I'll bet you thought it.Maybe you've just felt that knot in your stomach.
Here you are thinking of selling your house and wondering how will you get through the process without an agent. They are commonly heard spouting how they protect you from "legal pitfalls".
Last I checked a licensed agent was just that. They have not been to law school. Neither have you. Your lawyer has.
In any real estate transaction your lawyer is there to work on your behalf. They are the ones there to question the contract and ensure that your rights are covered. With that said when you are negotiating the sale you should never sign a contract with a buyer (or seller if you are buying) without first having it reviewed by your lawyer.
Negotiate, YES. Agree on price, conditions, inclusions and closings dates, YES. Write it all down on your Offer Maker, YES. Sign an Offer to Purchase, NOT UNTIL YOU ASK YOUR LAWYER!
Even the agent in this cheesy video thinks it's best!!!
M
Posts
8 comments:
No question about it, a lawyer is your "best friend" in the real estate transaction. The "Best Practice" for private sellers and buyers alike is to have the offer agreement reviewed PRIOR to signing a legally binding document!
Agents not only falsely portray themselves as "legal experts", but they also like to pretend they are bankers who "pre-approve" buyers, or even 'home inspectors' who will guarantee buyers a good product. Agents are marketers, and that IS ALL. And, not even very good ones at that (ever see the MLS website? What a joke). The public is waking to the fact that agents simply ARE NOT NEEDED to successfully sell a house. In fact, with their non-defensible commissions, they can only HINDER a sale. My guess is most agents are qualified as Wal-Mart greeters, or fast food cashiers, AT BEST. Calling them Joe Schmos is too generous.
The term "Joe Schmoe" is used in context to average and ordinary. See the following definition from Wikipedia, the free encyclopedia - http://en.wikipedia.org/wiki/Joe_Schmoe
Joe Shmoe (also spelled Joe Schmoe or Joe Schmo) is one of the most commonly used fictional names in American English. It is used to identify the typical, everyday person who does not have any special status, frequently in contrast to some group. Adding a “Shm” to the beginning of a word is meant to diminish, negate, or dismiss an argument (for instance, “rain, shmain, we’ve got a game to play”). This process was adapted in English from the use of the “Shm” prefix, in Yiddish to dismiss something; as in fancy “shmancy”.
Who's marketing what here?
You charge services *starting at $699 for the "base package" and move up from there. Your elite package starts at $1,499.
Your services are significantly less than most agents, you just market yourself in a different way and charge a slightly lower fee.
You shouldn't classify an entire profession as "Joe Schmoes" who are not smart enough to help people, What education do you and your teams have? Do you have a law degree? Years of experience in the field?
Count the number of hours that the average seller must put in to market, manage and show the home themselves in private sales. Put a cash value number on those hours as if it was a paying job, and in most cases it probably more than exceeds a normal Realtor fee.
Besides which, having to use a lawyer more extensively means more lawyer fees.
Where are the savings?
Thank you, I appreciate your comments.
Let's break them down so I can answer each of your questions directly.
1-Who's marketing what here?
You charge services *starting at $699 for the "base package" and move up from there. Your elite package starts at $1,499.
Your services are significantly less than most agents, you just market yourself in a different way and charge a slightly lower fee.
You are absolutely right we charge significantly less than Real Estate agents. As you mentioned our Elite package is $1499. On a $300,000 house with an agent charging 5% the commissions would be $15,000. If you feel that 10% of the cost is "slightly lower" than I will agree with your statement. I am not sure what your financial situation is like but I sure would prefer spending some time on selling my own house and keeping that money to help send my kids to college or buy my wife a car.
2- You shouldn't classify an entire profession as "Joe Schmoes" who are not smart enough to help people
The term "Joe Schmoe" (as stated in my previous response to Mike's comment) is meant as "ordinary" or "average". I believe that if a home owner is going to give up $15,000 they should be getting better than "ordinary" or "average" service.
3-What education do you and your teams have? Do you have a law degree? Years of experience in the field?
Our team is made up of a group of highly dedicated Private Sale Professionals(TM). No we do not have law degrees, hence the reason for this blog post telling people to seek advice from legal counsel. We have been operating in this area for 3 years and as a company for 11.
4-Count the number of hours that the average seller must put in to market, manage and show the home themselves in private sales. Put a cash value number on those hours as if it was a paying job, and in most cases it probably more than exceeds a normal Realtor fee.
We do the marketing so they have already put a value on that so we need not include that in this equation. So let's say a home owner is on the market for 3 months (longer than the average) and they do an open house every week (2 hours x 12 = 24 hours) and they do an average of 3 showings a week on top of the O/H (3 hours x 12 = 36 hours). Everything else is the same as dealing with an agent as the up keep of the house is always done by the home owner. We are talking about 60 hours in total. I am even going to throw an extra 15 hours in for an agent's "extra effort" they may put in, so 75 hours. Let's take $15,000 less $1,500 (PG marketing fee) and we have $13,500. Divide that by 75 hours and we are at $180 per hour. Not sure where you work but last time I checked not too many jobs were paying that kind of money.
5- Besides which, having to use a lawyer more extensively means more lawyer fees.
We deal with a few lawyers here in Waterloo Wellington and each of them have told us that to draw up a cookie cutter offer does not take very much time. As a matter of fact they prefer it as they can draft it to their specifications as opposed to going through and crossing off numerous items in someone else's agreement. They do not charge extra for this service.
So Anonymous I sure hope I have answered your question as to "Where are the savings?".
With respect Anonymous:
Do you have a law degree as well as a license to sell real estate?
In regards to #4:
Have you considered that the "Time" for the showings for a home seller using a real estate agent is actually the home owners "time" as well. They have to vacate the home and drive around the neighbourhood while their home is being shown? Hardly a convenience. Sure, some showings will happen while the sellers are at work, but not always.
So Mike, I think the hours are way beyond generous as the home seller is still putting in some time as they have to leave the house.
Here is a great example of the term "Joe Schmoe"
That was certainly not my experience with private sales!
If you have no problem writing a solid contract (even with the program and a lawyer's review, it is quite difficult) or have the time to do things entirely yourself-- then private sales is for you. If you don't-- good luck!
Post a Comment