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re: Let's talk closing costs for home buyers
Posted on 3/20/16 at 10:30 pm to GFunk
Posted on 3/20/16 at 10:30 pm to GFunk
Not to derail the topic but the whole home buying process is insanely complex and complicated and I feel its that way just to keep all the nonsense jobs that depend on the complexity. I have a mechanic at one of my stores who has been a mechanic for 40 years and he swears european cars are unnecessarily complex vs american cars bc of the labor unions in europe and the need to have more jobs so they just make the cars more complex so there's more work to be done out there.
I buy and sell more stock than some homes and it costs me under $7. It's ridiculous that it takes nearly 2 months to obtain financing and close a deal on a property and then based on the amount you spend a realtor can make a fortune. The difference between a realtor selling a $10M home or a $100,000 home is basically just your social network. The guys closing $100k homes can close a $10M home if they had those friends, but they don't so I don't see why selling that property is worth say $600,000 in fees, that is just ridiculous.
I hope and pray at some point in my life, Im still in my 30s, that we can simplify the process of buying/selling a home bc no offense to realtors all over, there is just no way these guys are worth the commissions they are used to. Every industry on earth has faced some sort of headwind from technology making it easier/cheaper to use except real estate. I hope we see something soon. When I sold my condo last year my realtor's response was don't worry about the 6% in fees, worry about the 94% I get you.
I buy and sell more stock than some homes and it costs me under $7. It's ridiculous that it takes nearly 2 months to obtain financing and close a deal on a property and then based on the amount you spend a realtor can make a fortune. The difference between a realtor selling a $10M home or a $100,000 home is basically just your social network. The guys closing $100k homes can close a $10M home if they had those friends, but they don't so I don't see why selling that property is worth say $600,000 in fees, that is just ridiculous.
I hope and pray at some point in my life, Im still in my 30s, that we can simplify the process of buying/selling a home bc no offense to realtors all over, there is just no way these guys are worth the commissions they are used to. Every industry on earth has faced some sort of headwind from technology making it easier/cheaper to use except real estate. I hope we see something soon. When I sold my condo last year my realtor's response was don't worry about the 6% in fees, worry about the 94% I get you.
This post was edited on 3/20/16 at 10:33 pm
3
Posted on 3/20/16 at 10:35 pm to dabigfella
Also not to derail the topic
I feel the same way about CPA's, Insurance Agents, Most Insurance Companies, and many different practices of Law/Lawyers.
We can only hope. Good Luck to the OP
I feel the same way about CPA's, Insurance Agents, Most Insurance Companies, and many different practices of Law/Lawyers.
We can only hope. Good Luck to the OP
This post was edited on 3/20/16 at 10:36 pm
Posted on 3/20/16 at 10:43 pm to dabigfella
quote:
I buy and sell more stock than some homes and it costs me under $7. It's ridiculous that it takes nearly 2 months to obtain financing and close a deal on a property and then based on the amount you spend a realtor can make a fortune. The difference between a realtor selling a $10M home or a $100,000 home is basically just your social network. The guys closing $100k homes can close a $10M home if they had those friends, but they don't so I don't see why selling that property is worth say $600,000 in fees, that is just ridiculous.
Just to make an argument, you could say you are paying that percentage up to those high amounts because that realtor put in the work to create the client list he could call upon to purchase/sell a property.
You'd think there would be some website like "Million Dollar Homes.com" that could replace that, but there's some gamesmanship in selling real estate and attracting buyers.
This post was edited on 3/20/16 at 10:44 pm
Posted on 3/21/16 at 11:29 pm to dabigfella
Groceries are more expensive at some stores. They're cheaper at Wal-Mart most of the time though.
Cole Haan are ridiculously expensive casual dress type shoes IMO. You can find similar stuff for 75% less in stores right alongside them.
Kia's cost 10-15% less than other automobiles. If not more so. The same person or subsidiary may own other dealerships that sell poorer quality cars at a higher price point.
I'm not really sure what the point is here. Realtors are not 100% necessary. I agree with you there. Hell I didn't use one to negotiate, put in my PA or complete my home's construction or closing. But I have RE finance experience.
I agree their fees are overblown. I also think appraisers are underpaid with the new regs they struggle under. I think home inspectors are worth their weight in gold. Title abstractions, attorneys or notaries, insurance agents, loan officers, appraisers, processors and underwriters are necessary.
Can they be more efficient? Absolutely, and your 2 month deal is kinda just something you threw out there. They close way faster in many instances. Sometimes they take longer. Sometimes there are pieces or parts of negotiations that delay closings. Costs to cure cosmetic, structural, or other problems with the home. Waiting for USDA to process their review of a Rural Development product package. Finding a time and meeting place to have the mortgagee sign closing paperwork.
It could also be a situation where a shrewd Losn Officer sees his March is really fat already, but his April and May might be a bit thin. Extending the process time helps them stack fees and set up pipeline and paydays using delays. Realtors do this all the time as well.
Lots of reasons-good and not so good-that might impact. You can't just say it's to keep bloated processes or procedures in place. It's a one size fits all argument in a custom tailored discussion.
Cole Haan are ridiculously expensive casual dress type shoes IMO. You can find similar stuff for 75% less in stores right alongside them.
Kia's cost 10-15% less than other automobiles. If not more so. The same person or subsidiary may own other dealerships that sell poorer quality cars at a higher price point.
I'm not really sure what the point is here. Realtors are not 100% necessary. I agree with you there. Hell I didn't use one to negotiate, put in my PA or complete my home's construction or closing. But I have RE finance experience.
I agree their fees are overblown. I also think appraisers are underpaid with the new regs they struggle under. I think home inspectors are worth their weight in gold. Title abstractions, attorneys or notaries, insurance agents, loan officers, appraisers, processors and underwriters are necessary.
Can they be more efficient? Absolutely, and your 2 month deal is kinda just something you threw out there. They close way faster in many instances. Sometimes they take longer. Sometimes there are pieces or parts of negotiations that delay closings. Costs to cure cosmetic, structural, or other problems with the home. Waiting for USDA to process their review of a Rural Development product package. Finding a time and meeting place to have the mortgagee sign closing paperwork.
It could also be a situation where a shrewd Losn Officer sees his March is really fat already, but his April and May might be a bit thin. Extending the process time helps them stack fees and set up pipeline and paydays using delays. Realtors do this all the time as well.
Lots of reasons-good and not so good-that might impact. You can't just say it's to keep bloated processes or procedures in place. It's a one size fits all argument in a custom tailored discussion.
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