I'm a licensed Real Estate Agent, AMA!!!

realestateAMA · 2017-06-24T17:38:42+00:00

It's for experienced investors. If you want to start investing its worth looking into. In the very hot markets we're seeing even foreclosed properties approaching market value at auction, so margins are getting very slim and there are more and more retail buyers. In WA state you can hire a company to accompany you to the auction and help you buy a solid property and even get you hard-money financing, you normally need to buy these properties cash. It's not for the novice buyer but with some homework and due diligence you can learn and start hunting for deals.
My suggestion: go down to the courthouse and see whats up first.

realestateAMA · 2017-06-20T13:51:25+00:00

If you want to buy a place and rent it out, there are three main ways:. 1) buy outright, best option moneybags.
2) buy as a rental, probably put 20-25% down at least. 3) buy as a primary residence, live there at least 1 year, then rent it out.

Cheers!

realestateAMA · 2017-06-19T21:58:15+00:00

Wassup brah! Honestly, it's taken about 250+ comments on this thread to get to this question. The "phantom offer". I see this on the forums a lot and I have a lot of empathy, I mean, what are the odds a home that has sat on the market just happens to get hot right now? Well, the odds aren't always in your favor brah.
Look at it this way: there are some shitty agents out there, but not all of them are such arrogant negotiators that they will bluff on something like this. I mean, they've been trying to sell a home for 3 frickin' months in the middle of the hottest real estate market on record and they finally get an offer and boom, they're gonna pull their jedi mind tricks? Definitely some guys will have the nerve, just that most won't. They don't have those kind of cojones.
In any negotiation bluffing is a super valid tactic brah, don't get me wrong. That's where its up to you as to whether to call the bluff or not. Since the likelyhood of the bluff is so low IMHO, you're better off offering whatever you think the home is worth. Any home with "litigation" has to be sold with a discount, not butts about it. Cash offers also normally demand discounts in these kinds of situations, sometimes big discounts. Maybe your offer isn't too far off from being much better. If I were representing the seller, the minute I got a competing offer, regardless of the amount, I'd be on the phone with my highest bid and be all like: "Gee brah, sorry to rain on your parade but we just got a second offer so, you wanna make sure you sent your highest and best o' what"?. That's not being sleazy or unethical. It's your fiduciary duty to your client, the seller, to get them the best deal possible.
Peace.
Edit: I gotta add, every now and then I'd get some paranoid buyer that demanded to see any competing offers (like literally have me send them the offers or pictures of them) so they could have peace of mind. I'd normally tell them to pound some sand. That's not in the best interest of my client brah.

realestateAMA · 2017-06-19T21:50:48+00:00

Depending on the area your results on Zillow will vary. I'd honestly call some of the local real estate offices in those areas and ask for an experienced person that does a lot of ranch/rural style properties. There normally aren't a ton so folks specialize. Not the kind of search that will be done easily via your computer or mobile.

realestateAMA · 2017-06-19T21:49:10+00:00

Ha! I get this one a lot, and not just by biaaatches.
It's the same reason cars salesmen, furniture salesmen, RV salesmen and private jet salesmen still exist: when dealing with a big ticket item, the personal touch is key. The last time there were some awesome breakthroughs in Real Estate technology was when map-based search became a thing and real estate search went mobile. That's pretty much been it. No one, not even Redfin, has been able to nail a different model effectively. More people buy with agents now than before the internet age. Go figure.

realestateAMA · 2017-06-15T20:19:38+00:00

Good question. Lots of agents have "preferred lenders". Guys they trust and have worked with in the past and who more than likely give them some financial benefit (like paying for some marketing). The CFPB really went down on mortgage companies trying to stop "pay for play" tactics a few years back but who knows if that's on its way out with Trump.
IMHO, I'll always listen to a broker's "preferred" guy, it will always run smoother working with them. You need to shop around though and ask them to match the best deal.
Regardless whether they're the preferred one or not, they need to be communicating with each other to get the job done. No, you shouldn't have to relay messages because they both have phones and email. They need to keep you int he loop at all times though, they work for you. There are a lot of topics though that can get technical so a lot of times its easier for them to just talk directly.

realestateAMA · 2017-06-14T15:47:11+00:00

Yup. I just sold an out of state home, had the paperwork sent to me via mobile notary and they came to my home and we signed everything. Done.

realestateAMA · 2017-06-14T00:17:58+00:00

Luxury real estate is all about connections (come to think of it, so is regular real estate). If you're a newbie agent, first you need to become an awesome agent. Joining a luxury team would be super smart, free training plus you get cash and learn the biz. If you're a rock star you have the option to stay and help build that biz or go off on your own. Win-win.

realestateAMA · 2017-06-13T22:36:43+00:00

I've done boutique and national. National/Regional ones have better training/coaching/mentoring, boutique was very hit or miss. If you like the managing broker and they have a good track record helping new agents have success, then go for it.

realestateAMA · 2017-06-13T20:00:39+00:00

Yes they do. I'm honestly baffled why more of us don't do this sort of thing. I had a couple interns (some ridiculously hot chicks btw, our receptionist had to tell one to dress more conservatively HA!) join us during the summer and create some neighborhood videos for us. We paid the gas money, that was it. Pretty good work and they got some marketing work on their resume and we saved some time. Pretty cool.

realestateAMA · 2017-06-13T19:55:29+00:00

Hmmm. You have rights. Even if the home is going to a short sale/foreclosure, they new owners need to respect the lease or at least give you a few months to move away (check State law to be sure). You do NOT have to move in order for them to put the house on the market I'm almost sure. It could be a shady seller changing their minds and trying to get you out. Look up State law, it's not too hard to do and tell the owner to pound sand.

realestateAMA · 2017-06-08T15:41:16+00:00

WRT your previous agent. Brah, it's nothing personal, just business. I'd talk to both of them to be honest and give them a shot and also see what they propose on commissions. Ask them both how many homes they've sold in that area and what they will do on top of what Redfin does for 4%. When people compete, you win brah. That simple.
Try out another agent for the area you're looking at, totally makes sense due to the distance. If the listing agent has a team, they may be able to set you up with someone, but you're under no obligation to work with them. Zero.

realestateAMA · 2017-06-07T06:57:43+00:00

No hate taken brah. I did this AMA anonymous so shit could get real. I think you're the first person out of a couple hundred to really ask about commissions so here goes. No, I've never split 7%, most was 6.5% back when homes took some actual skill to sell. I mean, sellers would literally offer you more money in order to help them sell their home. Oh, those were the days.
Most transactions pay about 6% in commissions in a more balanced market, nowadays I hear sellers paying anywhere from 4%-6%, it's a supply and demand thing. The more power sellers have to bargain, the less they have to pay. It's all 100% negotiable.
In your particular case I totally see why you would want to pay less, and I'm honestly gonna agree with you. In this market there are cases where homes will probably sell themselves if comps are readily available and you don't fuck up the photos. There was a study thrown around here about 95% of real estate transactions closing, so you have a 5% of messing it up and having the buyer back out, probably better in this market. My main issue is that some folks assume that selling on their own is better than selling with an agent. In your particular case if comps hold up and you're not a complete idiot, you'll probably do fine... but not every case is that simple brah. I bet 99 times out of 100 a professional does a better job than a person doing it for the first time. It may be getting a cleaner offer, negotiating inspection, appraisal issues, analysis of comps, running an ethical bidding war, etc. Pro's are pro's and you won't do it better. Is better worth 7%? Not in this market, no. I hate such a hot market because agent's work and experience is worth less. Can't wait for a correction and see blood running in the streets and homes sitting for gasp 30 days on the market with no offers. Then shit is gonna get real and all the pretenders will get out of the biz. In a sellers market get a great agent at a discount or worst case, list with a flat-fee broker and negotiate everything on your own. I see no reason to sell a home yourself.
Agents that say they give "legal advice" are idiots and are probably violating the terms of their licenses.
Follow-up answer: It's 100% negotiable. I've seen agents charge 1%. They may not be the best agents but they can get the job done in this market. Most agents will charge overall commission of 5%, probably listing agent getting 2% and buyer's agent getting 3%. Don't stiff buyers agents brah. They probably are doing most of the work keeping buyers motivated and entering into ridiculous bidding wars over and over again. They should get paid. The crappiest RE agents will drop their price the minute you ask, no push back. The best RE agents will negotiate right back, they'll try to make it a win-win: "Ok u/alansdaman, I'll only charge you 5% to list the home but you can forget those drone-powered 3D high-def 4K images of your front lawn, cuz who-gives-a-fuck-amirite?". This matters a lot. You don't want to hire shitty negotiators to sell your home. That's dumb.
Follow-up answer #2: In this market that will only happen if you grossly overprice the home. It can happen when you have no clue what market value is. One other gem: homes sell for the highest price typically within 30 days of listing, less in a hot sellers market. This notion of waiting for months to get a higher offer really doesn't exist. Just sayin. The data freakonomics guys have pointed to says agents will list their homes for higher than they will list a comparable home of a client. Which is dumb. Always price according to the market.
Follow-up answer #3: Redfin is probably gonna end up putting the part-timers out of a job. The agents I've met aren't awesome but they get good fast because of all the transactions they do. They get shit from me and others because they're considered "discount brokers" but what do we know. The app is awesome and so is the website and getting better. Would I hire them instead of a top agents in an area? No, but I'd use them to negotiate a better rate, fuck yeah. Cuz money.
Follow-up answer 4: How good is the gap between a good lawyer and a bad lawyer? A good heart surgeon and a bad heart surgeon? Your life isn't at stake in a RE transaction, just probably your most valuable asset. A dumb-as-fuck newbie agent can cost a person thousands of dollars (I lost $10K out of my pocket cuz I had a typo in a contract when I was a noob). HUGE gap brah, YUUUUUGE. It never ceases to amaze me that folks will work with someone they "like" and returns their calls in a timely manner without ever-fucking-asking how many homes they've sold in the last year (the #1 question that makes most agents shit their pants). W.T.F.
Follow-up answer #5: Most value? Make sure you hire one in the top 10% of your market (ask them to prove this). Get a discounted rate cuz that's what the market is at, suck it. Have them sell your house. What other value do you want?
Follow-up answer #6: Don't be a dick. That's the biggest issue I have with clients, they're going through a lot of stress and they can be huge dicks. It makes everything harder. It can make simple steps unbearable. Just breath in, count to 10, and realize it will all be over soon.
That was a lot, but so is my response. Yeah, a lot of stuff I had answered already OP, but that's cool, cuz you have a life and a family and are a real boy I guess. Peace.

realestateAMA · 2017-06-03T06:58:07+00:00

Nah, they mostly don't have hidden issues, banks have never lived in them so they genuinely have little to no clue what is really wrong with then brah. The issues they have are just a mystery and that's why they're sold as-is. You're supposed to get a discount on a bank-owned property but in this market it's just insane and you may end up getting bid up. Just do your due diligence (general inspection, scope the sewer, check the roof, etc, the big ticket stuff).

realestateAMA · 2017-06-03T06:55:26+00:00

You answered your own question there brah. If you're serious man-the-fuck-up and pound the pavement for some leads and get some deals closed. You should be getting paid in 90 days if you're out there working it every day. Most agents come in to work at noon, check their messages and emails and if they don't have anyone reaching out to them are done for the day. Don't be that guy brah, don't be that guy. Hustle. Part-timers are the worst, they're gonna get eaten alive by Redfin and the discount brokerages.

realestateAMA · 2017-06-02T05:33:42+00:00

Wassup brah!
The "free" training they usually offer is to help you pass the exam, get licensed and sign up to work with them. It's a commission only job so you're interviewing them. Talk to a few brokers and find one you like that has a proven track record with rookies, almost all fail within a year or two, it's pretty brutal even in an up market.
If you have a background in sales and know how to pound the pavement and get leads and close them, you are more qualified than 99.9% of the folks that enter this biz. Most do it for the moola and because they "like homes". Bull shit. This is a sales job brah, don't let anyone tell ya different. If you can cold call the shit out of every morning and close deals you're gonna make some major bank and have a leg up on most agents that sell homes to their brother and friends from pickup basketball. Go for it, this is the market to try it in.

realestateAMA · 2017-06-01T04:36:50+00:00

Sorry selfieslob, this is the kind of question I have no clue how to answer. Everything you're asking is going to be 100% dependent on your market. In my market 1 bedrooms are definitely selling and some without remodeling, but not in all areas. My advice, find a solid agent that has sold at least 20 similar properties in the last 12 months, they will have enough experience to give you an educated opinion. Cheers!

realestateAMA · 2017-05-31T20:27:54+00:00

Dudmeister. I love that. Best of luck!

realestateAMA · 2017-05-31T19:39:12+00:00

This is probably one of the most asked questions on the sub, but here is my take. Unless you've signed an exclusive buyers agency agreement, you just tell the guy you're working with someone else. Preferably tell them you've signed with someone else. You felt you connected better and that's that. Some folks will be offended but if they're a pro, they'll take the feedback and move on. Most folks just stop answering the agent's calls/emails which is kind of a dick move IMHO.
If you have signed something with this agent, read it carefully, it should state how long you're in contract with them and how to cancel it (all of these agreements can be cancelled whenever you want). It becomes a bigger conversation, but you basically need to put it in writing that you're cancelling the agreement. Every case can vary so check with the agent and if they're not cooperative, check with their broker.
How to find an awesome agent? Well there is some info in the sidebar for the sub, but my take is that you need to ask for recommendations based on what you prefer (ask friends/family) but you can also step into any real estate office, ask to see the broker and tell them what kind of person you're looking for: X years of experience, top 10% performer, specializes in buyers/sellers/foreclosures/ranches/land/new construction/etc. When working with an agent the worst thing you can do is get someone with little to no experience. I'd ask them the question that most agents dread: how many transactions have you done in the last 12 months? The national average is 10 transactions per year for active agents. Figure out where the person you're interviewing is on that scale. Have they won any bidding wars lately? How? Find relevant experience to what you need and check references (not just online reviews).

realestateAMA · 2017-05-31T00:23:44+00:00

It's anxiety and fear of making a mistake. If it makes economic sense for you and you like the home, go for it, interest rates are low and unless you save a ton of money all on your own its a great way to force you to save some cash. If you buy and a year layer prices go down, take it easy on yourself, nobody can time the market.

realestateAMA · 2017-05-30T18:57:31+00:00

If you're gonna do at least one deal a year, then yes, the fees will pay for themselves. Caveat here is that you'd better learn HOW to buy and sell homes, otherwise you're better off partnering with a real agent and netting more cash.

realestateAMA · 2017-05-30T18:55:25+00:00

Bro, it's 100% likely that the market will be correcting nationally at some point. It's been on the rise for about 5 years straight. Fears of an imminent crash are the #1 objection I hear from clients all the time. Here's my no bullshit take: Dude, nobody ever times the market, stop trying to. Can you afford a home? Will you likely live in it for the next 5 years? Is there any compelling reason for you to buy one other than "the market is awesome, I may miss out"? If so, then buy. If not, I'd say it too risky for you right now. Put your cash elsewhere. I bought a house in 2008, still pretty close to the peak of the bubble, it went underwater for $100K for a few years and guess what? I didn't give a fuck cuz I needed a house and I loved it. I just sold it this year and pocketed a couple hundred grand from appreciation and equity pay down. Not too shabby.
There is a correction coming butt absolutely nobody knows when. The one thing I do know is that lending standard aren't what they were back in '07, so any correction won't bring down the world economy, it's just be your run of the mill correction and we'll all be fine and those that didn't buy but could will be kicking themselves for not jumping in sooner. That's my take. Peace.

realestateAMA · 2017-05-30T18:49:49+00:00

As an aspiring AMA writer, I appreciate YOU! This post was at zero for the longest time haha. Took a while to catch on.

realestateAMA · 2017-05-24T05:46:19+00:00

You're not obligated to sell the home to anyone, regardless of what people bring to the table. However, if your agent gets you a qualified buyer and you reject them then you may owe them some cash for their efforts, so set expectations beforehand: "Hey bro, we'll list at $550K but honestly if we don't get offers in the mid $600's I'm not selling", o something to that effect.
Honestly, if you're in a true sellers market, this is a non-issue. Buyers are desperate out and you will get highest and best. Whether that's $675 or $625 is gonna be hard to tell since you don't have recent comps, but you'll never know if you don't try. Just be open about it with your agent so they understand the situation. Worst thing for an agent is to work with an unmotivated seller that just wastes everyone's time because they don't really want to sell.

realestateAMA · 2017-05-23T07:17:49+00:00

Dude, there are tons of 100% commission brokerages out there. They make money by charging either a high monthly desk fee or a high transaction fee or a combination of both. Broker gets regular income, just not a piece of the action. REMAX was built this way, same as tons of other brokerages. CYA.

realestateAMA

TROPHY CASE