“But my question to you is, what fee do you charge your employer that you sit around all day and question everyone else’s job? What value are you providing your employer / client by attempting to hijack every blog in Charlottesville? Jim, after all, is using this blog for work. You seem to be using it to waste time at your office.”

How brave of you to post this anonymously I suppose you are afraid that your employer would know who you are, or are you just too ashamed of your own comments? As for me, I work for myself, so I authorized myself to be able to do this… let me check again… yep I am still authorized to do this!

Hijack is a strong word, if you mean participate and ask direct questions that tend to stir the status quo of the Cville Realtor doldrums that causes them to want to post snide comments anonymously, sure that happens… doesn’t it?

Try to refocus and realize that my discussion is about real estate here in Charlottesville. By me asking Jim what he charges I look at it as an opportunity for him to earn my business, and so should you.

I pay an attorney $150 for contract review and I pay a home inspection fee of $500 (it varies on the size and complexity of the property). If I felt that Jim provided a service that cost me less than that and the quality was better I would be all for retaining his services.

As I have stated on various Blogs I think Jim is one of the good guys. He uses data to look at the market, he tries to understand his clients needs, and he puts content out there… and not anonymously!

Sure I push him hard for justification, but so what? That’s the point of having a blog.

Wes – The listing agent can always negotiate out the buyer’s agent fee and refund it to the broker if they want to. In fact Jim and a couple of other realtors said that is exactly what they would do if dealing with an unrepresented buyer like myself.

Jim – As usual you know I am just asking questions that Buyers want to know, but are sometimes hesitant to ask. Obviously the fear of being cowardly attacked anonymously on the Internet is bound to deter a few.

I think you provide a good service to buyers. Many buyers are not as tuned in to the market as I am so I don’t need all the trimmings that you provide. That doesn’t make what you provide bad, in fact many buyers out there need your services.

I have told many people that if they need to use a realtor they should look at contacting you. God knows there are enough bad realtors in this market.

If you don’t feel that I add value to the board just ask me to leave.

Scott, in fairness, I’ll give you a rebuttal and then politely and respectfully ask that we all move on lest this gets more out of hand … per my policy.

Wes – and that is why we need to divorce commissions, where the buyer pays the buyer broker and the seller pays the sellers’ agent – this commingling of funds mixes loyalties – and the perception of said loyalties.

I was at a meeting this morning where buyer’s agent Realtors get greater commissions if they sell more of this particular builder’s houses … I asked if I could take (assuming I sell one or more) my “bonus” and credit it back to my buyer client … having my fees set by another to whom I do not owe any loyalty is, in my opinion, wrong.

And yes, yes you can negotiate that fee out – I’ve done it.

Scott – I am glad to discuss my fees with any potential clients any time, but as each client is different, there is no “one size fits all” response or fee.

The seller pays the buyer agent fees not the purchaser. You cannot negotiate out the Buyer Agents fee from the seller as this is a contractual agreement between the seller and the listing broker.

I see them all the time and many of them fall into the trap and most pay way to much because they think they know it all. Then they brag about the “deal” they got because they bought without a Realtor. It is almost comical.

And what do you charge the client for this service?

Selections – helping buyers decide what options to choose so that they 1) don’t choose something that only they would like and 2) don’t price themselves out of the neighborhood.

Simply saying to get a home inspection.

Advising on closing dates, penalty clauses.

Knowing who the good builders are (and who aren’t).

Being the sounding board, the person whom the buyers trust to ask their questions who they know will either know or find the answers – a lot of buyers have neither the time nor the energy to research every facet of their decisions before walking in. And sometimes it’s a matter of my saying “don’t do this.”

You said:
“Here’s the thing – if I’m going to make dinner, I could very well go to the Main Street Market for the fish, the City Market for veggies, Veritas for wine, Albemarle Baking company for the bread and so on and so on. Realistically, I’m going to go to either Harris Teeter or Kroger to get everything in one place – it’s not a direct analogy, but it’s an example to show that in new construction, Realtors are as much chefs as they are trusted representatives.”

Not to put too fine a point on it, but would it have been so hard to give me a real example (of the many you said there were) that had something to do with the value of a Realtor as opposed to an analogy that doesn’t make your case.

Because another way to look at your analogy is, if you can’t afford the best or don’t care to take the time to get the best you should use a Realtor. Basically think McDonalds even though you want fine dining.

I think this analogy works in response to this:

It seems to me that if there is a question regarding a builder and the construction, hire an architect for a review or you can have a home inspector look at it. If there is a question regarding the contract, get an attorney. I am still not sure what your average realtor is going to do other than suggest that. Especially since Realtors are very risk adverse in regards to getting sued when they swim out of their realm of expertise.

Here’s the thing – if I’m going to make dinner, I could very well go to the Main Street Market for the fish, the City Market for veggies, Veritas for wine, Albemarle Baking company for the bread and so on and so on. Realistically, I’m going to go to either Harris Teeter or Kroger to get everything in one place – it’s not a direct analogy, but it’s an example to show that in new construction, Realtors are as much chefs as they are trusted representatives.

Part of being a great Realtor is knowing whom to call. And when. It’s why I prefer my clients to use attorneys at closing instead of title companies – for the just-in-case scenarios.

Regarding my commission – I’m saying that what I negotiate with my buyer clients is between me and my clients.

Lastly, as a friend said today – don’t use an average Realtor. Use an exceptional one.

You know I am going to badger your for detailed examples, since there are so many right?

It seems to me that if there is a question regarding a builder and the construction, hire an architect for a review or you can have a home inspector look at it. If there is a question regarding the contract, get an attorney. I am still not sure what your average realtor is going to do other than suggest that. Especially since Realtors are very risk adverse in regards to getting sued when they swim out of their realm of expertise.

I doubt many realtors are an architect, builder, attorney, and realtor all in one. And if they were really focused on any of those other trades they would most likely be doing that as opposed to selling real estate.

Regarding the 3% commission are you saying that you would provide this service as a buyer’s agent and then wouldn’t require a commission to be paid from the builder for bringing the buyer?

Thanks for the comment.

First, I’m surprised at the assumption about the 3% commission.

There’s a whole lot more that goes into negotiating for a buyer in new construction. First and foremost, price … then guidance about what options to choose, answering questions – which seems simple, but is really quite a bit more involved – recommending things (sorry to be so unspecific, but there are so many “things” involved, from minutiae to penalty clauses) … the simple statement that a buyer should always get a home inspection is valuable …

And finally, in this market, attorneys that I know generally don’t make it a practice to know who’s a good builder and who’s not, where builders are building, where they’re likely to build …

As with anything, picking the right professional – who practices his or her respective profession every day – is key.

Great article!

In a situation like this, what additional help would a Realtor provide over an attorney?

It seems to me that an attorney worth his $500 should be able to work out the legalese better and cheaper than a buyer agent for a 3% commission.

Let me know if I am missing something…