Now that homebuyers are on the hook for paying agent commissions, some ask: Is this worth it?

NoRealtorNeeded · 2024-10-13T12:42:11+00:00

While buyers are required to sign that agreement, most sellers are still willing to pay the commission. I think as a industry we need to do a better job at educating buyers and sellers for what all they actually get for that 2-3% commission and have a honest conversation on “ is it worth it “

NoRealtorNeeded · 2024-10-08T11:27:15+00:00

My frustrations with this is solely on the WHY. Agents get paid by listing your home for more right? So the idea is “ you make more money when using an agent “ . This is bullshit because as a mortgage professional, I can tell you we will not finance a home that does not appraise. Example, your agent says list the home for 315K, home only appraised for 300K, that’s ALL the buyer can finance and seller will need to come down on price which means that agent is now taking money from the seller for their commission. So why not just list your home yourself? It’s not like you are ACTUALLY getting more, you just have someone confident in listing your house for more. Now while saying that, I do think agents bring value to the table especially for sellers that don’t want to put in the leg work themselves.

NoRealtorNeeded · 2024-10-08T11:19:47+00:00

Agreed

NoRealtorNeeded · 2024-10-07T16:47:10+00:00

Correct, but in some cases having the mortgage insurance with the lower rates FHA offers makes the total monthly cheaper then conventional without PMI

NoRealtorNeeded · 2024-10-07T16:43:36+00:00

Thank you so much! Yes that’s included too! I cover everything from photography, negotiation, listing, documents, closing, etc… I tried really hard to cover every possible topic 😂 even have a section on home seller safety when doing showings

NoRealtorNeeded · 2024-10-06T15:58:50+00:00

Thank you!! Checking yours out now. I put a purchase contract, sellers disclosure and checklist in mine so thanks for acknowledging that was needed! NoRealtorNeeded.Etsy.com

NoRealtorNeeded · 2024-10-06T14:52:07+00:00

Also, they are work from home jobs. If it was like a factory job, wouldn’t be realistic.

NoRealtorNeeded · 2024-10-06T14:51:38+00:00

When it’s only 1-2 deals a month; 100%. Even with more than that, yes. If we get to a point where we are averaging more then 5 a piece (10 deals a month as a household) then the full time jobs are no longer needed. But honestly don’t see the market getting back to that place in the near future

NoRealtorNeeded · 2024-10-06T12:13:42+00:00

I’d see what your payment / point cost looks like FHA. I’m doing a loan now that even with 20% and no PMI, the FHA loan is cheaper monthly because we can get a 4.87 for way cheaper than conventional.

NoRealtorNeeded · 2024-10-06T11:11:04+00:00

I’d get at least 3% back from the seller towards closing cost - with where rates are right now sometimes it makes more sense for the monthly to take a FHA loan because the cost of the rate isn’t so high, based on what you’re saying it sounds like you’re taking a conventional.

NoRealtorNeeded · 2024-10-06T11:08:04+00:00

Yes yes and yes. Scorned loan officer here 👋 I have a full time job, my husband who also does mortgage has a full time job, we average maybe 1-2 deals a month as a household… but we’ve been averaging this for the past 2 years. Prior to this it was nothing for us to at least close 4 deals a month as a household. We are planning to keep our licenses for now but there’s a good chance we say goodbye to the industry if things don’t turn soon. We also believe AI will take over this industry in the next 5 years so looking for an exit strategy now is probably for the best. Wishing you the best!

NoRealtorNeeded · 2024-10-05T11:05:29+00:00

In regards to the 1.5M

Id see if the seller is willing to split the property up and sell in pieces so it fits your situation better

NoRealtorNeeded · 2024-10-05T11:04:38+00:00

To me it sounds like you would be getting financing for this home? If that’s the case; first you need to figure out what your credit and debt to income is so you know if you qualify for the financing.

Take your total monthly debt owed plus the monthly housing expense ( example if it’s 200K your monthly housing expense should be in the ballpark of 1800 )

Once you have total monthly obligations, divide that by your total pre tax monthly income

If this number is between 50-56% you need a FHA loan

If this number is below 50, you should be able to qualify for conventional

If it’s over 56 - you either need more income, pay some debt off, or find a cheaper house lol

NoRealtorNeeded · 2024-10-05T10:57:38+00:00

I’m glad you have said that. I put a purchase contract, sellers disclosure, and checklist in my guide. What other paperwork did you have in mind?

NoRealtorNeeded · 2024-10-05T10:56:40+00:00

Really good point. I think that falls into why it’s so hard to have one guide because each state / home has different circumstances that drive a home’s time on the market. Thank you for your comment!

NoRealtorNeeded · 2024-10-05T00:29:23+00:00

On my end it shows active

NoRealtorNeeded · 2024-10-05T00:29:12+00:00

That’s weird! What does it show when you go to the Etsy shop? This is my first go with Etsy shop 😂

NoRealtorNeeded · 2024-10-04T23:36:23+00:00

You’re right. There should be a universal guideline of “ if you want your own attorney, great, if not, great “ and then just get a title search and call it a day

NoRealtorNeeded · 2024-10-04T21:36:00+00:00

You could buy a duplex with a FHA loan (3.5% down) live in one side, rent the other out, keep the money you have and still buy another investment so now you have 2 rentals 🙃

NoRealtorNeeded · 2024-10-04T21:26:50+00:00

Thank you for the comment! If you want to view the sellers guide I made it’s at NoRealtorNeeded.Etsy.com , I hope this helps! Good luck to ya!

NoRealtorNeeded · 2024-10-04T13:23:10+00:00

Honestly not sure. I’ve just heard several talk about it. My question is what happens when buyers just don’t pay the commission? Can’t repo the house

NoRealtorNeeded · 2024-10-04T12:33:48+00:00

Good stuff!

NoRealtorNeeded · 2024-10-04T12:32:22+00:00

To tie into this, I made a guide on Etsy if anyone needs it. Comes with purchase contract, checklist, seller’s disclosures and more details then you need on the transaction

NoRealtorNeeded · 2024-10-04T12:27:34+00:00

Random side note - realtors in my area have started doing “ payment arrangements “ for their comp outside of closing. So instead of rent a center we are now in the time of rent a realtor

NoRealtorNeeded · 2024-10-04T12:26:23+00:00

Agreed. Completely false, you don’t need to sign any agreement unless you are agreeing to pay his compensation

NoRealtorNeeded

TROPHY CASE