While we are talking about Real Estate commissions let’s talk about value. Just because you pay a certain price for a property, or just because other properties sold in the area for a certain price, doesn’t translate into a value.
When an appraiser comes out there are things they look at that add, or subtract from the value of Comparable Properties. Comparable Properties is kind of a meaningless term. I use town homes as my best example. Comparable Town Homes can be just as worthless as the one that is being appraised. Adding value for a view doesn’t translate into a property value. The view has a value, but the property is questionable. I’m told I may need to adjust my prejudice against town homes as time goes on.
The same is true in a property with obsolescence. The interior may be gorgeous, but the systems may need updating. One classic example is when the appraiser, or home inspector notes there is low water pressure in a newly remodeled kitchen, or bathroom. It could be caused by a lot of things, but there is a good chance it’s the pipes. So the remodel is actually a liability to getting at those pipes.
A buyer’s agent should know property value. They should know the market place, but they should also know what has value, and what to avoid. You learn that by looking at houses, closing transactions, and getting feed back. It helps to have taken apart a few places.
People in the Real Estate business, lifers, are worth the time to find. All agents charge the same, but a few have value.
About David Losh
In 1984 I got my Real Estate license and worked in a small company called Advance Properties. The owner was extremely interested in Real Estate, building, and land development. Most of his work was concentrated North of Seattle. Since the 1970s I had worked for Real Estate agents in Seattle as a contractor, mostly preparing properties for rent, and sale.
After a few years my skill level increased considerably concerning land use, building code, and development practices. Escrow, and lending offices were housed at the Advance Properties building so it was easy to get involved in all aspects of Real Estate. It was very much a family owned, and operated business.
Over the years my Real Estate license has been at a variety of Real Estate companies, and offices. Nothing compares to those early years, or that sense of family. Real Estate has gotten to be corporate owned.
My hope with this blog is to share with you some of the things I've learned. If you have Real Estate needs, or want contractor help, I refer freely to what best suits you. If you should choose to work with me you'll find a great resource.
My Real Estate license is at Skyline Properties in Northgate. Skyline is a locally owned company that is a desk fee office. There is a wide variety of diverse agents. It helps me with some of the other projects that I have, and mentoring that I do, to be able to work with people from other cultures.
Here in Seattle we are close to Vancouver BC and are the gateway to China. Boeing has a great trade relationship with China, as does Microsoft have with all of Asia. We are a culturally diverse community, and it helps me to be invlolved.
