Comments on: A 13.6% Cobroke You Aren't Supposed to Know About http://housingdoom.com/2006/11/10/136-cobroke/ Fri, 18 May 2012 02:39:21 +0000 hourly 1 http://wordpress.org/?v= By: NVmike http://housingdoom.com/2006/11/10/136-cobroke/#comment-1891 NVmike Mon, 13 Nov 2006 01:05:26 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1891 You bubbleheads are all wrong! No one's desperate, this is a great time to buy OR sell a home (didn't you see the ad?), the worst is behind us and that wasn't really an iceberg we just ran into. Sure, the ship may be listing slightly, but it'll soon be upright again. Just wait 'til next year! You should trust me. Why would I lie? It's not like I make money by encouraging you to buy and sell homes during inopportune times. Sign me, Chief Economist of the S.S. Titanic You bubbleheads are all wrong!

No one’s desperate, this is a great time to buy OR sell a home (didn’t you see the ad?), the worst is behind us and that wasn’t really an iceberg we just ran into.

Sure, the ship may be listing slightly, but it’ll soon be upright again. Just wait ’til next year!

You should trust me. Why would I lie? It’s not like I make money by encouraging you to buy and sell homes during inopportune times.

Sign me,
Chief Economist of the S.S. Titanic

]]> By: twist http://housingdoom.com/2006/11/10/136-cobroke/#comment-1890 twist Sun, 12 Nov 2006 22:12:30 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1890 NVMike- You might almost think sellers were getting desperate, wouldn't you? NVMike-

You might almost think sellers were getting desperate, wouldn’t you?

]]> By: NVmike http://housingdoom.com/2006/11/10/136-cobroke/#comment-1889 NVmike Sun, 12 Nov 2006 20:12:17 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1889 13.6%? Peanuts! A 20% cobroke is exposed over at BloodhoundBlog: http://tinyurl.com/yzz5oe "I searched our MLS yesterday, and found a co-broke of 20%! New construction 4 bed 2.5 bath listed at $270K. ... It’s no typo… the listing agent spelled it out in the public remarks." 13.6%? Peanuts! A 20% cobroke is exposed over at BloodhoundBlog: http://tinyurl.com/yzz5oe

“I searched our MLS yesterday, and found a co-broke of 20%! New construction 4 bed 2.5 bath listed at $270K.
…
It’s no typo… the listing agent spelled it out in the public remarks.”

]]> By: Old Mike http://housingdoom.com/2006/11/10/136-cobroke/#comment-1888 Old Mike Sat, 11 Nov 2006 23:25:15 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1888 As intelligent consumers we can fix this problem. First, given the spread of such "arrangements" whenever I am using a "buyers agent", (or any agent for that matter since listing agents in some states feel free to say they represent everybody) I tell them clearly at the outset that I will require them to disclose the basis of and amount of all compensation associated with anything they show me before I make an offer and if there is more than the standard commission offered I want to know it at the showing. If they are either dumb or think I am dumb, or both, they will say something like "don't worry about it the seller pays me". If they say this then it is much like house training a new puppy. I look them straight in the eye and say: "don't be silly, I am the only one bringing any money to this transaction so I really pay EVERYBODY. Are you really trying to convince me that the amount of transaction costs will not affect what the seller is willing to take?" If I get any further argument, I walk away, they are officially a waste of skin representing only themselves. If they say ok, then when I make an offer I make it an explicit writtten condition that total commissions and other compensation paid shall not exceed x%. Despite what an agent might say, I do not know of any rational seller that would reject this condition in an offer, since it protects both buyer and seller. In theory if a seller was willing to offer the higher co-broke, any amount in excess of x% should flow to me, the buyer, in a price reduction. If the seller is a builder trying to avoid showing the "real price", perhaps because prior or subsequent buyers of the same type of house would claim the right to a similar reduction, I am not sure I would even consider doing business with that kind of seller at any price. It looks too much like an undisclosed inducement to "my agent" designed to make the agent fail to look out for my best interest and to allowthe seller to avoid treating other buyers fairly. How could you ever trust such a seller, or an agent who would show you such a property without first telling you about the offered inducement? This is truly disgusting!!! Pour it on Twist, this issue has legs. As intelligent consumers we can fix this problem. First, given the spread of such “arrangements” whenever I am using a “buyers agent”, (or any agent for that matter since listing agents in some states feel free to say they represent everybody) I tell them clearly at the outset that I will require them to disclose the basis of and amount of all compensation associated with anything they show me before I make an offer and if there is more than the standard commission offered I want to know it at the showing. If they are either dumb or think I am dumb, or both, they will say something like “don’t worry about it the seller pays me”. If they say this then it is much like house training a new puppy. I look them straight in the eye and say: “don’t be silly, I am the only one bringing any money to this transaction so I really pay EVERYBODY. Are you really trying to convince me that the amount of transaction costs will not affect what the seller is willing to take?” If I get any further argument, I walk away, they are officially a waste of skin representing only themselves. If they say ok, then when I make an offer I make it an explicit writtten condition that total commissions and other compensation paid shall not exceed x%. Despite what an agent might say, I do not know of any rational seller that would reject this condition in an offer, since it protects both buyer and seller. In theory if a seller was willing to offer the higher co-broke, any amount in excess of x% should flow to me, the buyer, in a price reduction. If the seller is a builder trying to avoid showing the “real price”, perhaps because prior or subsequent buyers of the same type of house would claim the right to a similar reduction, I am not sure I would even consider doing business with that kind of seller at any price. It looks too much like an undisclosed inducement to “my agent” designed to make the agent fail to look out for my best interest and to allowthe seller to avoid treating other buyers fairly. How could you ever trust such a seller, or an agent who would show you such a property without first telling you about the offered inducement? This is truly disgusting!!! Pour it on Twist, this issue has legs.

]]> By: twist http://housingdoom.com/2006/11/10/136-cobroke/#comment-1887 twist Sat, 11 Nov 2006 06:32:29 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1887 Jungleman606- Because I promised my source to leave the broker out of it, I purged the MLS number, broker name and address from the ad before posting it. I looked it up on Realtor.com though- the photo doesn't look near as good as the picture. I have the feeling that any realtor who talks someone into paying that much for this home is a heck of a salesperson- maybe on that basis we can figure they "deserve" their $75K. (Then again maybe not) Jungleman606-

Because I promised my source to leave the broker out of it, I purged the MLS number, broker name and address from the ad before posting it. I looked it up on Realtor.com though- the photo doesn’t look near as good as the picture. I have the feeling that any realtor who talks someone into paying that much for this home is a heck of a salesperson- maybe on that basis we can figure they “deserve” their $75K. (Then again maybe not)

]]> By: jungleman606 http://housingdoom.com/2006/11/10/136-cobroke/#comment-1886 jungleman606 Sat, 11 Nov 2006 03:32:12 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1886 What's the address of this splendid investment? What’s the address of this splendid investment?

]]> By: twist http://housingdoom.com/2006/11/10/136-cobroke/#comment-1885 twist Fri, 10 Nov 2006 16:05:51 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1885 Techscan- It's a good thing we know those illegal appraisals are hard to come by! : ) Techscan-

It’s a good thing we know those illegal appraisals are hard to come by! : )

]]> By: techscan http://housingdoom.com/2006/11/10/136-cobroke/#comment-1884 techscan Fri, 10 Nov 2006 13:07:07 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1884 $475,000 house, $75,000 comission -> 15.8%! All you need is an illegal appraisal that matches. $475,000 house, $75,000 comission -> 15.8%!

All you need is an illegal appraisal that matches.

]]> By: jan-martin feddersen http://housingdoom.com/2006/11/10/136-cobroke/#comment-1883 jan-martin feddersen Fri, 10 Nov 2006 12:48:12 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1883 this graph fits to this topic. sorry if postet before http://immobilienblasen.blogspot.com/2006/11/special-incentives-for-real-estate.html have a nice weekend this graph fits to this topic.
sorry if postet before

http://immobilienblasen.blogspot.com/2006/11/special-incentives-for-real-estate.html

have a nice weekend

]]> By: twist http://housingdoom.com/2006/11/10/136-cobroke/#comment-1882 twist Fri, 10 Nov 2006 08:04:04 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1882 Jan Marin, I'm glad I'm not the only one that thinks so. I've been surprised that more people haven't been concerned about the implications of these cobrokes. Jan Marin,

I’m glad I’m not the only one that thinks so. I’ve been surprised that more people haven’t been concerned about the implications of these cobrokes.

]]> By: jan-martin feddersen http://housingdoom.com/2006/11/10/136-cobroke/#comment-1881 jan-martin feddersen Fri, 10 Nov 2006 07:33:43 +0000 http://housingdoom.com/2006/11/11/136-cobroke/#comment-1881 wow!!!! wow!!!!

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