All Forum Posts by: Victoria S.

Only an excellent idea If you plan on leaving the property to your children when you pass away.

The long term cap gain tax rate is 0 up to $77k in income.  12% or so is avg.

Depreciation recapture is far less tax friendly when you sell. More like 25%. Converting what would be cap gain later to depreciation recapture is short-sighted for most. 

@Victoria S.

Forgive my confusion, could you elaborate at all?

You mean the listing agent reaches out to you before anyone else, and since you are a non-represented buyer, asks you to let them keep the half of the commission that the home owner would be paying anyway?

@Victoria S. I think you're being mislead.

1. Seller brings you a deal - how do sellers know you? When I'm negotiating with a seller my own deal - there is no comissions involved, even if I have to tell by law that I'm a real estate broker. If I'm soliciting a deal on behalf of my client- there is some comission, even if a buyer pays it. Nobody works for free

2. Listing agent calls you about the deal - the comissions already included into the contract - it's negotiated between the seller and the listing agent. If you think you're getting part of comission - think again. You're getting discount from the property price, not comission, and that discount was negotiated by the listing agent because you're not represented, you don't know better and most likely cash buyer (no bank inspections).

Disclaimer: I'm not soliciting any clients, just describing how the system works. I'm not trying to persuade you to use your own agent - most often listing agent is better than a new agent, who is not much help.

However, listing agent ALWAYS owes fiduciary duty to his/her client and working in the sellers best interests....while to a buyer he owes only to be honest and disclose only safety issues, nothing else. 

If you'd found a good agent, working with you - that would be an extra benefit free for you.

Good agent is worth all the money - they can negotiate much better deal because they know their local market. Don't kid yourself that you're getting better without any representation......unless you're an agent in another state and do it for living.

Very cute statement. If you buy without an agent, you are denying freebies - the buyers agent doesn't cost you anything.

If you go with a listing agent, you don't get anyone by your side but the seller  still pay both sides of comissions. Really funny how people think.

Comissions are negotiable but great agent do not decrease their comissions. If they can't negotiate their own comissions, how they are going to negotiate anything for their client?!? 

In each area comissions kind of expected, like these proverbial 6% (3%+3%).

However, it's 7% on first $100K, 5% on next $400K, 4% on next $500K etc.

Sometimes it's 6% flat, 6/5/3......listing agent could get themselves 5% and leave 2% to the selling agent (and try to find a buyer by himself). There are plenty of structure in comissions, however, any market %% or $$ are acceptable - just try to negotiate. Only fixing the comissions are illegal (agreement to keep them fixed to avoid competition).