{"id":797,"date":"2006-12-22T09:14:51","date_gmt":"2006-12-22T16:14:51","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=797"},"modified":"2006-12-22T09:14:59","modified_gmt":"2006-12-22T16:14:59","slug":"cutting-out-middle-man-in-a-sale-might-cost-you","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/797\/cutting-out-middle-man-in-a-sale-might-cost-you\/","title":{"rendered":"Cutting out middle man in a sale might cost you"},"content":{"rendered":"

This is me in today’s Arizona Republic<\/i><\/a> (permanent link<\/a>).<\/p>\n

 
Cutting out middle man in a sale might cost you<\/b><\/p>\n

I’ve talked about disintermediation before, and surely it will come up again. Disintermediation in real estate is the idea that buyers and sellers can eliminate the middle man — in this case the Realtors — and deal with each other directly.<\/p>\n

The belief is that the Internet will provide information formerly “hoarded” by Realtors so that real estate transactions will become as simple as buying stocks or airline tickets online.<\/p>\n

The information that is supposed to make this happen is the Multiple Listing Service, and that’s something we can talk about another day. For now it is sufficient to make plain that MLS listings are very far from being the most important information in the sale of a home. The simple fact is that, because I do this job every day, I can do a much better job than an unrepresented buyer or seller, much as you can do your job better than I could.<\/p>\n

Want proof? Let’s go buy a house.<\/p>\n

We’re out showing homes with our party and they settle on one they like. Because it’s a buyer’s market, and because the buyers aren’t very well prepared, we don’t write a contract right away.<\/p>\n

What’s the best day to write an offer? Tuesday, in principle, but the absolute best day is the first Tuesday after the first of the month. The buyers have never given this a second thought, but it’s our job to know.<\/p>\n

We’ll send the buyers to a lender we know and trust. Why? Because, although they have good credit and good incomes, they have no cash. Our lender can write a fast 80\/20 loan with very low closing costs. Say what? That’s an 80 percent first mortgage, a 20 percent second mortgage with no private mortgage insurance — all without costly junk fees.<\/p>\n

When we finally write the offer, we’ll recommend a structure like this: List price, less 5 percent, with an additional 3 percent coming back to the buyers as closing costs.<\/p>\n

Are we done yet? Not even close, but we’re done for now. Come Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is me in today’s Arizona Republic (permanent link).  Cutting out middle man in a sale might cost you I’ve talked about disintermediation before, and surely it will come up again. Disintermediation in real estate is the idea that buyers and sellers can eliminate the middle man — in this case the Realtors — and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,6,5],"tags":[],"class_list":{"0":"post-797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":202,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/202\/ten-more-bricks-in-the-wall\/","url_meta":{"origin":797,"position":0},"title":"Ten more bricks in the wall . . .","author":"Greg Swann","date":"August 11, 2006","format":false,"excerpt":"I write a lot about disintermediation, but it's not a front-burner issue in our business. Not yet, anyway. We know that much of what we sell, as a business, is the convenience of being able to dump the real estate problem on us. I'll say to clients, in jest, \"If\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2992,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2992\/will-realtors-be-disintermediated-by-on-line-tools-probably-not-but-tech-savvy-realtors-will-supplant-those-who-do-not-adapt\/","url_meta":{"origin":797,"position":1},"title":"Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt","author":"Greg Swann","date":"April 20, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt The big news in real estate is the market, of course. My view is that the American economy\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":771,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/771\/web-sites-offer-exciting-options\/","url_meta":{"origin":797,"position":2},"title":"Web sites offer exciting options","author":"Greg Swann","date":"December 15, 2006","format":false,"excerpt":"This is me in today's Arizona Republic (permanent link). Sadly, this is news. In other words, this is the first mention of the Zillow.com upgrades in the Republic. Web sites offer exciting options Depending on whom you talk to, the real estate industry is undergoing a revolutionary change - or\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":762,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/762\/who-needs-realtors\/","url_meta":{"origin":797,"position":3},"title":"Who needs Realtors . . . ?","author":"Greg Swann","date":"December 12, 2006","format":false,"excerpt":"I was talking with a reporter yesterday about the idea of disintermediation in real estate. I brought up the question of what is the ideal closing date, just as a quick and dirty illustration of why buyers and sellers need professional advice, even if they think they don't. This morning's\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2635,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2635\/seth-godin-to-realtors-get-great-or-get-out-of-the-game\/","url_meta":{"origin":797,"position":4},"title":"Seth Godin to Realtors: Get great or get out of the game","author":"Greg Swann","date":"February 21, 2008","format":false,"excerpt":"Excellent advice, start to finish. He's not a Realtor, but he's actually sold things other than jawbone in his life. Technorati Tags: blogging, disintermediation, real estate, real estate marketing, real estate training, technology","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1048,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1048\/fizzbos-fizzle-because-of-3-key-marketing-issues\/","url_meta":{"origin":797,"position":5},"title":"‘Fizzbos’ fizzle because of 3 key marketing issues","author":"Greg Swann","date":"February 16, 2007","format":false,"excerpt":"This is me in today's Arizona Republic (permanent link): \u00a0'Fizzbos' fizzle because of 3 key marketing issues I have a friend in another state who is selling his home \"by owner,\" which Realtors affectionately refer to as a \"fizzbo.\" It's interesting for me to watch, because he's done a very\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=797"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/797\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}