Disqus - Latest Comments for Mike Pennington

Re: Is There a Financial Benefit to Using a Realtor?

Mike Pennington — Wed, 30 Sep 2009 14:48:51 -0000

Rob-

Preface: Our profession does need a makeover and many of us are continuing to improve our value proposition but there are a couple of big assumptions used in the article to draw some unconvincing conclusions here:

#1) All transactions include a 6% broker commission.
Not sure about everyone else, but 6% listings are not the norm for any transaction that I am familiar with. 6% is more like a starting point. Therefore, the authors may have needed to read more than the FSBO website to gather data on how much Realtors charge for services. Where else could they have gotten this data for 15,000 transactions? Nowhere except, The HUD closing statement. Anywhere else is just speculation. As a broker, is there any firm averaging 6% GCE? (3% for each side)

#2) All of the FSBO transactions were totally brokerless.
An FSBO'er may be able to list a house on the MLS for $150 but what do they pay when a Broker comes calling with a willing buyer? 2.5%? 3%? 4%?
I'll show FSBO properties if the house seems to be a comparable choice. However, I won't do it unless the buyer has promised to pay my fees or the seller has agreed, in writing.

And, for the following reasons, FSBO does not scale to the masses. DIY Sellers and DIY buyers love to haggle with each other. Just like there are those who like to yard sale. In my experience, most buyers have no interest in this. Why do buyers hate it so much when the sellers do not leave the property during viewings? Further, is this uneasiness supposed to go away because the home is FSBO and not broker listed? I think not.

Re: Cherokee Co. Considers Floating Homestead

Mike Pennington — Thu, 10 Jul 2008 14:51:27 -0000

I am curious is this will act as an incentive for fixed income retirees to move to Cherokee county. Any thoughts?

Re: Housing and Economic Recovery Act of 2008

Mike Pennington — Wed, 06 Aug 2008 13:03:48 -0000

Sounds like a tax increase to me. Brad, I am glad you published this excerpt. I have heard very little of this through conventional media sources. Someone notify Clark Howard!

So, in short, for those of our clients who live in a home 3 to 4 years, they will absolutely have a tax liability upon the sale of their home.

Re: http://maxsell.net/4-reasons-to-buy-a-home-before-october-1st-2008/

Mike Pennington — Wed, 03 Sep 2008 16:52:18 -0000

As I understand it, you must be approved for a mortgage and under contract on a home by that date. There has always been some confusion on whether you needed to close by that date though. As mortgage guidelines are changing daily, I would contact 3-4 mortgage bankers to discuss what they are offering. Not all lendors may be working this type of program. If you need a source to call, please e-mail me directly and Good Luck.