Buying - Make Sure It's An Informed Decision

[sam12]

Sam12..not trying to be rude but how is your post relevant to the conversation?

Just read ATLANTA REALTORS POST.

The pinochio avatar is fitting as

"As a buyer in real estate you don't pay a real estate commission directly to your agent, this is typically taken care of by the seller out of his proceeds at the closing."

We know this statement is false.

.......GAHILLBILLY

May I apologize Mr. Gahillbilly for the troubles my post gave you?

I've read carefully the thread "Buying - Make Sure It's An Informed Decision"

Then the first sentence is: --------------------------------------------------------------------------------

There are many important components to purchasing property, whether it's your first, or fifth time………………..

So I decided to put another component from the purchasing process. May be I should have mentioned in my post that I was doing so.

I am sorry again for your wasted time on reading my post. I'll try next time to be as descriptive as I can.
Thank you!

[GAHILLBILLY]

No harm No foul.


Agents are individuals.....Everyone deserves a chance to show their character for what it is.

The issue and the facts are what matter most.

I might be rough around the edges but Im not that serious.

I just happen to appreciate honest people.

An honest person impresses me.
Material things are dull compared to such a person.

Dont worry! Be happy!

[The-Yank]

This discussion avoids the main issue, Real Estate commissions are transaction costs. Regardless or which side you are on. The biggest challenge we face as an industry is to change our internal thinking. The net sheet should portray to the buyer and seller fact that the realtor and managing broker earn a fee for service, just like all the other fee’s. (Lawyer, title Fee, Loan origination fee, ect.)

My point is the word “Commission” is a huge misnomer and we should work towards the recognition that Realtors provide a wide range of services to support the client in making a decision for which we receive a fee.

[MrJodyHudson]

Google just sent this discussion thread to me, after all these months... as I ask Google to check on my name and postings all over the web - every day.

Mike (see quote below) Real Estate is not always a good investment; it is however usually a stable investment. As far as it being the basis for many if not most of the nation's wealthiest... yes it usually is; BUT that is not based on thier home it is based upon usually income producing real estate. In fact you may find that there are some, like Donald Trump, who own lots of income producing real estate and live in a leased or rented home or in a co-op.

A home in fact is not always a better investment than renting for some people.

Although buying income producing real estate, especially if it will rent for enough money to pay it's own mortgage, is a great way to start an empire; owning a home is often more expensive than renting, even after taxes, etc. For instance in a very nice location such as our beach area, a home that costs three or four million dollars can be rented for under two thousand a month on an annual basis. Quite a savings there!

Usually real estate is a solid, stable, defined investment and for some people it is a very good forced savings system. However, if you figure the total cost of owning a home and all the repairs and maintenance - even after the tax treatment of interest; there are many areas of the country where the appreciation in price minus the costs over a period of say 30 years; will give a smaller return on investment than a savings account over the same time.

There is far more to the story however; the pride of ownership and the relative privacy and relative freedom that home ownership gives is worth a lot. And, over a short time, in a good market and with a low down payment; the return on investment can be phenomenal. We were in such a period from about 2000 to 2006. Not now in most areas.

Our area is still pretty healthy. We do have more than double the number of properties on the market that we did 18 months ago and our number of sales per month is less. Our average sales price is up a bit from what our county realtors association says. I know that our web site visits are way up and have been gaining pretty steadily at about 10% per month over the last year and a half. But, buyers are very picky and only the number one best buy of any kind or location of property is selling. Whomever is in second place in thier market is getting no showings at all in most cases now.

Summation: income producing real estate is a great wealth builder especially when done as a business and expanded upon. Home ownership is a good way to save money over the long term, as good as a savings account usually and more fun. We just passed a time for speculative investment rewards and it is over... it may be a long time before it returns.

Jody Hudson has it right and wrong here! "Real Estate is not a good investment." What???

It's a great investment-- out distancing all other forms of investments for the wealthy. Check out the studies. Become informed. Get the real story about this.

True it's not a liquid investment meaning you can not turn real estate into cash quickly sometimes, and yes particularly not in a down or slowing market. But many surveys time and time again of the nation's wealthiest show that real estate was not only an avenue but the big avenue by which they made their fortunes. Wake up Jody!... (snip)...

[avonreal]

I dont understand the statement made by MrJodyHudson and every agent I have ever come in contact with.

"As a buyer in real estate you don't pay a real estate commission directly to your agent, this is typically taken care of by the seller out of his proceeds at the closing."

In my mind if its part of the loan YOU are paying for it.

Perhaps Im ignorant.
I would like to understand this so I wont be wrong anymore if infact I am wrong.

Who can learn me the truth?

yes you are paying for it but not directly out of your pocket.