4 ms·

Just to keep pricing in context, the media home value in the US is right around $200k. So the transfer cost ends up being ~$12k. If the RE attorneys (on each si

by runako 9y ago

Just to keep pricing in context, the media home value in the US is right around $200k. So the transfer cost ends up being ~$12k. If the RE attorneys (on each side) each spent a full day @ $200/hour on the closing, you're looking at $3,200. That creates an extra $9k to split between the parties. And there's no way a closing takes a full day for an attorney (and most will be less than $200/hr). The best part is that that same $3,200 will transfer a house that costs a lot more. The more expensive the house, the more you should want to use a lawyer over a realtor.

opo 9y ago
>... That creates an extra $9k to split between the parties. And there's no way a closing takes a full day for an attorney (and most will be less than $200/hr). Yes, most brokers use standard forms, there isn't much actual expense there for them - which is a good thing because a real estate attorney I know bills at more than $400 per hour. A good realtor does a LOT more than just fill out the contracts for you to sign. The realtor will spend lots of time scheduling inspections, helping find contractors, being at the property to watch contractors, scheduling the photographer, putting the ad on MLS, running open houses, answering questions from buyers, negotiating with buyers, working with the title company, arranging to hand the keys off to the buyer, etc, etc. You are paying for their experience to know what needs to be done and for the time it takes to do all those tasks that I mentioned (and others). The standard commission costs are high, but there are brokers like Redfin who are less expensive.
- just4themoney 9y ago
  You (the buyer) schedules the inspection, you can ask the real estate agent to do it for you but it's a simple phone call. I don't understand the contractors statement, a contractor is not a usual part of a real estate transaction, at least in my experience? Once again, scheduling photographs is a simple phone call to a photographer. Putting an ad on the MLS can be done yourself for a small fee - https://fsbo.com/flat-fee-mls https://fsbo.com/flat-fee-mls Buyer's questions can be better answered yourself, most sellers agents are unable to answer any questions and they'll have to relay most questions to you anyways, once again, my experience. Open houses are more about generating leads for the agent then they are about showing your house. Negotiating with buyers can be done yourself easily. Working with the title company isn't something real estate agents do, not around here anyways. My lawyer handled all the title stuff. Plus what sort of "work" does an agent need to do with the title company? Handing off the keys? Seriously? That is done at closing and shouldn't cost $5,000+.
  - opo 9y ago
    >You (the buyer) schedules the inspection, you can ask the real estate agent to do it for you but it's a simple phone call. Yes obviously you can do that. But you have to take the time to research the different companies a little to find a good one and you have to be there while the inspection is done. >...I don't understand the contractors statement, a contractor is not a usual part of a real estate transaction, at least in my experience? In selling, often there are either things that come up on inspection that need to be fixed or improvements that are done to make the property sell better - new paint, new carpeting, etc. Obviously a seller can do this, but it takes time to get bids and to be at the house to let them in, etc. >...Putting an ad on the MLS can be done yourself for a small fee - https://fsbo.com/flat-fee-mls https://fsbo.com/flat-fee-mls Yes, obviously this can be done, and yes you can also take the time to look at a number of listings and write the ad copy if you choose. >...Buyer's questions can be better answered yourself, most sellers agents are unable to answer any questions and they'll have to relay most questions to you anyways, once again, my experience. A good agent can save you time here. >...Open houses are more about generating leads for the agent then they are about showing your house. One way or the other, you need someone there during an open house. Either you have to be there or you need to pay someone to be there. >...Negotiating with buyers can be done yourself easily. Obviously a seller can negotiate themselves and maybe they are as good at negotiating and know as much about the local market as people who do this everyday and maybe they know the agents to avoid. Though maybe it isn't that uncommon that the seller hasn't sold many properties and is better off having someone else help them. >...Working with the title company isn't something real estate agents do, not around here anyways. My lawyer handled all the title stuff. Plus what sort of "work" does an agent need to do with the title company? Different situations in different parts of the country I guess. >...Handing off the keys? Seriously? In this part of the country, it is done later - agent meets the person at the house. Again, no reason you couldn't do it, but it is time out of your day. >...That is done at closing and shouldn't cost $5,000+. Not sure where the number comes from - there is no need to put words in my mouth. Simply listing some of the the things the agent did when my place was sold. If I had to take time off of work to try and handle all these details, it would have cost me a lot more than the commission the agent got.
    - 9y ago

by runako 9y ago

opo 9y ago

>... That creates an extra $9k to split between the parties. And there's no way a closing takes a full day for an attorney (and most will be less than $200/hr). Yes, most brokers use standard forms, there isn't much actual expense there for them - which is a good thing because a real estate attorney I know bills at more than $400 per hour. A good realtor does a LOT more than just fill out the contracts for you to sign. The realtor will spend lots of time scheduling inspections, helping find contractors, being at the property to watch contractors, scheduling the photographer, putting the ad on MLS, running open houses, answering questions from buyers, negotiating with buyers, working with the title company, arranging to hand the keys off to the buyer, etc, etc. You are paying for their experience to know what needs to be done and for the time it takes to do all those tasks that I mentioned (and others). The standard commission costs are high, but there are brokers like Redfin who are less expensive.

just4themoney 9y ago
You (the buyer) schedules the inspection, you can ask the real estate agent to do it for you but it's a simple phone call. I don't understand the contractors statement, a contractor is not a usual part of a real estate transaction, at least in my experience? Once again, scheduling photographs is a simple phone call to a photographer. Putting an ad on the MLS can be done yourself for a small fee - https://fsbo.com/flat-fee-mls https://fsbo.com/flat-fee-mls Buyer's questions can be better answered yourself, most sellers agents are unable to answer any questions and they'll have to relay most questions to you anyways, once again, my experience. Open houses are more about generating leads for the agent then they are about showing your house. Negotiating with buyers can be done yourself easily. Working with the title company isn't something real estate agents do, not around here anyways. My lawyer handled all the title stuff. Plus what sort of "work" does an agent need to do with the title company? Handing off the keys? Seriously? That is done at closing and shouldn't cost $5,000+.
- opo 9y ago
  >You (the buyer) schedules the inspection, you can ask the real estate agent to do it for you but it's a simple phone call. Yes obviously you can do that. But you have to take the time to research the different companies a little to find a good one and you have to be there while the inspection is done. >...I don't understand the contractors statement, a contractor is not a usual part of a real estate transaction, at least in my experience? In selling, often there are either things that come up on inspection that need to be fixed or improvements that are done to make the property sell better - new paint, new carpeting, etc. Obviously a seller can do this, but it takes time to get bids and to be at the house to let them in, etc. >...Putting an ad on the MLS can be done yourself for a small fee - https://fsbo.com/flat-fee-mls https://fsbo.com/flat-fee-mls Yes, obviously this can be done, and yes you can also take the time to look at a number of listings and write the ad copy if you choose. >...Buyer's questions can be better answered yourself, most sellers agents are unable to answer any questions and they'll have to relay most questions to you anyways, once again, my experience. A good agent can save you time here. >...Open houses are more about generating leads for the agent then they are about showing your house. One way or the other, you need someone there during an open house. Either you have to be there or you need to pay someone to be there. >...Negotiating with buyers can be done yourself easily. Obviously a seller can negotiate themselves and maybe they are as good at negotiating and know as much about the local market as people who do this everyday and maybe they know the agents to avoid. Though maybe it isn't that uncommon that the seller hasn't sold many properties and is better off having someone else help them. >...Working with the title company isn't something real estate agents do, not around here anyways. My lawyer handled all the title stuff. Plus what sort of "work" does an agent need to do with the title company? Different situations in different parts of the country I guess. >...Handing off the keys? Seriously? In this part of the country, it is done later - agent meets the person at the house. Again, no reason you couldn't do it, but it is time out of your day. >...That is done at closing and shouldn't cost $5,000+. Not sure where the number comes from - there is no need to put words in my mouth. Simply listing some of the the things the agent did when my place was sold. If I had to take time off of work to try and handle all these details, it would have cost me a lot more than the commission the agent got.
  - 9y ago