Veer Lofts must be feeling the pressure of the recent auctions. They’re offering a $8k credit on purchases through December 1, 2009. If you act fast you could also get the first-time home buyer credit of $8k making for a $16k credit. They’re also offering a 4% SOC. Which means your agent will get 4% of the purchase price. If you’re a smart buyer you’d ask your agent to share their commission with you.
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1 ashleydolbert // Oct 19, 2009 at 12:06 pm
I keep telling anyone who will listen, to ignore the “good” news being proliferated on TV, and pay no attention to the soaring stock market right now.
The bottom line is that, since the Depression, almost every Recession the US has had that has gone on longer than a year, has had at least one “false recovery”.
And I believe we are in the midst of one right now.
There are too many other indicators out there being ignored that are warning us that this isn't over yet. Housing is flat (or still going down in some areas), unemployment is still rising slightly, and the rapid escalation of gold prices are all cause for concern.
Be wary and pay attention over the next 90 days or so. I suspect there is one more dip ahead of us on this unfortunate roller coaster ride…
2 Gene // Oct 20, 2009 at 4:02 pm
If you're really smart, and don't have an agent, can you walk in and tell them you want the 4% on top of the $8,000 on top of the price reduction?
3 mattgoyer // Oct 20, 2009 at 5:03 pm
Generally that doesn't work. If someone has had some success with that let
us know!
4 Sam DeBord, SeattleHome.com // Oct 20, 2009 at 10:48 pm
Sorry, Matt, but the buyers are getting an extra $8k, and the agent is getting an extra $2-4k ……why would the agent need to “share”?
Gene, your idea's a good one, but it probably won't work. The developers want to keep the “sold” price high, so that future buyers won't ask for the same low price you received. You might be able to get a credit for closing costs, but that's already being covered with the $8k. They just won't lower the sale price much.
5 The MD // Oct 20, 2009 at 11:12 pm
TO ALL NEW BUYERS – Please read the comment posted above to reveal why YOU, a buyer, should NOT use Sam DeBord to represent you in a purchase transaction.
An agent's commission has historically been 3%. Believe me, no agent is worth $7,500 to draft some documents (eh hem, actually they're already drafted as these are typically “canned” docs that only require a few fields be filled in). Because the property has already been identified, meaning most of the work has already been done for the Buyer's Agent, I see no reason why the Buyer's Agent should receive anything more than he/she has historically received. In fact, that agent should receive even less than 3% (probably 2% is adequate and fair) as the property is indeed already identified and marketed to the masses. It isn't like the Agent spent copious amounts of time actively seeking out the property and negotiating a “good deal” for the buyer. What greed, dude. Seriously, what greed.
6 cameronrex // Oct 21, 2009 at 12:40 pm
The MD – I think you are being a little harsh. Veer is only identified if a buyer knows about it. If the buyer found it on their own a buyers agent is probably not even involved and instead the onsite agents – who really do very little – get their commission/paycheck.
However, buyers agents, especially in this market, often show properties to clients for weeks on end – not making a dime until a purchase is made. And the commission doesn't just pay for the filling out of documents (yes they are usually 'canned') but for advice and knowledge and time spent assisting a client. Sure there are worthless agents out there, just like there are worthless doctors, but I don't think generalizations should be made.
7 The MD // Oct 22, 2009 at 6:49 am
Cameronrex – So, I'll give you your hypothetical situation (even though I would venture to say that most any buyer in this market has done his or her own homework and knows what “deals” are currently marketed out there)… Everything you described is what a buyer's agent has always done – nothing more, nothing less. So, why does this mean he/she deserves MORE payout than he/she has historically received, especially when he/she was hand-delivered such a heavily marketed property? Let's face it, it isn't exactly like agent would have to actively seek out and dig deep to find this kind of deal. It's plastered all over for the entire world to see.
I'll stick with Matt's sentiments, and I agree the agent's commission should be split between Buyer's Agent and Buyer.
8 SeattleSteve // Oct 22, 2009 at 10:37 am
Selling office commission is decided by the Seller and it is their choice what to pay. If the seller wants to pay more to agents that sell their property it is their business and then the agents decision if they want to give some back to the client. If a buyer feels they can buy a home on their own without their own agent or using the site agent more power to them and hopefully they can negotiate a better deal.
I have sold bank owned properties with a 2% or 2.5% commission and did twice as much work as I would on a non-bank owned but didn't ask the buyer to make up the difference from the “traditional” 3% and would never dream to.
Some deals are easy and you don’t have to do a ton of work for your commission and others you spend weeks on and then get paid nothing. That is the difference between commission and salary/hourly wages. There is huge risk not to get paid on hours and hours of work and that is why the reward is greater for the deals that do go together.
The MD – Yes there are drafted “canned” documents available to agents but they still have to be filled out correctly and if you don’t know what you are doing it can really screw up a deal and cost the buyer or seller a lot of money.
There are good and bad agents just like any profession. It is up to the customer (Buyer or Seller) to find the best possible agent. Don’t smear everyone with same brush just because you have met a few bad ones.
BTW – is this The MD that is always on here or the imposter?
9 The MD // Oct 22, 2009 at 8:51 pm
This is The MD that is always on here. Still, though, you nor anyone else has provided a compelling business case why this transaction would be worth 4%. Deals come, deals go, some big, some small, some close, some don't. So what. Why is this worth 4% over that of traditional 3%? Let it go and give it up to the Buyer you represent. WIthout the Buyer, you wouldn't even have an income. Buyers can, believe it or not, exist without Agents. And yes, I've seen the canned docs (the ones primarily used in MOST real estate transactions). A monkey could fill them out.
10 bwc // Oct 23, 2009 at 1:53 pm
The ultimate question is this…..why is the traditional amount 3%? Where did this number come from?
Also, I no longer use traditional agents. I like companies like Redfin, or even real estate attorneys to write up my contract. Guess what? There are real estate attorneys that have taken the 60 hour real estate class, have access to show homes, and can fill out the canned contract, for less than $1500! All other commissions are refunded to the buyer! A google search provided me with a list, I made some calls, and found 2 law firms that offer this service.
11 cameronrex // Oct 24, 2009 at 12:00 am
The MD and bwc – great, use those types of agents. Personally, if I were in the market I'd probably use Redfin as well. However, unless a buyer negotiates up front the expectation that the agent is to only get x there is no automatic right to get more. You are both letting personal prejudices towards agents get the best of you.
Sure, without the buyer some agents would not have income. Without the agent some – not all – buyers would never be buyers due to their not having a clue as to how to find and buy a place to live. And while a monkey might be able to fill out a real estate contract could it explain the legal ramifications of what the prospective buyer is signing. Savvy buyers might understand but not everyone will.
12 Sam DeBord, SeattleHome.com // Oct 25, 2009 at 9:20 pm
Glad to see all of the responses. I knew some folks wouldn't like it, but I'm just shooting straight, not sugar-coating it.
I've worked plenty of transactions for buyers when I was only offered a 2% commission from the sellers. Should I ask my buyers to give me some extra cash to make up for it? Of course not. I still give my clients great service and my full attention for a 2% commission. In the rare occasion when the seller offers a 4% commission, why would I turn it down?
You're free to attempt to purchase a home without representation. However, if you choose to have an agent represent you, it doesn't make sense to tell your agent how much he/she can receive from the seller.
13 Sam DeBord, SeattleHome.com // Oct 25, 2009 at 9:30 pm
MD, clearly, you don't need these “canned documents” that a monkey can fill out, so I'm not sure why you're worried about agents. Many buyers feel that their agents assist in negotiating prices, closing costs, upgrades, inspections, timelines, and closings. If you don't need one, work directly with the sellers.
“Why is this worth 4% over that of traditional 3%?”
I don't know. The seller offered it to buyers' agents. Why is the anger focused on the buyers' agents?
14 Sam DeBord, SeattleHome.com // Oct 26, 2009 at 4:20 am
Glad to see all of the responses. I knew some folks wouldn't like it, but I'm just shooting straight, not sugar-coating it.
I've worked plenty of transactions for buyers when I was only offered a 2% commission from the sellers. Should I ask my buyers to give me some extra cash to make up for it? Of course not. I still give my clients great service and my full attention for a 2% commission. In the rare occasion when the seller offers a 4% commission, why would I turn it down?
You're free to attempt to purchase a home without representation. However, if you choose to have an agent represent you, it doesn't make sense to tell your agent how much he/she can receive from the seller.
15 Sam DeBord, SeattleHome.com // Oct 26, 2009 at 4:30 am
MD, clearly, you don't need these “canned documents” that a monkey can fill out, so I'm not sure why you're worried about agents. Many buyers feel that their agents assist in negotiating prices, closing costs, upgrades, inspections, timelines, and closings. If you don't need one, work directly with the sellers.
“Why is this worth 4% over that of traditional 3%?”
I don't know. The seller offered it to buyers' agents. Why is the anger focused on the buyers' agents?
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