What Are The Different Fees Paid To Agents Versus Paid To Investors? | Written by Eugene Hoffman

What Are The Different Fees Paid To Agents Versus Paid To Investors?

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If you answered YES to any of these questions call us for some free advice.

You want to sell your home in Orlando and you are looking forward to putting a ton of cash in your pocket. But did you realize that selling your house may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus paid to investors…

It’s true… selling your home in Orlando can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want for you to know about the different fees you have to pay because this information may help you decide whether to work with a Realtor or to sell your house directly to an investor.

What Are The Different Fees Paid To A Realtor Versus Paid To Investors? — Agent Fees

A Realtor is a salesperson and they will try to find a buyer to buy your house. In order to do this, they will list your house in a listing service and use various marketing efforts to try and find a buyer.

So you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house, or about $6,000 for a $100,000). There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house(you may not be allowed to place a sign) or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they should tell you.

What Are The Different Fees Paid To Realtors Versus Paid To Investors? — Investor Fees

This is the part that surprises most house-sellers: for most investors, there are rarely any fees to cover. Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your house. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.

The One “Fee” You May Not Be Thinking Of

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How to Analysis an Orlando Wholesale Property | Deal Or No Deal Written by Eugene Hoffman

How to Analysis an Orlando Wholesale Property | Deal Or No Deal?

What is a Real Estate wholesaler? Do you have to be licensed to sale a property? Do wholesalers always inflate the property price they are trying to move? The wholesaler provides specialized expertise including marketing, negotiating, and contract knowledge.  Rehabbers don't always have advanced experience in these things and neither party needs to have a Real Estate license. Since a wholesaler has a contract they have an interest in the property and therefore he does not need to have a license. Often times, wholesalers have the networking and marketing skills that rehabbers and construction companies lack.

The concept of buying "wholesale" is not a new one.  It's been around for thousands of years and wholesaling has been brought into play in housing. Almost every business around - clothing, food, books, cars, electronics, coffee, and thousands more.  In real estate, the same principle applies. Finding a profitable project is definitely the most difficult part in a puzzle of steps to make a profit in rehabbing homes. A honest wholesales is worth their weight in gold if he or she finds high profit deals in volume. But why does it always seem that every listing states a slightly higher ARV and under-estimates the cost to properly repair?

Marketing is a time-consuming process. Rehabbing companies with professional and reliable people on staff need a reliable source of homes. Construction is much easier when a house is vacant.  It takes time, perseverance, and skill to tie up good deals at a discount repeatedly.  There is tremendous value in having someone else do all this work for you.

The Market has proved that there is a strong need for people who can track down profitable deals but why are all advertised listing both slightly over priced and the estimate for repairs under estimated? It is easy to wholesale a profitable deal in under five minutes with a couple of phone calls. The difficulty selling a house that needs tens of thousands in repairs is much tougher if the consensus is the Deal has slim profits.

Read on website. For Deals call 407-781-7312. Licensed

How to Find a Good Real Estate Agent in Orlando - Written by Eugene Hoffman

How to Find a Good Real Estate Agent in Orlando

Realtors follow the 80 /20 Rule. Twenty percent of the Realtors make eighty percent of the sales. Eighty percent are like the guy above in the picture.

Hiring a real estate agent in Orlando can be frustrating. So what are the steps on how to find a good real estate agent in Orlando?

Many local large real estate brokers will spend thousands of dollars each month to ensure that their agents are the most visible, whether it be online, in the Yellow Pages, or by erecting giant billboards in the most trafficked sections of Orlando.

However, the agents backed by the most promotion dollars aren’t always the best, and may not be a good fit for your circumstances. In today’s piece, we’re going to look at how you can find a good real estate agent in Orlando.

[NOTE: If you need to sell your Orlando house fast and can’t wait the 3-6 months+ it is taking to sell a home on the local market… we may be able to help by buying your house from you. We can make you an all-cash offer within 24 hours on your house in as-is condition. ]

How To Find A Good Real Estate Agent In Orlando – Get Reviews… Real Reviews

Online reviews of real estate agents are easily manipulated, and can be often times little more than paid advertisements. It’s important to get honest reviews from any agent that you’re considering, and any reputable agent will be glad to provide you with recent clients.

Also, reviews are one of the best ways to see how any real estate professional does out in the marketplace.

As a last way to check out the agent… hit Google and type in “[name of agent] reviews” and see what pops up in the Google search. If you see a bunch of bad reviews on websites like yelp and others… see if the agent tried to engage with those negative reviewers online to resolve the situation.

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Brooklyn Is Now the Least Affordable written by Jacob Davidson

 The study gauges affordability by measuring the percentage of the locality’s median monthly household income that is required to make monthly payments on a median-priced home in the area.

This study was based on a study of 475 counties in the United States. The statistics I have read about other parts of the world is most of the US single family homes are currently still affordable as compared to the worst three markets I have read about. Hong Kong, Canada (Vancouver, Toronto and Calgary) and London are much less affordable than most of the United States. It appears I need to study more about New York because prices have risen so much in the last eight-teen months.
Gene Hoffman

Read More by Mr. Davidson.

 When RealtyTrac ran the nation-wide numbers in October, payments on a median-priced home required 26% of the average household income. In Brooklyn, by contrast, where the median home costs $615,000 and the median household brings in only $46,960, home payments take up about 98% of a regular family’s wages. That’s less affordable than Manhattan — and even than San Francisco, where half of all homes sell for $1 million or more.

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Short Sale Valuation Problems by Realtor.org

 In this article it directs a Realtor to the necessary online form to dispute a valuation of a Fannie Mae listing price. Fannie Mae is in a fight against investors. Fannie Mae is helping the Banks sell their foreclosed properties at a much higher price to first time home buyer than the property is really worth. Invests will not pay the high  price of HomePaths' homes. Realtors have the right to dispute the value and a good Realtor should help an investor that wants to buy it.


January 23, 2013

Beginning in the latter part of 2012, a number of REALTORS® across the country reported that Fannie Mae had started jeopardizing short sale transactions by requesting purchase offers at significantly higher prices than market values. REALTORS® continue to report that Fannie Mae’s actions have led to a decrease in the number of Fannie Mae short sale transactions, an increase in the number of borrowers going through foreclosure producing further negative effects on surrounding property values. As a first step to address these concerns, Fannie Mae expanded its online HomePath for Short Sales tool to help speed up its escalation process in order to review problematic transactions more efficiently.

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U.S. Housing Market Mortgage Purchase Applications Running Out Of Time by Doug Short

The article and chart from Doug Short shows that wages have been declining. In Fact it shows median wages have declined to 2005 level. following the decline is mortgage applications. Both wages and mortgage application peaked at the end of 2006, What the chart doesn't show is the huge rise in the median price of a house. The median price of a house has rose 14% nationally. In Florida where I live prices rose over 20% in 2013. With house prices rising and wages on the decline house sales will decline in 2014 if one of two things do not happen soon. Either the twenty percent of people who are not looking for a job anymore find a good job or prices of houses must decline. If income remains the same most sellers will bot be able to find enough qualified offers to float the market.

by Gene Hoffman

U.S. Housing Market Mortgage Purchase Applications Running Out Of Time by Doug Short

For 2013, one of the main stories in housing was the cool down in existing home sales numbers over the second half of the year, in spite of the relative strength in GDP. What was the main reason for this? Follow the data and the answer appears. When interest rates spiked we did not see the mythical sideline home buyer rush to the market place. Rather what we saw was a collapse of the mortgage purchase application index.

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Home deals worth checking out by The Courtant

Let me try and give you an idea how the Fannie Mae, the banks and the Realtors are over charging people with bad credit. Read the last line of the article first. If you do not understand what I mean call me , email me or leave a comment.

Gene Hoffman

email: bearlakegroup@gmail.com



If you're planning to shop for a home in the coming few weeks, here's an early spring buying season come-on that just might save you some money if you qualify.
Fannie Mae, the largest mortgage investor in the country, has a bulging portfolio of houses acquired through foreclosures nationwide. Roughly 31,000 of these properties are listed on its HomePath (www.homepath.com) resale marketing site. To move them quickly out of inventory, Fannie temporarily is offering qualified owner-occupant purchasers — but not investors — cash incentives toward closing costs of 3.5 percent of the purchase price. But you have to submit your initial offer no later than March 31 and close by May 31.

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Cost of owning a home is spiking in 2014 By: Diana Olick CNBC

Supply and demand will balance out soon and I believe home prices will decline a small amount in the next two years before the next election. In order for a seller to find a qualified buyer two things must happen. A seller must be willing to a sell at both an affordable price and the home must appraise at the selling price. Second item the market must be big enough to attract dozens of qualified buyers with strong incomes and having good, well paying jobs.

Article by:  Diana Olick    CNBC

The sharp rise in home prices in 2013 caused two conflicting results: The return of positive home equity for hundreds of thousands of borrowers and considerably weaker affordability for an equally Read More... large pool of potential homebuyers.

While positive equity allows more borrowers to move, weaker affordability keeps them in place. So which will be the greater driver of housing this spring?

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Banks Loosening Mortgage Lending Standards by Philip van Doorn

It feels like 2006 again. I believe the mortgage market is heading to financing sub-prime borrowers. This smells bad to me.

Gene Hoffman

NEW YORK (TheStreet) -- The decline in mortgage activity in the United States continued in January and big banks, including Wells Fargo (WFC) and JPMorgan Chase (JPM) are responding by lowering their underwriting standards.
The Mortgage Bankers Association projects that originations of one-to-four family mortgage loans in the U.S. will decline to $1.116 trillion in 2014 from an estimated $1.755 trillion during 2013, with the wave of refinancing slowing as long-term interest rates have risen.
According to a preliminary estimate from Inside Mortgage Finance, the issuance of single-family mortgage-backed securities by Fannie Mae (FNMA), Freddie Mac (FMCC) and Ginnie Mae totaled $67.8 billion during January. That's down 10% from December and is also the lowest figure since January 2009.

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What is the qualified mortgage? By Jim Gay

Oh boy, more government regulations affecting consumers seeking mortgage loans that are eligible for Fannie Mae, FHA and Freddie Mac pricing. Could this be the last? We can only hope. However, for now the letters QM or qualified mortgage need to be understood and dealt with, like it or not. It is one of the final pieces of the Dodd-Frank Act. Whew!
On Jan. 10, QM went into full swing. It contains two main terms we all need to understand: “ability to repay” and “qualified mortgage.” Ability to repay is merely a refocus, once again, on the borrower’s income, credit and liabilities. If you have a mortgage, you surely went through this taxing scrutiny. It is the name of the game. So, what’s new? Extra scrutiny on the borrower’s income calculations and a new limit of 43 percent debt-to-income ratio.

A qualified mortgage is defined somewhat differently than mortgages have been for the last three decades. Negative-amortization loans, interest-only loans, loans exceeding 30 years, and balloon loans are not allowed. Also, a limit has been set on the fees normally paid to the mortgage companies or banks and may not vary even for the benefit of the borrower. Generally, under QM, the limit of points and fees associated with a home loan is now 3 percent of the total loan amount.

What is wrong with this? It sounds like these new QM rules will keep consumers from making unwise mortgage decisions. Yes and no. Qualified borrowers have long enjoyed the options of interest-only loans, balloon loans with lower rates, and amortizations longer then 30 years, but not any more.

Remember, also, that these rules are only for loans eligible for Fannie Mae, FHA and Freddie Mac, which means that jumbo loans are not part of the QM definition.

Most of the details in the QM regulations test the resolve of lenders and homebuyers will never see the complexity involved. So what is the bottom line for the consumer? Associate yourself with a lender possessing experience and knowledge to guide you through any new regulation.

All regulations that make the lending world more complex have the result of shrinking the available lenders that can complete your home loan. For the last three to five years, mortgage companies and loan officers have been leaving the business. Eventually, this trend may result in higher costs for loans because of less competition.

For the family looking to buy or refinance, my continued advice is to find a trustworthy and knowledgeable loan officer as an ally and proceed to accomplish your goals. Ignore the new QM regulations implemented on a national level. Let your chosen loan officer deal with any changes in the mortgage world.

The Nation's Housing: Mortgage experts sound alarm at massive identity theft, data breaches by NewsOK

Downward pressure is being applied to home prices, however because new home starts have been at historically low levels prices may push higher. When new construction picks up in class B apartments in 2015 we may see a stabilizing effect. FHA buyers may take longer to get an approval in 2014.

Eugene Hoffman

The Nation's Housing: Mortgage experts sound alarm at massive identity theft, data breaches

  The numbers of affected consumers are as yet impossible to predict, but mortgage credit experts warn that the recent massive data breaches at Target, Neiman Marcus and other retailers could have significant side impacts on some real estate transactions in the coming months, as damaged credit files depress scores and jeopardize loan applications and home sales.
The Target breach alone could touch as many as 70 million credit and debit card customers, according to the company. Neiman Marcus said that data on 1.1 million of its customers may be vulnerable to fraud. Data security researchers report that at least six other merchants have experienced data breaches from point-of-sale malware similar to what was used in the Target thefts.

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