Shannon Woodcock

Hello Harry!

Kudos to you for offering the commission to your friend and good to know it turned out well in terms of your reaching an agreement. Clearly from your original question (and subsequent contributions to this thread), you care about this topic and how your friend would feel being offered 1%. And, hey, it was an offer...at the end of the day, that's pretty much what real estate is (sellers offer their real property to the market and buyers make offers to buy)....you made an offer, and it came together; that is great!!

And no problem with Redfin; the more business models, the better. But here's an option for people who don't have a friend in the business.... the local expert in the neighborhood in which you are purchasing (that may be your friend's case, too. I can't tell from the description).

When a consumer calls an agent to list a home, the consumer needs to have a conversation first......ask about the agent's knowledge of neighborhoods (pockets within the neighborhoods), traffic patterns, schools, developments that will soon be breaking ground, price trends, etc. Ask some of the less technical questions: What is the agent's working style, business philosophy, communication system, whether the agent is a member of the community.

However, people seem to prefer computer research with regards to real estate....Redfin has played heavily into the misconception that real estate through the portal of a computer is where it is "at". Certainly the computer has revolutionized untold aspects of the field of real estate. But a well-thought out set of questions and setting appointments with 3 agents to interview them is a fantastic way to invest in the real estate buying or selling process.

Setting a commission that you are willing to pay is fine, and pair it with going to bat for yourself in terms of spending that commission (be it 1% or 10%) in the best possible manner. Making a deliberate, educated choice about who will help you make one of the biggest investments in your life is well worth the effort. The local expert, a friend in real estate, an agent that a friend or family member trusts, all are great to include in your interviews.

Harry, by choosing your friend, you stood up for having someone whom you like and respect navigate this huge investment with you and paying a commission that you are comfortable with. You created a total win-win situation! - Sat Oct 4 2008, 00:29

My answer may be a bit polarizing to those who see real estate as only an investment, but I would not put the 'investment' component on anywhere near the same plane as the 'starting a family' component. Of course everyone knows that for most folks, the home they purchase is their biggest investment. And, yes, you certainly want to look at re-sale values (schools, neighborhood, functionality, etc.).

However, when you think of your plan to "start a family soon", let this be your best guide...see yourself there 1, 3, 6 years down the road.....taking walks throughout the community...playdates down the street.....getting a few quiet moments away to walk to the coffee shop. Do some research into the schools and look at them from other standpoints that may be of interest to you: teacher student ratio, music/art programs?, teaching philosophy, etc.

I can almost guarantee that those observations you have made about the 'junker cars' and the 'run down homes' will become like grains of sand chaffing you as time goes on. In short: You've Got to Love Where You Live!! - Sun Aug 10 2008, 20:10

K,

As usual great, sage advice from the previous folks who have answered! I would echo the others who have said get out there and look at the competition. Have your agent show you the direct competition and go through those houses (possibly with a good friend who will give you an honest opinion) and really put yourself in the buyer's shoes. Daniel also makes a great point about staging. A completely vacant house can look cold and desperate as opposed to spectatularly uncluttered! I find when I show vacant homes, many of my clients are busy trying ot figure out "what happened?" they want to know what unfortunate turn of events caused the house to be 'abandoned'. And then the talk may turn to how desperate the sellers may be for a low ball offer.

None of this may apply to you, but just be certain that you have your lights on, some nice staging, and if after looking at the comparables with your agent, you truly see that the others have new kitchens/baths or other more meaningful updating than yours....it's time for a price drop.

P.S. The rule of thumb is that after 10-12 showings you should have an offer even in a down market . Ask your agent where you fall in that spectrum? He/ she should know how many true showings vs. just previewing agents have been through. Good Luck!! - Sun Aug 10 2008, 19:48