IrvineRealtor’s Proposal:

[IrvineRealtor_IHB]

Hire a dedicated transaction manager for your file, to monitor all of the paperwork during the purchase and after

Is the transaction manager the one that we are supposed to communicate with during the transaction, you, or both? Is the transaction manager just "behind the scenes"?

I will remain the prime point of contact. She (already working for me) will be available directly as well during 9-5 business hours. She is a former full-time realtor who has several years of experience, as well.

 

[usctrojanman29_IHB]

What I will need from you, in a note to my email address:



1. A completed pre-approval from a direct lender in an amount at least equaling your purchase offer price.

2. Proof of funds, sufficient to complete the transaction (a copy of your bank statement or savings from which you will be pulling the cash.)

3. Your full name(s), email, and contact phone numbers.

4. The property address that you are interested in.

5. The price and terms of the offer you would like to submit.

6. An agreement on what our terms are, up front, in writing.

Deuce, I can submit 2-6 without any problems. Can i complete a pre-approval from a California lender even though i live out-of-state?

I would highly advise that buyers obtain loan pre-approval letters from direct lenders as that is what most listing agents are looking for. Most large direct lenders have the licenses and ability to make residential mortgage loans in most all states, including California. So yes, you would be able to obtain a loan pre-approval letter from a lender if you live out-of-state so long as you qualified for the loan.

trojanman,

With all due respect, I'd appreciate if I can respond to questions directed specifically towards me, in particular on this thread. This is an open forum and you may do as you will, but I'm just making the request.

You got it, sorry about that.

 

[IrvineRealtor_IHB]

Will complying with the 1st requirement (approval letter) incur a hard pull on my credit report? If so, that's not kosher. I know that as of a few months ago I'm sitting a little above 800, and I wouldn't want to jeopardize it going below 760 (isn't that the demarcation between getting the very best rates?) How about you take my word that "I'm good for it"

garrison - Unless you've squandered your cashout from selling your Oak Creek home, I'm pretty sure you're good for it. You will still need to provide that letter to any seller when the time comes to make your offer. I won't need it in advance, so only when you're ready.

 

[IrvineRealtor_IHB]

Have I missed something? Where is the mention of rebate/cost?

There are several flavors of discount brokerages around, each with their own changing rebate/cost structure. Take your pick...

My advantage is that I am smaller, more nimble, and hope to show that I can outperform them.

 

[irvine_home_owner_IHB]

I wish IR2 the best of luck and will use him either in the full, self or somewhere in between service capacity in the near future (well... have already started in a way).

Flexible terms, rebates, service etc etc are all good... but when it comes down to it, you got to trust the person and that's what matters most.

 

[CM_Dude_IHB]

If I have an opportunity to use you, I'll let you know - thanks!

 

[kcmkane_IHB]

...but when it comes down to it, you got to trust the person and that's what matters most.

Yep, that pretty much sums it up, IHO. And that's why Scott has earned my business when the time is right.

 

[caycifish_IHB]

In my real life interactions with Scott he has always treated me with kindness and respect. Not only that, he has also never failed to attentively treat me as a unique individual.

I have no doubts he will treat his clients in the same fashion.

 

[NewportSkipper_IHB]

I think you're a real pro, but I have to ask the obvious question(s):

You can't legally perform this work with your license active elsewhere unless you work on a referral basis, which means another person also has to be paid. How do you plan to work around that? Also, how does that impact your Errors and Ommissions coverage, especially in light of your current broker frowning on this model to begin with? It looks like, on the surface, you are trying to have your cake and eat it too.

 

[PANDA_IHB]

I think you're a real pro, but I have to ask the obvious question(s):

You can't legally perform this work with your license active elsewhere unless you work on a referral basis, which means another person also has to be paid. How do you plan to work around that? Also, how does that impact your Errors and Ommissions coverage, especially in light of your current broker frowning on this model to begin with? It looks like, on the surface, you are trying to have your cake and eat it too.

NewportSkipper, If you have your broker's license, can't you become a broker associate with a well known brokerage like "REMAX" and also run transactions through your own brokerage firm at the same time? I don't understand how this cannot be done?

 

[IrvineRealtor_IHB]

I think you're a real pro, but I have to ask the obvious question(s):

You can't legally perform this work with your license active elsewhere unless you work on a referral basis, which means another person also has to be paid. How do you plan to work around that? Also, how does that impact your Errors and Ommissions coverage, especially in light of your current broker frowning on this model to begin with? It looks like, on the surface, you are trying to have your cake and eat it too.

NewportSkipper - You are very right, but I assure you that all parties are aware of what's going on and it is a legal arrangement. Both brokerages hold separate E&O, so everyone is covered.

You may also be right with the cake comment. I've been wrong before and I'll be wrong again. But in this case I'll err on the side of testing limits rather than sitting on the sidelines and waiting for others to tell me what I can and can't do. Time will tell.

-IR2

 

[NewportSkipper_IHB]

I think you're a real pro, but I have to ask the obvious question(s):

You can't legally perform this work with your license active elsewhere unless you work on a referral basis, which means another person also has to be paid. How do you plan to work around that? Also, how does that impact your Errors and Ommissions coverage, especially in light of your current broker frowning on this model to begin with? It looks like, on the surface, you are trying to have your cake and eat it too.

NewportSkipper - You are very right, but I assure you that all parties are aware of what's going on and it is a legal arrangement. Both brokerages hold separate E&O, so everyone is covered.

You may also be right with the cake comment. I've been wrong before and I'll be wrong again. But in this case I'll err on the side of testing limits rather than sitting on the sidelines and waiting for others to tell me what I can and can't do. Time will tell.

-IR2

Nevermind....good luck.

 

[Gohabsgo_IHB]

Access takes time, gas, and energy, and those have costs. I'm willing to trade those costs to suit the needs of several people here who can get in during open house, or otherwise. Any caddy with a key can get you access.

GL IR2, I plan using your services when my time comes...which might be sooner, but more likely later!

I totally understand Autox question, so are you suggesting to use a realtor to tour all homes and use you when we would know what to get? Not a bad plan, but it's abusing the other realtor. If I understood this wrong, are you suggesting to use a more middle of the road approach? If I can save 1% by abusing another realtor, I'd probably do it and feel bad for a day or two but I'll get over it.

With that said, I really like your proposed arrangement and it should tailor pretty well to some people on this blog.

 

[zubs_IHB]

If you want to tour a home, it should like $100 / house. Then if you toured 5 houses, it would be $500 bucks. Then if you buy one, the money should be refunded....anyway something like that.

 

[PANDA_IHB]

Access takes time, gas, and energy, and those have costs. I'm willing to trade those costs to suit the needs of several people here who can get in during open house, or otherwise. Any caddy with a key can get you access.

GL IR2, I plan using your services when my time comes...which might be sooner, but more likely later!

I totally understand Autox question, so are you suggesting to use a realtor to tour all homes and use you when we would know what to get? Not a bad plan, but it's abusing the other realtor. If I understood this wrong, are you suggesting to use a more middle of the road approach? If I can save 1% by abusing another realtor, I'd probably do it and feel bad for a day or two but I'll get over it.

With that said, I really like your proposed arrangement and it should tailor pretty well to some people on this blog.

So are you suggesting that we have Trojanman driving us all around South OC/Irvine touring all the homes and when we are ready to buy the home we like, we just pick the phone and call up Deuce?

 

[irvine_home_owner_IHB]

$100 a house seems kind of high. If I remember IrvineRenter's proposal there was some tiered program that included home tours and then a credit if a home was purchased.

This way the realtor gets compensated for time spent for buyers who end up not purchasing.

In general, the commission model works okay for buyers since that 2.5-3% is not coming out of your pocket and as long as the realtor is good, they will end up buying... and if the realtor is really good... they will end up referring him/her to other people who will buy/sell.

I think for sellers it's harder. To me, a good realtor will have an open house as often as possible (especially for those people who don't have access otherwise) but that is time consuming (there are only so many Sat/Sun in month). I don't see that as a total waste of time for the realtor because it does provide them an opportunity to market themselves and gather more leads (which for some has become the primary purpose of an open house rather than sell that house). For that time and effort, as a seller, it's worth it to pay the commission but I know others don't feel that way.

As an additional service down the road, just like you have hired a transaction manager, maybe you hire/contract another realtor whose main purpose is to provide access to homes. That's basically what our old realtor did, since he wasn't very familiar with Irvine, he just let us in and walked around with us making general comments since he couldn't really provide any specific details about the neighborhood or anything we couldn't read ourselves on the MLS sheet. But even for that, he was worth the commission since we toured quite a few houses, the same homes more than a few times.

Honestly, I still can't understand how someone can look at a place once or twice and be able to make that decision to buy so quickly. $100 per tour for me would probably be more than the commission... heh.

 

[irvine_home_owner_IHB]

So are you suggesting that we have Trojanman driving us all around South OC/Irvine touring all the homes and when we are ready to buy the home we like, we just pick the phone and call up Deuce?

Heh... other posters said that you can do this with Redfin. I'd rather abuse agents I don't know... and T-man would get tired of the sandwiches.

 

[IrvineRealtor_IHB]

Access takes time, gas, and energy, and those have costs. I'm willing to trade those costs to suit the needs of several people here who can get in during open house, or otherwise. Any caddy with a key can get you access.

GL IR2, I plan using your services when my time comes...which might be sooner, but more likely later!

I totally understand Autox question, so are you suggesting to use a realtor to tour all homes and use you when we would know what to get? Not a bad plan, but it's abusing the other realtor. If I understood this wrong, are you suggesting to use a more middle of the road approach? If I can save 1% by abusing another realtor, I'd probably do it and feel bad for a day or two but I'll get over it.

With that said, I really like your proposed arrangement and it should tailor pretty well to some people on this blog.

So are you suggesting that we have Trojanman driving us all around OC/Irvine touring all the homes and when we are ready to buy the home we like, we just pick the phone and call up Deuce?

I'm not suggesting that you abuse anyone. That's bad mojo.

I simply recognize that many buyers (especially here) are very aware of their target homes, and can benefit from the bare-bones approach. I also needed to correct the misinformation that I am not targeting these aware, educated clients that are looking for this style of service.

I have been compiling the list of all Irivine's floorplans and closed sales and making them available on the www.irvinerealtorsite.com links so that everyone can have an idea of how homes are laid out, what they've actually closed for, and how much down payment buyers are coming in with. This has been specifically to enable people to be more aware. These are absolutely the people I want to work with when the time is right, and I've needed to clarify what "working for a fair fee" meant and included.

A $$$/home is interesting, but seems unwieldly. When the time comes, I'm open to figuring it out on a case-by-case basis. That's all.

Thank you again,

-IrvineRealtor

edit to add: I like IHO's idea of a dedicated "tour guide" and may be one of the expanded duties of the transaction coordinator as she's available. If I'm available, I'd obviously still prefer to take people out myself.

 

[roundcorners_IHB]

Scott,, great idea... now as a first time home buyer would you recommend taking the value approach? Theoretically I know the process of buying a home, but I'm sure when the time comes and the wife and I are stressed out, pulling all the funds, finding a lender, not going beyond contingencies, contacting the appraiser, inspectors... etc... will you consider that the middle approach? Maybe have an on-line check-list or a template for us to follow through...

 

[irvine123_IHB]

As a sophisticate home buyer, I would like to see is a la cart service menu. I won't be the first one or the last one to say that the commission vs. service provided is completely off generally speaking.

I think any agent should recover their normal business expenses based on a sustainable business model, plus a reasonable profit. It is hard to justified when the $/ hr earned both based on the amount of effort, and sophostication of the services is higher than a top 5% corporate lawyer or doctor.

So here is what I WOULD like to see: give the option of charging me based on the work you actual do. Different type of work maybe can have different hourly rates. If home owner want a lot of open house, you should charge by per open house; if they want you to coordinate inspection, escrow, etc, then you can charge them accordingly. Off course, if someone wants you take care of everything, then you give them the price for cradle to grave services.