IrvineRealtor’s Proposal:

[usctrojanman29_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.

Couldn't agree with you anymore...it really reminds me of the matching principle during my audit/accounting days. A more fair realtor compensation structure for realtors would be a work performed to an hourly rate plus some kind of bonus for closing a transaction. Unfortunately, having the NAR adopt a broad-based wide-sweeping change to the current compensation structure for realtors like the one you described would be like an ant pushing a car up hill. It will be up to the agents to tailor various service packages for their clients.

 

[Nude_IHB]

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.

I smell a new business opportunity. First, get one of these:

Then hire drivers who need to supplement their 201k's, slap a brokerage logo on the back of the van, outfit it with a GPS and Redfin, and pick people up at the Realtor's office. A cooler of beer and wine splits, a couple of staggered bathroom breaks and you have a captive audience for 4-6 hours.

 

[awgee_IHB]

One may preview a home by calling the listing agent and asking to see the home. You are not wasting anyone's time. It is in the best interest of the listing agent to show you the home. If the listing agent feels it is a waste of their time, I am sure they are free to say so.

 

[usctrojanman29_IHB]

One may preview a home by calling the listing agent and asking to see the home. You are not wasting anyone's time. It is in the best interest of the listing agent to show you the home. If the listing agent feels it is a waste of their time, I am sure they are free to say so.

This is very true, but be forewarned that those listing agents will only do so if you tell them you are not working with a listing agent so a little fibbing will be in order to get this to work. A few of my buyers tired doing that when I was out-of-town and as soon as they told the listing agents they already had a buyer's agent the listing agents replied with "have your agent show you the property." Realtards being realtards. haha

 

[awgee_IHB]

One may preview a home by calling the listing agent and asking to see the home. You are not wasting anyone's time. It is in the best interest of the listing agent to show you the home. If the listing agent feels it is a waste of their time, I am sure they are free to say so.

This is very true, but be forewarned that those listing agents will only do so if you tell them you are not working with a listing agent so a little fibbing will be in order to get this to work. A few of my buyers tired doing that when I was out-of-town and as soon as they told the listing agents they already had a buyer's agent the listing agents replied with "have your agent show you the property." Realtards being realtards. haha

I do not fib. I tell them the truth, which admittedly is that I am not working with an agent. But, if I was working with IR on "go minimum" rates, I would be upfront and tell the listing agent the truth if I was asked. Like I said, if they do not want to show me the home, they can say so. My guess is that I will eventually find a way to see the home, and if so desire, make an offer, and they may be out a commission.

I really do not care what a listing agent will or will not do. If I want to purchase a home, chances are good I will purchase it, and a listing agent is not much of an obstacle.

And of course, one can work with no agent, until it is time to make an offer. No fib there.

 

[irvine123_IHB]

Greats points made by awgee.

I actually found buyer agent adds very min. value when they take me to see a house. (sames goes car salesmen take me out for a test drive, and add always useless comments, and 110% of the time I know more about the car then the damn sales guy). I actually rather prefer the listing agent to show me the house. I ask a lot of questions about the history of the house, the upgrades, the problems, etc. It is hard / impossible for the buyer agent to have the time to know this about all the details of all the particular houses I am interested in. Buyer agent can probably add value to buyers who wants to know the neighbourhood in general.

Taking about an all fuxked up business model that doesn't price according to risk vs. reward: buyer agent usually does least amount of work, and risk least amount ( only skin in the game is their time of showing and running reports, but they get more than the listing agent nowdays ( 3% vs. 2%). The listing agent gets paid less, but who actually has to spend real money to do open house, photo, video, and more liability exposure on E&O.

 

[IrvineRealtor_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.

Each individual or family has a different set of needs and priorities. My purpose for this thread was to elucidate that these options are open, and have been exercised.

I'm a bit surprised that nobody has mentioned flat-rate service, which I've also suggested as a best solution to clients for their particular situation (and completed this year).

What I wish to avoid is the scenario of, "I wish I had known that before..."

If you don't know about it, I have nobody to blame but myself.

-IR2

Will see how this works out in 2015...

 

[SoCal78_IHB]

Kids, the word of the day is "elucidate".

elucidate: (e·lu·ci·date) / (?-l?'s?-d?t')

v.tr.

To make clear or plain, especially by explanation; clarify.

v.intr.

To give an explanation that serves to clarify.

- brought to you by: IR2 - The Lexiconic Realtor ™

 

[irvine123_IHB]

Flat rate svs with predetermined scope of services provided could be part of the a la cart. Only having the a flat rate svs. to replace the current % is an improvement towards the current system, but still doesn't tailor towards individual needs, espeically on buying side. I think buyer agent and listing agent should be compensated differently structurelly. Buyer agents should be more consultant like and being paid on advise, more likely to be hourly basis. Listing agent has skin in the game, and their skin in the game does vary depend on the size and price of the market. Because of the risk, I don't think it is unfair to be compensated based on success for listing agent.

Put aside the agent - broker agreement for a moment, have you ( and USC) thought about pricing a bare-bone buyer services only help buyer to submit offers after they have decided which house to buy. That services should include an opinion of their intended offer, pass along offer sheets ( we can't change the agent to agent neg. setting at this point), and do all the paper work post signing off purchase agreement?

By the way, does anyone know how much does an individual broker E&O policy cost on an annual basis?

 

[SoCal78_IHB]

While browsing Redfin just now, their policy made me think of another question... how will you handle offers on short sales? Since there is a slim chance of the buyer getting the home, will you allow tours or write offers on these homes? If so, is there a fee schedule worked up yet or how would that work? Thanks.

 

[usctrojanman29_IHB]

Flat rate svs with predetermined scope of services provided could be part of the a la cart. Only having the a flat rate svs. to replace the current % is an improvement towards the current system, but still doesn't tailor towards individual needs, espeically on buying side. I think buyer agent and listing agent should be compensated differently structurelly. Buyer agents should be more consultant like and being paid on advise, more likely to be hourly basis. Listing agent has skin in the game, and their skin in the game does vary depend on the size and price of the market. Because of the risk, I don't think it is unfair to be compensated based on success for listing agent.

Put aside the agent - broker agreement for a moment, have you ( and USC) thought about pricing a bare-bone buyer services only help buyer to submit offers after they have decided which house to buy. That services should include an opinion of their intended offer, pass along offer sheets ( we can't change the agent to agent neg. setting at this point), and do all the paper work post signing off purchase agreement?

By the way, does anyone know how much does an individual broker E&O policy cost on an annual basis?

$1,000 to $1,200 per year for brokers with no agents working under them.

 

[IrvineRealtor_IHB]

Flat rate svs with predetermined scope of services provided could be part of the a la cart. Only having the a flat rate svs. to replace the current % is an improvement towards the current system, but still doesn't tailor towards individual needs, espeically on buying side. I think buyer agent and listing agent should be compensated differently structurelly. Buyer agents should be more consultant like and being paid on advise, more likely to be hourly basis. Listing agent has skin in the game, and their skin in the game does vary depend on the size and price of the market. Because of the risk, I don't think it is unfair to be compensated based on success for listing agent.

Put aside the agent - broker agreement for a moment, have you ( and USC) thought about pricing a bare-bone buyer services only help buyer to submit offers after they have decided which house to buy. That services should include an opinion of their intended offer, pass along offer sheets ( we can't change the agent to agent neg. setting at this point), and do all the paper work post signing off purchase agreement?

By the way, does anyone know how much does an individual broker E&O policy cost on an annual basis?

$916/year.

 

[Gohabsgo_IHB]

Should you choose and agent based on its negiotiating skills? As with everything else, if you have a big mouth and know how to use it, you can make a killing.

A good agent will give you a better price (lower for buyer and higher for seller).

I want my agent to be nice with me, but be pretty tough with the counter-party.

 

[freedomCM_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.

Sorry not to have chimed in earlier, but I've been busy arranging my move to a new apartment (which IR2 helped me find).

If IR2 hadn't earned my trust through his valuable comments and service here on IHB, he would have earned it in spades spending a few hours showing us apartments last weekend. And even if you think you are a knowitall like me, a second set of eyes is great for finding the water damage and cat pee. As well as providing background info (like loans).

This is a great idea for people like us (already educated), and am very pleased to see IR2 formally propose this service.

(and I suggest that if you need a new rental as you are waiting out the hsitstorm, you email IR2!)

(and I hear that IR2 might be amenable to representing you, even if your intended purchase isn't in IRVINE)

 

[Nude_IHB]

(and I hear that IR2 might be amenable to representing you, even if your intended purchase isn't in IRVINE)

That's good to know, because there is this little place in the Magnolia district of Seattle...

 

[freedomCM_IHB]

heh, i bet IR2 would get a WA license even for a reduced commission on *that*

 

[graphrix_IHB]

(and I hear that IR2 might be amenable to representing you, even if your intended purchase isn't in IRVINE)

That's good to know, because there is this little place in the Magnolia district of Seattle...

WTF is that crap?! NEW construction in Seattle? Dude... I know I have been accused of being biased, but have you learned NOTHING? That gargage(sp) is SOOOO... not bk approved. That thing has so many structural no noes and bad Feng Shui... you might as well drown yourself in the water right here and now. Capitol Hill is the place to be! You could save a bundle and live in this place instead. It is right by the school, and you know how important good schools are. ;-P When I was there I toured this hood, and ran across an elderly lady... I asked her if she knew you... Of course she did! She said that douchebag isn't allowed in this neighborhood as long as live. She said she would stick her walker up your arse, even though she knew you would like it, before she would let you live there. I hear she has passed on. Buy now or be priced out forever! You know... they ain't making no mo land in Seattle, even less than OC. Don't miss out, because the loan mods will get you.

Seriously, Capitol Hill rocked. It was like Floral Park on steroids, bigger and with water views. Truly an amazing neighborhood we will never ever have in OC.

[/rant]

 

[Nude_IHB]

Graphrix,

Capitol Hill... is for tourists. It overpriced, there is no parking, the city government is one crackpot away from seceding from the Union and joining up Chavez, and the entire area is being slowly over-run by bitter, aging hipsters who hate anything Californian, Republicans, BMW's and My Little Ponies.

Sure that house is hideous. The clash of styles makes me want to vomit. But would I pay $6M for a scraper? You bet, if I had $8M to play with. See up here we have Christian Gladu and he designs things like this:

Basically, I can put a brand new Craftsman anywhere I want it, with modern amenities and normal sized rooms. I can even source old growth timber locally, meaning the beams won't warp in 5 years. Sure, I could live in that mold trap in the north side of Cap Hill and watch U.W. all day. Or I could head over to Magnolia and watch the ferries, cruise ships, sail boats, and cargo ships make their way in and out of the harbor. There is a reason that house costs $6M and it's not for the faux patina on the French Provincial chimney cap. However, I can bide my time as no one is going to pay that price.

Sorry for the threadjack, Deuce.

 

[graphrix_IHB]

Basically, I can put a brand new Craftsman anywhere I want it, with modern amenities and normal sized rooms. I can even source old growth timber locally, meaning the beams won't warp in 5 years. Sure, I could live in that mold trap in the north side of Cap Hill and watch U.W. all day. Or I could head over to Magnolia and watch the ferries, cruise ships, sail boats, and cargo ships make their way in and out of the harbor. There is a reason that house costs $6M and it's not for the faux patina on the French Provincial chimney cap. However, I can bide my time as no one is going to pay that price.

Sorry for the threadjack, Deuce.

Awe hell... you just need the right architect to develop your abode (BK biatch!). I don't want your "old growth" wood (insert viagra sexual connotation here), I want DRY wood to build a place. You find the land, add my knowledge, plus BK's knowledge, then you got yourself a sweet pad that will last you a life time. Don't get your hopes up... because there has been some sweet land properties going back to the bank in N. Tustin that I am drooling over. Ask IR2 and that smelly bastard formally known as Skek... it will come to you my friend, as it has come to me... more will come... it will be awesome when it does. And... we will laugh all the way to and from the bank we stole it from.

Who is Deuce again? He is the one who knows cat pee... right? Or am I confused?

 

[flmgrip_IHB]

I have used IR2's discount services a few months back and I have to recommend him for all services. I received absolut excelent advice and service!

In all and every way did IR2 supirior service!

I sold my home with the help of IR2. From listing start to close of escrow 18 days!

That says it all.

Thanks Scott for the excelent service!