Be Your Own Real Estate Broker - CBS

The housing market is hot. In fact, homes are in such high demand that many sellers are wondering if they even need to hire a real estate agent to broker the deal.

Financial adviser Ray Martin gave some tips on The Saturday Early Show for owners who want to sell a home themselves.

Home values are up, mortgage rates are low and properties in hot markets are selling in days. The only fly in the ointment for many sellers is the traditional six percent commission paid to real estate brokers who make the deal. As home values continue to skyrocket, the broker commission skyrockets as well. Meanwhile, it seems as though these brokers are doing nothing more than watching the home sell and then collecting a large commission. The thought of having to pay brokers $10,000 or more to sell a home that fetches a buyer in less than week is causing many sellers to stop and think: "Do I really need to spend that money?"

FSBO (For Sale By Owner) can be a good option for some people, Martin says. If your home is in a hot location, at a price that is affordable to many potential buyers, and similar homes are in short supply, this can be a good strategy. But, Martins says, FSBO is not for everyone.

http://www.cbsnews.com/stories/2004/05/21/earlyshow/saturday/main619035.shtml

In my brief experience with real estate agents, they have no more morality than car sales persons.

Mortgage rates are low? Well for sure on an historic basis but they are up about a full point over the last 2 months. Which works out so maybe a 25% increase. When was the last time something went up 25% in two months and someone had the nerve to say the price was low. Oh, silly me. Every goddamn day if one listens to ANYONE connected with the financial industry including "financial advisors".

If he were to read this and respond he would surely point out that ARM first year rates are still at rock bottom. This is actually the tell that the end is here. Those teaser rates are being surpressed and are a loss leader to herd the stragglers into the pen.

This exact moment is likely to be the absolute top in home prices as a national average. It might take 6 months for that to be recognized.

Real Estate agents are saints compared to mortgage brokers.

Ooops, sorry for the rant. Maybe I'm wrong on the price thing. For now.

By all means sell your house yourself. Then go rent a place.