There are many important components to purchasing property, whether it's your first, or fifth time. Choosing the right Realtor is probably the single most important step - but there are many others.


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. But in the long run a REALTOR® with experience and many closed transactions will cost you much less than someone who is inexperienced or unknowledgeable! A top producer's business is built on repeat clientele and referrals because they have proven they know how to select a great home for their buyers and negotiate the best price and terms. Your agent is not your best friend, your agent is your financial advisor for what may be the largest single transaction in your life!

Well written; Good Points! Please keep up the good work!

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My Personal Site: www.JodyHudson.com
Take care,
Jody
Delaware Beach Real Estate near Rehoboth Beach on The Atlantic Ocean Beaches.
Our Local Discussion Board is www.DelawareBeachBoard.com

Another problem with real estate is that it is not liquid, that is, it is not easy to convert to cash, like stocks, bonds, and savings accounts are.

Real estate is particularly non-liquid during a downturn in our markets. You will not likely hear this anywhere else, especially from other Realtors, but real estate is not a great investment, it is usually a good investment but not always, and not all the time.

Too many people buy real estate as an investment and forget that there are other reasons to buy.

I suggest that you will be much happier if you purchase real estate for lifestyle rather than as an investment, when it comes to your place of residence or your second home; both of which should be almost entirely about lifestyle. After all, a second home should be a place to enjoy a lifestyle that allows you to relax and wind down from the rest of life.

If you live a very public life, one where people are always seeking you out, where you are always in the light of public scrutiny and often in the press for instance. If your normal life is one where you must always been on your best behavior and always crafting each word and action for it’s best value – then perhaps a private place, away from others, a place where you don’t know your neighbors, is just right for you. There is much more at the SOURCE: Real Estate: Reasons and Priorities for Purchasing Property.

__________________
My Personal Site: www.JodyHudson.com
Take care,
Jody
Delaware Beach Real Estate near Rehoboth Beach on The Atlantic Ocean Beaches.
Our Local Discussion Board is www.DelawareBeachBoard.com

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?

Perhaps it would be easier to understand for both the buyer and the seller if it is labeled as being paid for from the transaction. In order for the seller to have a buyer and go to closing the buyer and the seller must both pay, so to speak. However, in most cases the original contract is the selling contract, the Listing Agreement and that says that the seller is hiring the agent and will pay the agent from his proceeds at settlement. The buyer does provide the funds. The job of the agents is to have buyers and sellers and get them together. Often there are two or more agents in two or more companies... all working to effect a successful transaction.

Sellers can of course work without an agent and buyers can work without an agent. However an agent may not by law work without a contract from either a buyer or seller. And agents like to be paid, at least once in a while, for all the time and expense they have in bringing buyers and sellers together.

You are right, you borrow the money to pay the seller and the agent. However, in many transactions the buyer works only with agents who are legally sanctioned via the contract of agency with a seller. IF, you work with a Buyers Agent, you, the buyer then pay your agent and your agent can find property for you from other agents, from For Sale By Owners and can even find properties that are not listed for sale; all for you.

I hope that helps.

__________________
My Personal Site: www.JodyHudson.com
Take care,
Jody
Delaware Beach Real Estate near Rehoboth Beach on The Atlantic Ocean Beaches.
Our Local Discussion Board is www.DelawareBeachBoard.com

We're probably a long, long way from simply charging both the seller and the buyer separate fees for our services. In due time (ten years, twenty years ahead ...?), though, I think the business has to come to this.
While it isn't a perfect analogy, two sides of a dispute each hire and pay their own lawyer. Why, then, couldn't/shouldn't this apply in a real estate transaction?
If it's done right, the sale and purchase of a property isn't a dispute (although it can be on occasion!), but a listing agent and a buyer agent have different roles (or ought to have) and the entire discounted commission problem could be set aside if each of them quoted and charged their respective client an amount for the work done on their behalf.
In many respects, this situation often applies in the commercial real estate sector. Maybe it would be a good idea to start a movement to expand it to the residential field?!!

Duncan

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Real Estate in Canada's Niagara Peninsula

Good questions the buyer needs to have answers to:

Are you ready to buy a home?
How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need?

What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research. Talk to to your agent about your "wants and needs".
sam12

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......Real Estate Investing Info.....Flipping Properties........Franchise Opportunities

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.

Mr.Jody Hudson had the courage to say its payment for the transaction and in reality the buyer bears the brunt of the cost with some parts paid by seller.

Structure can vary greatly.

Agents cant get by an intelligent person that knows in advance that if real estate commisions are a part of their loan..then by golly...they paid for it!

I paid nearly 12k commission between 2 agents when I purchased my house.

Frankly, I dont care for agents that much because most are dishonest and incompetent.
That is my opinion and not to offend anyone.

When I find an honest one I may keep forever and I think most people feel that way.
Perception is reality most of the time.


If it doesnt pan out...I will get a license.

I need to discuss the ramifications of that choice with an agent.

My business motto

"Always put relationships ahead of the money and the money will come"

In this world an honest person is remembered more than a pretty one.

ATLEAST WHEN IT COMES TO BUSINESS MINDED PEOPLE.

What do I know anyway, Im just an ignorant hillbilly.

It has been my experience that an honest and competent agent is worth more than hte commissions they are paid.

GAHILLBILLY

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!

And yes of course agents are paid by the buyer of property in a way. Sellers sign the listing agreement to contract with an agent to market their property and buyers pay the agreed upon price. The commission typically comes out of the final agreed upon price the buyer pays. It may not be directly from the buyer, but some people will always say the buyer pays the commmision. It's a matter of symantics. Get real!

I'm sorry Georgia HillBilly doesn't like agents and has had bad experiences. But don't judge the entire industry from your few, if any, experiencs with agents. I've practiced real estate sales for nearly 20 years now and I've worked with excellent agents, good agents and lousy agents. Like a lot of other things in life it's a matter of degrees. Frankly it's up to the consumer to pick a good agent and if they don't good luck to them!

__________________
Mike
http://www.HousingPredictor.com
http://www.DestinFloridaRE.com
http://www.RealEstateDomain.com

Im not judging the entire industry because of a single dishonest agent.

The last comment on my last post certainly eluded to the fact that I dont have the opinion that the entire industry is bad.

I am very distrusting of ALL agents until they prove otherwise.

My prerogative.

People are dishonest and a job description or title doesnt make them so.

There are good and bad in every walk of life.

Everybody with room temp IQ knows that.

Anybody know of an investor in the Ellijay area?

COOSAWATTE RIVER RESORT
I have a nice 1/2 acre lot with perk test close to main gate.
Worth 18-20k
Need money @13k
as advertised in Jasper and Ellijay papers.