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PaperclipPerfector  7mo ago (text post)   26627 thread views

Culture War Roundup for the week of March 25, 2024

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I like the comment of a buyers agent telling the customer they were free. I’ve had that happen though for a rental.

Buyers agents especially value can be all over the map. I bought raw space one time and going thru that process needed more help. Buying a standard 2 bed condo you should not need as much help. There is fat in the system if the two agents are being paid the same.

IMO do think this subject is top-level worthy as it opens the door to all kinds of new business models and the economic logic behind them. I know people looking at offering cheap buyers agents but trying to internalize all the other fees. Mortgage brokers also have a 1-3% commission so one avenue is those guys get their real estate license and provide low touch services.

Personally I feel like I would prefer it became more like an accountant and numbers focused versus a good-looking sales people job.

When I was in the market I used a buyer's agent I knew, and he was able to give me discount but it was limited based on how much his agency required him to charge. I guess there could theoretically be independent agents, but it would be tough to do it without marketing support. My guess is commissions won't change that much.

Appraisals are also a nice little grift. A friend of mine recently shelled out $5,000 for an appraisal of a property she was purchasing. Basically all the appraiser did was look at nearby comps and then produce a 50 page report that was 49 pages of boilerplate. Couldn't have taken more than a day.

$5k? I thought those were in the $1k range for appraisals. Unless we are talking something in the mid-7 figures.

Low 7 figures. Commercial property which I guess makes a difference.

Must have been commercial. Residential appraisals are not that much.

Yes, it was commercial. Low 7 figures.

Yeah that is normal market rate. More work goes into it than you think. Commercial appraisers often get deposed if things go wrong. You will go walk the comps and talk to other recent buyers and owners, research the industry, decided on appropriate approaches for valuations etc...etc...etc...about 2 weeks and the appraiser is only getting a percentage if they work for someone else.

$5,000? That's ridiculous. When I had my own law practice I'd hire appraisers occasionally and my guy charged $400 and he actually went inside the place.

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