Categories
- Buyers
- Sellers
- Avondale
- Ortega
- Riverside
- Market Update
- Places – The Insiders Guide
- Condos
- Gone in a Day!
- Luxury Homes in Jax
- New Listings!
- Breaking News
- Deals, Deals, Deals!
- The Real Estate Process-How Does this work?
Local Area Resources
- The Resident Community News – Riverside, Avondale, Ortega and San Marco
- The Riverside Arts Market Website
- Riverside Avondale Preservation (RAP) Website
Condos
Archives
- April 2012
- March 2012
- September 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- September 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
Follow Me:
Archive for January, 2010
How a Realtor Gets Paid — The Nuts and Bolts
I had a conversation today with someone who is NOT thinking of buying or selling. At some point, we talked about the commission a realtor gets paid and he said “Give me a break! My realtor spent all of 3 hours with me combined in our entire transaction and got a HUGE paycheck”! This perception of the fact that we realtors are all driving around in our Mercedes Benz’s throwing dollar bills out the window deserves a little attention.
Most realtors charge between 6 and 7% commission. The listing realtor (the one whose sign is in your yard) and the selling agent (the one who represents the buyer) each get half (3% each). The average real estate transaction is about $200K which at 6% commission is $12,000 or $6,000 for each realtor.
Out of the $6,000, the realtor must pay the broker a “split”. In most agencies, the realtor gets around 70% and the broker gets 30% which in this scenario $4,200 for the realtor and $1,800 for the broker.
Out of that $4,200, the realtor pays ALL of their own marketing expenses. This includes all ads, photography for our listings (we use and pay for professional photography), postcards, postage for postcards, online advertising (including realtor.com, trulia.com, zillow.com, etc…) and dues including membership in the MLS (multiple listing service) & NEFAR (NorthEast Florida Association of Realtors).
Realtors spend many, many hours on the phone talking with homeowners, prospective buyers and other realtors. They hold open houses, place signs out for open houses (and then pick them back up), attend showings, follow up with showings, call realtors to get feedback, negotiate contracts (once at the beginning of a deal and often a second time after inspections), coordinate the transaction with the closing or title company, the mortgage company, attend inspections, go to closing, buy closing gifts, prospect for new business, develop budgets and marketing strategies, place ads in local publications, etc… The list goes on and on.
Realtors are also condsidered independent contractors which means that we pay both employer and employee taxes AND we pay for our own health insurance. Perhaps even more important than all of the expenses is the fact that a realtor only gets paid if someone buys (or sells). We show lots of houses to people that never buy and not every listing we take sells.
The average realtor is involved in 6-8 transactions per year. So, the next time you think you’re realtor is overpaid, ask how much he/she made last year. I bet you’ll be surprised. Hopefully you can see that with all that’s involved, most realtors are not getting rich. Just like in any profession (superstar athletes, surgeons, businessmen, actors, etc…) there are a few MEGA producers that do make a lot of money — but they’ve served their time of lost holidays, weekends and evenings on their way to the top. 
A final point to consider is that when you bought your house, you didn’t pay ANY commission at all – the seller paid it. So, if you’re getting ready to sell and dreading the thought of paying a commission, try to remember all the times that you got the services of a realtor for free!
There seems to be the perception out there that realtors don’t do much and get paid a lot. I hope after reading this that you’ll see things a little differently. If you’re interested, I copied an article from the internet on the subject — click here to read it.
Thanks for reading — if you’d like more information about houses for sale in Jacksonville (or thinking or selling yours) in the Avondale, Ortega or Riverside neighborhoods of Jacksonville, I’d love to share my local area knowledge with you!
Baby it’s Cold Outside – In Jacksonville, FL!
I was showing a few of our listings at Villa Riva (a luxury condo building in the neighborhood of Riverside in Jacksonville) today and snapped this picture of their icy fountain — note the contrast of the icy fountain with palm trees in the background. As the song says, baby it’s COLD outside!
Frozen Fountain at Villa Riva
Top 10 Mistakes Sellers Make – Video
Take a look at this video from real estate expert Barbara Corcoran who talks about the top 10 mistakes sellers make when trying to sell a house.
Please note her specific mention of the fact that your first offer is ususally your best (nearly always true), that it’s critical to have professional photographs taken since the majority of today’s buyers start their search on the internet and that having clean closets will lead your buyers to think you’ve given the same amount of attention to rest of your house!
Remember…in addition to the nuts and bolts of selling a house (price, square footage, etc…) part of the process is about appealing to your buyers on a psychological and emotional level. So without further delay, click on the Top Ten Mistakes Sellers Make to see the video – enjoy!
Monday Morning Market Report – Week Ending January 10th, 2010
Click Here to See Graph
Good Morning Everyone — This is the first Monday Morning Market Report encompassing the first full week of 2010. As expected, the number of closings declined and the number of new listings increased.
Several of the new listings were re-lists so the ACTUAL count of new listings was only 7. No activity on houses freshly under contract (contingent sales). The pending sale of the week is a foreclosure unit at 1661 Riverside that I blogged about in November. There were three closed sales – the one on College Street was never listed in the MLS – must have been a FSBO that a realtor had a buyer for.
There were a staggering 22 price reductions this week but only one of them deserves a ”shout out”. It’s a 4,000+ square foot house on the river in Ortega that was originally priced at $1.7M. It’s been through several price reductions and, this week, was reduced by another $150K to only $1,195,000 or $285 per square foot. Wow!
The house needs some work but at this price, there is more than enough room for the improvements it needs. It has several decks, a great fire pit near the river, a dock and boat house — just about everything you could want for graceful riverfront living.
Why hasn’t this house sold before now? My guess is that it’s not in keeping with what most folks in Ortega are looking for. The house has more of a seventies look to it than the brick and frame homes that are more
popular here. My opinion is that with a different color stain, some white trim and a bit of interior fix up and someone would have real value here. If there’s anyone out there interested, please let me know.
That’s a wrap for this week. Thanks for reading and please join me for my next update on the state of real estate in Avondale, Ortega and Riverside.
Stats for the Week:
New Listings – 10 (To see the list, click here)
Active/Contingent – 0
Pending Sales - 1
Closed Sales - 3
Price Reductions — 22
New Low for Riverfront in Ortega?
A riverfront house that was originally listed for nearly 1.9M at 4404 McGirts Blvd. has closed for $965K — that’s almost 50% less than the original asking price! Was the property ever worth 1.9M? Maybe not. There was, however, an offer of well over 1.4M that another realtor brought them early on in the listing period that was turned down – ouch!
There’s an existing house on the property that will eventually be torn down to make way for a new construction home. The lot had about 150′ of riverfront and beautiful views of both the marina across the way and of downtown.
I wrote a post yesterday about a non-waterfront lot on a prime street in Ortega that just closed for about $250K — between that low on Arapahoe Avenue and now this one for waterfront, my prediction is that this is the bottom. If you’re waiting for deals, you should choose quickly because at these prices, they will begin to disappear.
If you’re looking for something special, please let me know. Sometimes I know about things that aren’t yet listed and/or price reductions that are about to happen. Inside information can help you snag a great deal.
Thanks for reading. Please join me for my next post about what’s happening in Ortega, Avondale and Riverside!
PRIME Lot in Ortega sells for less than $250K!
Well folks, between the low of $180 per square foot for the short sale on Elizabeth Place and now a new low for land in Ortega, I think we have finally hit the bottom.
A prime lot (there’s an existing house on the property that will be torn down) in the neighborhood of Ortega recently closed for just under $250K. The actual sales price was more like $222K but the buyer paid thousands of dollars in closing costs making the net sale price closer to $250K. The buyers intend to build a new home on the lot and will live in the neighborhood while their new house is under construction. The lot dimensions are 100 x 125.
My prediction is that people will begin to say to themselves “I should have bought that” and start looking around for the next best opportunity. This will cause some of the inventory that’s been languishing to begin getting snapped up.
If you’re one of those people, we have a great lot listed on a prime street in Avondale. I wrote a post about it several weeks ago but since then, we’ve been granted permission by the historic commission of Jacksonville to have the house torn down. So…. if you’re looking for a great building lot on a great street, please give me a call!
WANTED! Bungalows in Avondale, Ortega or Riverside!
With the economic stimulus offered by the government set to expire at the end of April and interest rates that remain under 6%, bungalows under $250K are in more demand than ever!
My partner Caroline and I know that there are lots of people out there looking for these houses and would love to help you sell yours.
If you’ve beening thinking of selling but wonder what’s going on in the market, please give us a call — we’d love to talk.
Monday Morning Market Update – Week Ending January 3rd, 2010
Click Here to See Graph
Good Morning Everyone! Happy New Year. Hope this post finds you ready for a great 2010!
The market stats this week show a continued trend for fewer new listings as well as continued strength with pending and closed sales — good news!
The more weeks we can string together like this the better. Fewer new listings + more closed sales = a recovering market. As inventory decreases, there is more demand and less supply which will help stabilize the market.
Please read below for the highlights of the week.
The weekly stats are:
New Listings = 5 (One of these is a re-list so there are really only 4 New Listings) (Click Here to see List)
Active/Contingent = 0 (Click Here to See List)
Pending = 6 (Click Here to See List)
Closed Sales = 7 (Click Here to See List)
Price Reductions = 5 (Click Here to See List)
3692 Holligsworth - Kitchen
The Listing of the Week is a darling 3Br/2Ba bungalow in Avondale on Hollingsworth. Totally renovated with a new kitchen, new master suite, gleaming hardwoood floors and a one car garage, this house is priced at only $134 per square foot!
A thorough review of price changes doesn’t reveal anything worth shouting out about so that’s a wrap for this week.
Thanks for reading. I look forward to sharing the great real estate news of 2010 that many are expecting in Avondale, Ortega and Riverside!
$180 Per Square Foot – Is This The Bottom in Avondale?
Two of the most recent sales in Avondale sold for approximately $180 per square foot (sales price divided by the number of air conditioned square feet). Both homes were nicely updated (not top of the line with all of the bells and whistles) but better than your average bear.
One of the houses was a short sale on Elizabeth Place and the other was a non-distressed house on Edgewood Avenue.
If you’re thinking of selling, this might be a number to keep in mind — many of the properties listed today are well over $200 per square foot but they aren’t moving.
Take your square footage and multiply it by $180 a square foot — is it a number that makes your blood run cold? For many sellers, the answer would be yes — especially if they bought in 2005, 2006 or 2007.
If you’re thinking of selling, give us a call — there’s more to the picture than just price per square foot!
Pssst……I’ve got a secret!
We realtors are always keeping our eyes and ears open for great opportunities and are often the first to know about things that will be coming to the market in the future.
Today, I learned about a fantastic condo that will soon be listed (not by us) and I’m looking for a buyer! The unit is pure luxury and priced well below recent sales in the building.
Outfitted with the best and with a New York sensibility, it will be attractive not only from a price perspective but also from a design perspective — a real gem.
Since it’s not going to be my listing, I want to be the one to bring a buyer — if you’re looking for a great condo deal, please call me — this one will go quick!
Search for ANY word used in a blog post
Recent Posts
- Darling Bungalow Hits the Market in Avondale!
- Fantastic Waterfront Home in Ortega Just Reduced to only $570K!!
- The Early Bird Gets the Worm in Avondale!
