Ashley Sutton Tullio

Way to go Maggie! I love your answer. - Wed Apr 9 2008, 09:22

Bubble boy..it sounds as if you believe some sort of conspiracy is going on. Rather than sit around and be mad about it, why don't you do something to change the direction of this country. Also, if you don't like what is happening, if you don't like the way things are turning out and think America is so terrible then why don't you just leave. Nobody wants to listen to someone with a bad additude complain all the time. I'm sure you've heard the saying...be part of the solution not the problem. - Wed Apr 9 2008, 07:53

Waltsmnky

Case in point a short sale in Chesapeake, listed way way way below everything else in the neighborhood. If a buyer were to come in an offer $20,000, the seller could not accept it because the new loan amount could not satisfy their current mortgage payoff. The sellers are just trying to be done with this home and are selling if for the bare minimu. It is priced $80-$100k under market and buyers are competing for it. Offering $20,000 less would not be advantageous for a buyer that really wants this house that comes with built in equity. - Thu Jan 31 2008, 11:25

In my opinion your Realtor(r) should do a comparative market analysis for you to help you determine price. You can judge by what other similar properties have sold for, the condition of the subject property, how long it's been on the market, and the motivation of the sellers to determine your price. Some properties are already listed so far below market value that the seller simply can not take less. I showed a house a few weeks ago that the seller could not take less because of his payoff amounts, the lender wouldn't allow it. Each property is different and there is no magic formula to go by when making an offer. You have to look at all aspects of the property and your needs. If it doesn't meet your needs, it simply isn't meant to be. If you love it and it is a good investment for you, I am sure that you and the seller can work it out.

Best of luck. - Thu Jan 31 2008, 10:25

Bubble boy,

I have a few things I'd like to say to you. First, you seem to have done more research or be more informed than the average buyer. Not every buyer is or wants to be as informed as you are; they simply want to pick out a house and sign the paperwork. Granted, that may not be the way you make purchase but there is more than one right way to buy a house. I have had clients that have that mindset, they trust me enough to put that control in my hands. Again, there may be more than one right way to buy a house.

I'm sorry that you feel as though all Realtors are uneducated, money hungry, low lifes that just want to take advantage of good people. When the market was going crazy, there were a lot of folks that got their licenses for the wrong reasons. This tougher market is weeding some of those people out. They are the ones that took advantage of people, were always looking for a quick buck, and truly did not care how much the buyer could afford but rather, how much they were approved for. Those are the wrong kinds of agents and even other Realtors do not want them out here treating buyers and seller the way they do.

For some of us though, we really do take pride in our work. In this line of business, repeat and referral business is our bread and butter. You can only get that business if you have done the job right and if the buyer/seller feels you have given them the absolute best service that could be provided. That is how great Realtors stay in business.

You also mentioned in your post that there is a low entry bar to become a Realtor. Where do you get your information? Have you ever been a Realtor or are you referencing agents? Do you know that there is a difference? I'm sure you can do some more research to find out that there is a difference. You can do the research to find out about licensing laws, continuing education, the schooling, accreditations and designations.

It really bothers me when Realtors are grouped with agents and are all condemned for the poor decisions of a few. As I have said before, we are not all created equal so please keep your mass groupings to yourself. I'm not sure what you do but let's just say that everyone that has your job is overpaid and lazy. I'm sure you know a few folks like that but that doesn't necessarily mean that you are. - Wed Apr 9 2008, 07:46

JR I'm with you man!

Mistie--Just for clarification...a buyers agent (selling agent) would not be the agent listing the home. That is the listing agent regardless. Listing agents are hired by the sellers to represent them, buyers agents are hired by buyers. Also, in some cases, listings agents will pass the difference of a commission where no selling agent (buyers agent) is involved so that it is a savings for their client or the buyer. In other cases, since the buyer does not have their own represenation, the listing agent actually takes on some additional responsibility to help get the buyer through the process.

In the perfect world, every transaction would be cut and dry and buyers/sellers would be able to get through things on their own. In the event that things start to go down hill and either party is upset, it is nice to have a Realtor to help put things in perspective and get everyone to the end goal. Whether that is closing or walking away, it is nice to have someone on your side that has gone through the process a few hundred times.

To each their own, whatever you are comfortable with. I am not sure how it is in other states but in Virginia, we are also allowed to do limited representation. This allows us to be hired on an as needed basis and for a flat fee. My company allows this flexibility to allow the client to pick and choose what level of service they need. If they want help writing the contract, negotiations, marketing, etc...you don't always have to pay a percentage; you can just get the answer to a question and the advice you need to move on.

Good luck to Paul, Drew, and Mistie--you are much braver than a lot of folks I have met. - Fri Feb 22 2008, 15:40

Great answer Elvis! Thanks so much for your input, you are 100% correct. - Fri Feb 22 2008, 08:11

Drew,

More power to you if you have the knowledge to feel comfortable handling your own transaction. I have read your posts and I agree with some points and disagree with others. Yes, sometimes the extra wording, drawn out negotiations, more hands in the pot mentality can cause problems. However, some buyers have never bought a home before. Some buyers do not want to make real estate their specialty. They want to continue doing their normal 9-5 job and hire someone to help them. I'm sure that if I really wanted to learn how to do electrical work I could take some classes, get a general basis and start doing my own work. Instead, I think I'll focus on being the best Realtor I can, and let a professional with YEARS of experience do my electrical work.

I also take offense to a comment you made that said "The funniest thing you can do is take the Realtor training class yourself, just don't get your license and you'll know more than 90% of the agents out there. It'll all be fresh in your mind!". Since you are not an agent I am sure you do not know this but all agents licensed in the state of Virginia are required to take continuing education classes every two years. The classes go into Fair Housing, Ethics, Law (which is always changing), Agency, etc. But since you do not have a license, you are not required to know these things. You also are not required to keep up with the most current real estate laws.

You also mentioned something about realtor commissions cutting into the sellers profits and that not being fair. Did anyone make those folks hire a Realtor? Don't the sellers have a choice on what they choose to pay a Realtor? Commissions are not set, they are negotiable between every client and every agent. The sellers know before the sign goes in the yard what they are going to pay both their agent and the buyers agent.

In this market, sellers can not just slap a sign in their yard and expect 10 offers by dinner time. They actually have to spend the time to make sure their home is reaching their target market. They also need to remove themselves emotionally from the home so that they can see it more as a business decision. They may also want someone to deal with the buyer and/or buyers agent, coordinate inspections, surveys, appraisals, closings, and payoffs. People hire professionals for a reason. Because we are professionals, this is our specialty, and we live, breathe, and eat real estate 24 hours a day, 7 days a week.

Please do not group all Realtors together as being snakes, sharks, or stupid. I take great offense to that. I take a lot of pride in my job and in my clients happiness. I go above and beyond to make sure that my clients are happy, that they got the best possible deal out of the home, and that I did my very best for each one of them. I know that not all agents are like that, some only have dollar signs in their eyes. However, we are not all created equal and I would appreciate it if you could refrain from bashing those you do not know.

I have attached an article with some statistics on For Sale By Owners if you'd like some additional education. - Fri Feb 22 2008, 06:52

Rugreen,

What you have referred to with the Realtor working for the seller and the buyers is called dual agency or dual agents. Most agents prefer to work only with one client for each transaction. That is where the Realtor for the seller works only in the sellers best interest and the Buyers Agent works only in the buyers best interest.

As much as it is the listing agents job to get the most money for the home, it is the buyer agents job to get the best price and terms for the buyer. I am an Accredited Buyers Agent in the state of Virginia. I do not do dual agency because I feel that I am not able to give full service to each client. I like to be able to assist my buyers with all the negotiations and share whatever information I have with them.

From your response, I gather that you at one time were burned by at least one agent. Just like in every profession, not ever provider is created equal. There are good agents, there are bad agents. It is up to the consumer to interview agents and find one that they feel will work in their best interests and that they can trust; not an agent that only looks at you with dollar signs in their eyes.

I have worked with many buyers, none of them have paid me. Some of those folks probably could have completed a transaction just fine on their own but they hired me to help guide them and be there should something come up.

I believe someone else before me wrote, why would you not take advantage of a free service that is to your beneift. No one made you work with the agent you worked with. It is up to you to interview each agent and find someone you feel you can trust. - Tue Feb 5 2008, 14:36

If you don't mind me asking, why do not want representation? Have you not met someone that you clicked with and felt as though they would be working in your best interests? Do you think it will cost too much money? Do you think you may be able to get a better deal on your own?

I would like to know so that as a REALTOR(R), I can understand buyers needs and wants better.

I am an Accredited Buyers Represenative in Virginia Beach and pride myself on doing my very best for each client, so any insight you can give would be greatly appreciated.

Best of luck. - Thu Jan 31 2008, 10:29

I agree with Deborah. Real estate is regional not national. Also the Fed just dropped the interest rates again so as long as you can afford it, now may be a good time for you to buy. The rate of appreciation in Virginia Beach has slowed down but it is existent. Military folks also have the opportunity to have a rental property in a few years if they get transferred. With the right property, you can use it as a tax shelter and an investment. It may not appreciate by much in the next few years but over the long term it may pay off. You can always have a tenant pay the mortgage, use it as a tax shelter and then when you need the money, you can take out a second against it or sell it and make a profitable income. It all depends on the property and what you intend to do with it.

Let's say you rent something for $1000 a month for the next 3 years...that would be $36,000 in rent you will have paid out. Wouldn't you rather pay $36,000 over the next 3 years into a home that you own? When you rent somewhere and move out you are not entitled to anything. When you own and pay down the principal, you get to keep whatever the difference in your loan payoff and the sales price....that could be much more than the $36,000 you've paid into it.

In the end, you have to make the best decision for your family no matter where you are stationed.

Best of luck! - Tue Mar 18 2008, 13:15

Jeremy,

I agree with Franks answer. Houses in our market may not be appreciating at the rate they were a few years ago but that does not mean that now is not a good time to buy. Forecasters predict that as our economy improves, the real estate market will as well.

You have to determine what is best for you and your wife. If you can afford to purchase a home you will at least know that besides tax increases, your mortgage will not go up every year, the interest you pay is also tax deductible. My husband is also in the military and I am a Hampton Roads native. For his career track, he will most likely stay in Hampton Roads for many many years.

If and when you do get transferred out of the area, you can sell your home or rent it out. If it has not appreciated enough, you can rent it out until the market improves enough to sell it. No one can tell you what will happen in a few years but you have to make the best decision for you and your family.

My recommendation would be to talk to a reputable lender to determine how much you can afford and then take a look at what is on the market in that price range. If you hire a REALTOr(r) you can even have them do some research to tell you what the market value is right now and based on the rate of appreciation for the area, what it wil be worth in a year or so.

Best wishes. - Thu Jan 31 2008, 11:22

Unfortunately in Virginia, our contracts are not structured to allow for rate caps. They are contingent on financing, but if the lender has approved you for up to $xxxx and the house is within that price range, your financing should move forward.

Also, it is not the sellers responsibility to buy down your mortgage payment or pay your taxes. If the seller choose to do something like this, that would be entirely up to them. Buyers should definitely take advantage of the market and the negotiating power, while at the same time, being able to purchase and afford their home on their own without NEEDING money from the seller to complete the transaction.

Best of luck! - Mon Feb 11 2008, 06:26

Hi Christine,

I agree with the previous posts. You should definitely talk to your Realtor and see if the seller will be willing to help out at all. Do you plan to be in the home for longer than 5 years? Are there any other loan programs that will work out for you and give you a better payment?

In the end, it may be worth it to lose the earnest money deposit and find a house that is within your budget.

Good luck! - Sun Feb 10 2008, 12:38

When a home is up for a short sale, a lot of times the seller/lender have listed the property as low as they can go. If you are financing your loan, your lender can give you a good faith estimate and tell you what to expect for closing costs. My recommendation would be to hire a Realtor(r) (usually at no cost to you) to help guide you through the process. It can be very confusing and it is best to have someone with experience on your side, especially if it is of no cost to you.

Best of luck, - Thu Jan 31 2008, 10:19