jcgray

As much as I appreciate everyones input, when speaking about fees it is important to remember Anti-Trust laws and the appearance of price fixing, in any forum. Although I work in a totally different market sector of the real estate industry and which is not commission based, as a real estate licensee I must demure from further contributions to this forum. - Mon Sep 1 2008, 22:55

I can't resist the opportunity to stir the pot up a little bit.

When I seek medical assistance, I want to know that my medical provider has the credentials and experience to provide the optimal service that is required. The same is true of my attorney, chiropractor, dentist, and every other professional who's expertize I seek. I want to know that their major in college pertains to their profession and area of specialty, and the same is true of the professional who tends to my real estate needs. At my firm, each of us has a four-year degree in either law or real estate. I certainly wouldn't go to a brain surgeon who's degree was in art or horticulture, why would I settle for anything less in any of the other professions. As a result, the professionals at my firm have the credentials and qualifications that is deserving of the income they earn. This should stir the pot up a bit!

But then again, we work in a specialized field in corporate real estate and don't sell homes. However, I do believe in raising the bar in the real estate profession and its specialized markets. Historically, real estate was sold on a commission basis and many who where the least qualified went from rags to riches and in many instances the public suffered greatly; hence licensing requirements were instituted. In the spirit of American excellence and based upon the complexities of today's culture, its time to expect more from those in the real estate field to met the same equivalent standards their counterparts in other professional fields must possess.

What relationship does this opinion have to the question on deserving a percentage commission? If I were to employ a residential real estate licensee to sell my home or represent me as a home buyer, they have the right to earn the big bucks if they have done everything that well-qualifies them to earn the big bucks based upon their related academic achievements, professional and specialized trainings, and the personal expertize to represent me in one of my biggest financial and legal transactions. Just like my doctor and lawyer, who jumped through the hoops to qualify themselves to earn the big bucks that they do. Perhaps we should pay them on a percentage commission basis? - Thu Aug 28 2008, 20:27

Based upon the information provided in the question, too much is left for conjecture on any professionals part. I don't know of anyone who "lost" their property at an auction, unless they were in foreclosure. However, this isn't stated in the question, so that is simply an assumption.

In real estate, everything needs to be in writing. Therefore, I would refer you back to the signed contract you have, and which I hope you have, with the other party concerning forfeiture, refund, or entitlement of any earnest money deposited. Its all in the written word.

Good luck. - Thu Aug 28 2008, 20:41

List price and sold price can represent many different scenarios.

Is this an "arms-length" transaction?

Did the eventual sales price reflect any added costs that were included in the sales price? Perhaps things such as the seller paying points, closing costs, lender required repairs or buyer desired repairs, or a host of other possible items may add to a closing sales price.

The reason for the home being listed for sale may also influence the eventual sold price. Perhaps the seller(s) are facing foreclosure and are hoping to salvage their initial investment.

Perhaps a job change and transfer to another area of town or out of town requires a quick sale, therefore the willingness of the seller to accept low ball bids could be another factor.

Divorce, loss of a spouse or partner, or any other factors that might influence a sellers willingness or necessity to make a quick sale may influence a seller to accept a low ball bid. So, its always nice to know the motive behind the sale and to understand a bit about the seller(s).

Then again, the seller may view their property as being worth far more than it actually is in today's market. Ask your real estate professional to prepare a Comparative Market Analysis and make sure the comparable properties used in this report are actually comparable to the subject property and is not just a clumsy neighborhood survey of all properties that are listed, have a pending offer, have expired and never sold, and sold properties. Facts can serve as strength, and vice-versa depending upon how the seller views reality.

Strong negotiation skills used by your real estate professional may also influence the final sales price. If the offer is rejected with no counter, resubmit a new offer if you desire. But then again, you may run the risk of offending the seller and therefore prejudice their view of you as a buyer. It all depends upon your investment criteria and willingness to accept rejection - or worse, acceptance!

Best of luck,
J. Christin - Sat Aug 16 2008, 23:57

If you will feel more comfortable having an attorney review everything prior to submitting an offer, contact the Oregon State Bar for a referral. Be wary of those who attempt to persuade you otherwise, after all - it's your dollar, your business transaction; not to mention an ethical issue for licensed professionals to suggest otherwise.

http://www.osbar.org/

J.Christin - Sat Aug 16 2008, 23:27

Here are a few suggestions:

1. Go in person to your jurisdiction's Zoning or Community Development Office. Ask the land use professional at the counter if your proposed project requires any zoning approvals, building permits, and to make sure that any set-back requirements are grandfathered. Make sure you get it in writing!

2. If the counter person won't do that, ask for their card and send them an email outlining the points of their conversation with you. Be certain to close your email with a sentence that asks them to reply back with any corrections, subtractions, or additions that they may believe are needed.

3. Same thing at the Building Permit counter. Make sure if an Electrical Permit will be required. Make sure it in writing. Otherwise, you home insurance may not have to pay for any damages caused due to work performed. Always think "liability."

4. Viewing information on the jurisdictions website is nice, but can often be incorrect. Codes and other requirements change overnight and may not be online yet. It's your responsibility to collect the information, not theirs.

5. Get a Home Inspector, Engineer, or other appropriate professional to sign off on any plans or completed work. Always think "liability."

6. Enjoy the completed work for years to come.

J. Christin - Sat Aug 16 2008, 23:16