Hopefully the internet will make it possible for folks to buy homes without paying 5 or 10 thousand dollars to a real estate agent, who will add less and less value for home buyers in the future.
FSBO's (for sale by owners) will NEVER take the place of realtors. But I wish they would.
I've bought too many properties (or tried to buy them) on FSBOs where I've had a great deal of difficulty trying to bring the expectations of the seller down to some planet I recognize as part of our solar system.
Saw a property 2 weeks ago. 4 acres, in Devon, PA. Nice lot. House was a tear down. Owner wanted 1.25M for it and RECOMMENDED tearing down the house because of all the problems with it. He'd lived there 40 years and if he made any improvements during that time, they sure weren't visible to me.
So, how do I tell an owner who thinks he owns the last lot on this planet that he's priced his property at approximately $306,500 PER ACRE for a tear down? Would he listen to me? Would he care? Would he wonder if I paid his asking price or any amount close to it that I would never get my money out of it? And then build another house at $150 per sq. ft, say $900,000? So, I've got over $2M invested in 4 acres that I can call my own. Would that be a better investment than the same in ICGE? Which has the greater risk? Would it be better to buy 1 mile down the street for half the price?
It is certainly true that in hot markets, realtors don't earn much of what they are paid (realtors, please don't take offence). But in situations where there are wild swings between buyer/seller valuations (not at all unlike this stockmarket), having a realtor help bring an owner who lives on some other planet back to earth is probably worth the $$$$$$.
And it's OK if you disagree...
Best regards,
Mark A. Peterson |
