Billy

Yes, interest rates will probably rise, or at least stay the same. However, the optimist in the last post failed to mention that this will continue to be one of the drivers of the housing slump..... he is right about an election not changing anything. Presidents have little to do with the economic cycle, nor are they supposed to. - Sat Aug 30 2008, 08:26

Interest rates rising will make a loan payments more for the same amount of money, but keep in mind that increasing interest rates also will drive the price of homes down - across the board. IMHO, February is probably a slow month where you could find some good deals. Good luck! - Fri Aug 29 2008, 16:44

You would probably be lucky to sell it for $280,000, but it doesn't hurt to ask the highest plausible amount that you think you can justify to a potential buyer. Remember, the buyer is going to have to pay a lot more in financing costs to buy your home - giving them a lot less buying power. Good luck! - Fri Aug 29 2008, 16:55

You don't need a mortgage broker, if you have already gone through BofA - although have you shopped around? I would write to agents in your area and have them send you a buyers contract. Look and compare, and then send back a revised contract, making the term of the contract 4 months, decreasing the commission/consideration paid to the agent, etc... You don't have to buy a REO property to get a good deal. In fact REO properties are shed from banks to RE agents, because the bank wants the property sold at the highest price possible in the market. There is too much hype about the REO properties IMHO, because in reality, you should be able to negotiate any property down to a fair price right now. If you don't like the agent you get, then fire them and tell them why you don't like them so they can do better for the next customer. Generally, there is a clause in the contract that says any party can terminate the agreement with a week notice or so.

Good luck Ivon. - Fri Aug 29 2008, 16:51

Most people doing this will cut out the middle man and negotiate with the banks themselves. The main entities doing this would be REIT's, etc.... good luck! - Fri Aug 29 2008, 16:38

J R, you are right. There is no guarantee that you will get paid on a listing. There is a pretty high chance though, considering most people selling or buying need to do it in a short time frame. Is the risk that you will not sell a house for a seller, or find a suitable house for a buyer so high to rationalize current commissions that are proposed by agents? The answer probably depends on what side you are on, the agent or buyer/seller side. Just like a seller 'asks' a certain amount for a house; real estate agents are 'asking' for a 3% commission on each side. That is the highest plausible amount they think they can get. It is up to the other party to re-anchor the price, just like an agent does in a RE negotiation if the price is too high. It is by far a prudent move for any buyer or seller to shop around for the best deal (not necessarily cheapest price).

What you just stated is that jobs you would not accept before, because they did not pay enough, defines something that is below your BATNA (best alternative to a negotiated agreement). You thought you were worth more. The same principal applies in the RE agreement. A few alternatives to a buyer are to hire a lawyer to negotiate a contract, build their own house, rent, or even make an offer on a house on their own (as long as they go through a reasonable process of records search, inspection, and negotiation). These alternatives provide a buyer or seller alternatives to using an agent, and gives the buyer/seller more power in the commission negotiation. - Sat Aug 9 2008, 20:17

Bill - not trying to slam you at all. However, the reality is that if an agent does not agree to a lower commission, effectively they are going to be out of a job. So, for an agent, is it a 30-40% paycut as you proposed happening to Sammy, or no job at all. - Sat Aug 9 2008, 08:54

Bill, How would you respond if your employer told you that you have no job at all? - Fri Aug 8 2008, 04:04

Definitely do it whether you are a buyer or seller. 6% of a home is a huge amount of money, and if you had to turn around and sell it a year later - you would already be 6% down just because of commissions you would have to pay. On $200,000, that is $12,000!!! Do you think it costs $6,000 to sell a home? or to show people homes? - Fri Aug 8 2008, 03:15