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Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks

 
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Old 09-12-2019, 04:31 AM   #1
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Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


“The stakes are big: $74 billion of real-estate-agent commissions were wasted in 2018”



https://www.marketwatch.com/story/ho...cks-2019-09-11
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Old 09-12-2019, 04:36 AM   #2
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


Knowing your great distaste for RE agents...

It's gonna happen tho.

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Old 09-12-2019, 05:07 AM   #3
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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Knowing your great distaste for RE agents...



It's gonna happen tho.
Honestly most bring it on themselves

I can see this being an issue in a recession lol, but agree its coming

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Old 09-12-2019, 06:05 AM   #4
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


So cutting out the agent also makes it more affordable?

The other day at a take out I heard a woman teacher telling the guy behind the counter how she pays her own salary. That 87% of her taxes go to the state education system.
Then I read about shortages in construction and affordable housing..... Well if we weren't importing cheap labor to reward high tax payers I bet a shortage brings people back to the trades with rising wages....plus old housing stock would become less expensive.
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Old 09-12-2019, 06:31 AM   #5
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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So cutting out the agent also makes it more affordable?

.
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Old 09-12-2019, 06:48 AM   #6
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What? I think Johnson posted a story not long ago about realtor commissions being reduced or something to that effect.

Rather than address the elephant, change the room mentality.
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Old 09-12-2019, 06:58 AM   #7
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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What? I think Johnson posted a story not long ago about realtor commissions being reduced or something to that effect.

Rather than address the elephant, change the room mentality.
What is the elephant?
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Old 09-12-2019, 07:04 AM   #8
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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So cutting out the agent also makes it more affordable?

.
In the end.

By not paying a commission at the sell, the seller will have more money in his pocket for the buy.

If I sell a house for $500K and avoid 5% in commission that leaves me with $25K more in my pocket to put towards the next house I buy. The next house might be the same price either way but I have more money because the transactions are cheaper. A seller might even sell for a little less knowing he’s not paying a quarter of his annual salary to some lazy good for nothin hack.
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Old 09-12-2019, 07:08 AM   #9
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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What? I think Johnson posted a story not long ago about realtor commissions being reduced or something to that effect.

Rather than address the elephant, change the room mentality.
This is where the seller is affected way more than the buyer, regardless of the market price of the property. Commission is payed by the seller.

The real estate industry tries to convince/scare/persuade sellers to keep using them in order to sell at the "best price", but it's basically not true anymore. They don't have a lock on the MLS like they used to.

I recently did a budget kitchen reno for a home sale. The guy used some kind of discount FSBO listing service. House still sold at market rate....no discount for the buyer whatsoever.

I guess if you are stuck with a lemon and desperate to sell, "maybe" you convince yourself to give some kind of incentive, but that's not typical.

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Old 09-12-2019, 07:11 AM   #10
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


All baked in?
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Old 09-12-2019, 07:16 AM   #11
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


Zestimates are often wildly inaccurate, though amusing. If you bought sight-unseen based on them, you'd get stuck for sure. Derelict properties and bad lots are overvalued, and vice versa.
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Old 09-12-2019, 07:32 AM   #12
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


Zillow estimates are as misleading as social media advertising contractors
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Old 09-12-2019, 07:40 AM   #13
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


Look at what Uber did to the taxi companies...it's coming not only in real estate but also in the financial advisor space. Working with your hands has the benefit of not being able to be replaced by AI...yet!

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Old 09-12-2019, 07:57 AM   #14
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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Zillow estimates are as misleading as social media advertising contractors
Zestimate had our house at a value of 275k. We put it up for sale for almost twice that and have had a couple offers at near asking price. Then we go and look at the Zestimate now? Above asking price.

Neighbors are happy though, their properties doubled on the Zestimate and stupid banks will often loan according to them.

It doesnt account for all the little things like a shop with it's own panel or an insulated barn with sun shades. Kinda dumb to think they represent anything accurately other than cookie cutter houses in cookie cutter neighborhoods.
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Old 09-12-2019, 08:01 AM   #15
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


A willing and capable buyer sets the price of a home.
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Old 09-12-2019, 08:02 AM   #16
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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Look at what Uber did to the taxi companies...it's coming not only in real estate but also in the financial advisor space. Working with you hands has the benefit of not being able to be replaced by AI...yet!
My financial advisor brought this up recently. Luckily he works for wealthy people and then take some poor suckers like me as a hobby I guess. Lol. People of means will not but using internet advisors until millineals inherit their parents money. Lol

He also does a lot more than financial advisory for them. He makes sure that when they need a contractor, by car, sell a house or buy one, taking a trip, booking accommodations even, it has people for everything. Kid gloves

He has a set dollar amount you have to have to invest with him as a minimum for him to take you on as a client

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Old 09-12-2019, 08:13 AM   #17
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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My financial advisor brought this up recently. Luckily he works for wealthy people and then take some poor suckers like me as a hobby I guess. Lol. People of means will not but using internet advisors until millineals inherit their parents money. Lol

He also does a lot more than financial advisory for them. He makes sure that when they need a contractor, by car, sell a house or buy one, taking a trip, booking accommodations even, it has people for everything. Kid gloves

He has a set dollar amount you have to have to invest with him as a minimum for him to take you on as a client

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Seems like he offers more value than most financial advisors. I am too cheap to pay anyone to invest for me, every % of expense is another paper cut.
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Old 09-12-2019, 08:31 AM   #18
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


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Seems like he offers more value than most financial advisors. I am too cheap to pay anyone to invest for me, every % of expense is another paper cut.
Hes not a normal advisor by any means. Hes probably the only person I have ever seen wear leather driving gloves in real life lol.

Most of his stuff is in a fund, they do all kinds of stuff but stocks are only a small part. I can't wait till I stop spending money on stupid stuff like office buildings and rentals and throw him soon real coin to try to play with lmao

Just like an accountant or lawyer, i like to know the basic smell like to hire a pro.

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Old 09-12-2019, 09:45 AM   #19
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


Story said they charged 3% on the buy and 3% on the sell, plus additional fees.

Sounds like a real estate agent to me.....
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Old 09-12-2019, 10:04 AM   #20
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Re: Why Buying And Selling A House Could Soon Be As Simple As Trading Stocks


No need to use an REA, at least in Texas. SNL just sold their rent house without a listing agent or buyer's agent. Win win for both parties, buyers only had to pay the closing cost of 500 bucks to the title company. He got more cash in his pocket and was able to drop the selling price a little for the buyer.

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