James

Finance Guru, formerly CFO @NSC_Sports, Entrepreneur, Sports Enthusiast, Packer Season Ticket Holder, B.A.P. Holder, Man of many dreams

[James @Real_JamesN]

@hey_madni These aren’t brutal for a number of reasons but especially because they aren’t directed at a specific person but a large group.

[James @Real_JamesN]

@RobGreyber when is Vacasa going to take a sales first approach to their business? Watching your company is like watching paint dry….slowly going out of business. It would be nice to see some entrepreneurial spirit or some actual problem solving.

[James @Real_JamesN]

Selling your home and whether to use an agent is dependent on multiple factors. Even then I negotiated my rate. You always have options.

[James @Real_JamesN]

There are quite a few assumptions here and no doubt the business process will evolve. Ultimately, more choice is better and realtors now have to opportunity to further differentiate from each other. I’ve sold a home on my own and with an agent. Both went well.

[Alan Corey | Atlanta Real Estate Expert @RealEstateMaxi]

Killing the 6% commission is dumb.

‣Sellers make more money with it.
‣Buyers can buy more home with it.

Here's why:

Imagine Joe Buyer has $100k to buy Sue's house for a a 20% down payment on a $500k property.

House is listed with 6% seller paid realtor commissions.

Joe can put $100k down payment on a home with a $500k list price.

The realtor commission is paid by Sue so he doesn't have to worry about it.

However, really it's worked into the price of the house and financed in the mortgage and paid by Joe anyway.

When Joe buys a house, he brings the down payment and the lender's money.

Joe brings $100k cash + $400k mortgage = $500k.

Sue gets $500k - $30k (6% comm) = $470k.

Sue is not bringing money to the closing table, Joe and the lender are.

If Sue's house gets in bidding war, Joe could actually bid and win it for even $550,000 by putting 15% down instead of 20% if it's his dream house.

Or Joe could even switch to a $1M house with 10% down payment.

All in all, he has options as a buyer. During a housing shortage, you want buyers to have options.

Alternatively, Joe has to pay this agent.

Joe has to have money to pay an agent so he either chooses to have no agent and struggles to get under contract.

Or Joe takes that fee from this down payment budget to hire an agent.

Now Joe has to buy a lower priced home. He's also capped out earlier on bidding wars.

If Joe wants to try to put 20% down to start, he's only going to look at $450k homes and bid them up to about $490k.

Chances are also lower that a $450k home will be his dream home over a $500k home.

He will most likely never see Sue's $500k house listing that he would have paid $550k for.

A $550k offer from Joe would have the lenders indirectly pay the agents $33k and Sue would net $517k.

Sue however is "saving money" on paying both agents, which actually reduces the buyer pool and softening her chances of a bidding war frenzy on her home.

Sue may get only one offer now or maybe multiple offers, but they may be not as strong as Joe's would have been.

Fewer offers mean more risk with possibilities like those other offer have:

‣ Lower down payment
‣ Appraisal concerns
‣ Longer closing
‣ More repairs

It's just fewer offers to choose from so there is going to be more risk to Sue and she has less negotiation power.

Or Sue's home stays on the market longer to find a better buyer or offer.

Sue got $517k before when paying 6% agents and Joe was able to fall in love with it.

Sure, Sue may still get a bidding war. But Joe's not in it, so Sue accepts $530k for another buyer.

Sue then pays 3% to only her listing agent and she nets $514k doing it this way.

This scenario is ultimately not good for:

‣ Joe who doesn't find his dream home
‣ Sue who doesn't get top dollar
‣ Agents who don't close
‣ Lenders who lend less

TLDR:

Sellers get lower risk and top dollar when paying buying agents to bring buyers that are fine indirectly paying the commissions anyway.

[Alan Corey | Atlanta Real Estate Expert @RealEstateMaxi]

Killing the 6% commission is dumb.

‣Sellers make more money with it.
‣Buyers can buy more home with it.

Here's why:

Imagine Joe Buyer has $100k to buy Sue's house for a a 20% down payment on a $500k property.

House is listed with 6% seller paid realtor commissions.

Joe can put $100k down payment on a home with a $500k list price.

The realtor commission is paid by Sue so he doesn't have to worry about it.

However, really it's worked into the price of the house and financed in the mortgage and paid by Joe anyway.

When Joe buys a house, he brings the down payment and the lender's money.

Joe brings $100k cash + $400k mortgage = $500k.

Sue gets $500k - $30k (6% comm) = $470k.

Sue is not bringing money to the closing table, Joe and the lender are.

If Sue's house gets in bidding war, Joe could actually bid and win it for even $550,000 by putting 15% down instead of 20% if it's his dream house.

Or Joe could even switch to a $1M house with 10% down payment.

All in all, he has options as a buyer. During a housing shortage, you want buyers to have options.

Alternatively, Joe has to pay this agent.

Joe has to have money to pay an agent so he either chooses to have no agent and struggles to get under contract.

Or Joe takes that fee from this down payment budget to hire an agent.

Now Joe has to buy a lower priced home. He's also capped out earlier on bidding wars.

If Joe wants to try to put 20% down to start, he's only going to look at $450k homes and bid them up to about $490k.

Chances are also lower that a $450k home will be his dream home over a $500k home.

He will most likely never see Sue's $500k house listing that he would have paid $550k for.

A $550k offer from Joe would have the lenders indirectly pay the agents $33k and Sue would net $517k.

Sue however is "saving money" on paying both agents, which actually reduces the buyer pool and softening her chances of a bidding war frenzy on her home.

Sue may get only one offer now or maybe multiple offers, but they may be not as strong as Joe's would have been.

Fewer offers mean more risk with possibilities like those other offer have:

‣ Lower down payment
‣ Appraisal concerns
‣ Longer closing
‣ More repairs

It's just fewer offers to choose from so there is going to be more risk to Sue and she has less negotiation power.

Or Sue's home stays on the market longer to find a better buyer or offer.

Sue got $517k before when paying 6% agents and Joe was able to fall in love with it.

Sure, Sue may still get a bidding war. But Joe's not in it, so Sue accepts $530k for another buyer.

Sue then pays 3% to only her listing agent and she nets $514k doing it this way.

This scenario is ultimately not good for:

‣ Joe who doesn't find his dream home
‣ Sue who doesn't get top dollar
‣ Agents who don't close
‣ Lenders who lend less

TLDR:

Sellers get lower risk and top dollar when paying buying agents to bring buyers that are fine indirectly paying the commissions anyway.

[James @Real_JamesN]

Just one more reason you shouldn't follow "expert" recommendations too closely. One of the many reasons is you don't know their expectations or goals. If they don't align you will be disappointed.

https://t.co/4g4A1dcKTk

[James @Real_JamesN]

@Blind__Luck It’s because of surge season. Hospitals have a seasonality to them. The traveling nurses help them flex during high capacity times of the year…most notably the winter RSV/Flu season.

[James @Real_JamesN]

@nftnow If you look at the previous page this appears to me to be related to brokers. Correct me if I'm wrong here....It seems like the law is saying Broker's have additional reporting requirements.

[Now Media @nowmedia]

A new U.S. crypto tax law has taken effect in 2024.

If you receive $10K+ in crypto, you must report it to the IRS within 15 days or face a potential felony.

This includes the sender’s name, address, and SSN.

CoinCenter has filed a lawsuit challenging its constitutionality.

[Now Media @nowmedia]

A new U.S. crypto tax law has taken effect in 2024.

If you receive $10K+ in crypto, you must report it to the IRS within 15 days or face a potential felony.

This includes the sender’s name, address, and SSN.

CoinCenter has filed a lawsuit challenging its constitutionality.

[James @Real_JamesN]

@LilyBugMermaid Otherwise, a battery pack is amazing to charge your phone on the go….walking the dog, forgot a wall charger, delayed flight, etc.

[James @Real_JamesN]

@LilyBugMermaid If he flies a lot a Bluetooth transmitter would work great.

[James @Real_JamesN]

@YieldOnCostSTR The current CEO Rob Greyber is a classic corporate climber working for established orgs that is probably not a great fit for where this company is and needs to go.

[James @Real_JamesN]

@YieldOnCostSTR Thanks for the analysis. I’ve been following this company for a while. Disappointed in their leadership team as they have almost exclusively focused on cost reductions with no strategy of revenue growth….

[James @Real_JamesN]

@YieldOnCostSTR They don’t seem to have a plan at all. No marketing, no new programs, and no robust sales funnel. Seem content to try and survive. This stock is going to zero…

[James @Real_JamesN]

@BullsApesProj finally got my God Ape. Must say I'm am beyond thrilled! Took some time and learning the game through trial and error but love the end product.

[James @Real_JamesN]

Reading it, you'll notice that what sets @beeple apart, as with all great titans in their respective industries, is the drive to always push boundaries and reset the standards. Complacency is the enemy of progress!

[James @Real_JamesN]

Quick article from https://t.co/MuQrsICTwy talking with @beeple and Collector @kukulabanze about digital arts evolution.

https://t.co/Y9apmso2qO

[Mr_ice @JhohanRamirez1]

Just pick up this two bull people crazy selling @BullsApesProj so cheap up to 19 bulls now

[James @Real_JamesN]

@AToD_BAP GM....enjoy the day and give me 20!

[James @Real_JamesN]

@AToD_BAP Doesn't good always prevail over evil?