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Getting Real About Real Estate : Buying Real Estate
by Steven Mattos
Buying real estate is a complex process, with lots of 'nickel and dime'
fees. But what is the biggest fee that is actually REDUCEABLE, 97% of
us don't even question it? It's an amazingly ignored fact, but true: Real estate agent fees are negotiable. In my area of California, it's typical that real estate agents take 6% of the sale price! And honestly folks, there are many great real estate agents out there. Some of my best friends, and two of my family members are agents. BUT…do they really deserve 6%? I think not! Think about it. When I bought my first property, I plunked down $225,000. The agents walked away with $13,500! Just for looking on a computer to pull up why I told them I wanted, and driving me around to look at a few homes. Don't get me wrong - agents can provide an invaluable service, especially in competitive bid situations or complex real estate deals (which often an attorney will be involved with - and can be hired separately). The typical home purchaser, or seller, may not need these services. Today is different. The multiple listing service (know as MLS listings) is commonly available on the web. There are web sites that search for exactly what you want! Need 2000 square feet? 3 bedrooms, 2 baths? A certain zip code for a residence? No problem. A few keystrokes and your list of dream homes is there on your computer, with pictures! (see resources below). Now I just need an agent to open the door and show me around - but do I? Many sellers will be interested in showing you their home without an agent, especially in these lean times when so many sellers are motivated to make deals. Remember that home for $225000? Some years later I sold it for much more as the market value had appreciated. BUT - I used a fixed fee broker to list my home (you can buy homes through these folks too.) This time, it only cost me $2,000 to sell my house! Which would you rather pay, $13,500 or $2,000? Tough choice eh? Many companies have popped up to help owners and buyers connect, and save on fees. Many options exist, so do your homework before enlisting your next agent: · Ask yourself is there another way to buy or sell a home · Check the web for resources · Look for agents and brokers the specialize in a set or reduced commission · Look for private investors, they often buy and sell real estate at a discount · Ask your agent for a discount (very realistic these days compared to the "boom years" of yesterday) · Do your diligence: Talk to your attorney, accountant, and tax professionals about your choices before you make them. Go for it! http://www.massagehome.com/grs
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buying real estate | selling real estate | real estate investing | foreclosures | for sale by owner | investing in tax liens | real estate |
