don't mention the price point at which you will be coming to market...there's a threshold below which i think it just doesn't matter...saving a point or a point and a half ($3,000 on a $200k sale) doesn't really change the complexion of the deal after you look at it in it's totality. at $750k...you bet!

It might help you to scour this site for the thread on Duffy realty in Georgia that wound around a year ago…I recal that it covered this topic.

Hope this helps. - Fri Jun 27 2008, 07:57

negotiate them down to 10%. no wait...12...okay 9.

don't forget to chisel your insurance agent, and your chiropractor, and your financial planner,and your house cleaners, and the guy who shampoos your carpets...i keed, i keed. thanks for the belly laugh...asking this crew to cut their own throats...you're sure to be popular! - Thu Jun 26 2008, 16:42

michelle,

thank you for checking back in and letting us know what you decided to do. we rarely get that courtesy.

i am sure you will agree, after the dust settles, that it's nice to have someone acting as a second set of eyes. that set will also know exactly how to compose the offer to get you the rebate and keep everything on the up and up.

aloha, mike - Thu Aug 7 2008, 14:53

steve, your suggestion is a good one but it does not apply to the question of whether the sellers agent should be the source of your credit.

only the buyers agent can credit you a buyers agent commission...until there is a buyers agent there is no buyers agent commission. What you are suggesting is just a closing cost allowance which is not novel or anything new...we've been using credits to grease the deal for years. Most agents will not remember the VA no-no's we used to be able to do here in san diego.

in related matters, the issue wil always arise here in the states as to the amount of the credit...the lenders have limits to what they allow. any allowances in escrow are subject to lender guidelines...allowances outside of escrow are the domain of crooked lenders and agents. - Tue Mar 4 2008, 16:43

i am really enjoying this thread!

while i wouldn't compare myself to a surgeon i am very comforable comparing myself to an attorney. If you went to court and informed a judge you would be representing yourself there would be a period of silence followed by the strong advice of the court that you reconsider that choice and they might even require you to have co-counsel at hand to make sure that they didn't have to do the work of defending yourself for you.

the fact that you are unrepresented, and desiring to represent yourself, makes anyone in the trade for more than a few months GROAN. is the sellers agent expected to give you guidance, forms, schedule your inpections, manage your file and see the thing to a timely close, hold your hand in any way? i am amazed that you'd expect anyone to deliver their services without compensation.

Can you imagine how they'd feel if the deal went sour and they were determined to have taken on any liability for having done so? Gratuitous Agent is a term we all have heard...none of us wants to be the chump who both worked for nothing AND gets named by both attorneys should the thing get to that. - Tue Mar 4 2008, 12:14

what makes you think the agent has a six percent listing fee? and why do you care? you're not hiring an agent by your own statement.

ignore the commissions and just make the offer you want...it kills me that buyers get all locked up over 2-3%. in this market...if you can't negotiate that much off a home in you should stick to having an agent do your bidding.

further, if the 2-3% makes this a go or no go for you...you should not be buying real estate. if your margin of error is that thin you should reconsider the deal.

I get the occassional request for rebates such as you propose. I advise the person asking that the property is in the MLS for a reason...BUT I am ONLY offering commissions to other licensees to bring their clients to the deal. The commission is paid by the seller to the Listing agent...the listing agent decides what the cooperating agent gets...not the seller. You make a common mistake of misunderstanding the nature of a Listing Agreement...and as an unrepresented buyer you are not a party to my contract any more than the cooperating agent is.

perhaps one of the two agents that you liked in your past dealings will step in for you and handle this deal...or do you want something for nothing...an agent paid by the seller to work for them for 3% and work for you for 0%...you're funny! i see liability writ large in your post. - Mon Mar 3 2008, 19:02