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Zoom Call 5.14.24 William Piotrowski Let's Talk Real Estate

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

Zoom Call  5.14.24 William Piotrowski Let's Talk Real Estate

The Zoom call this week was monitored and presented by William Piotrowski. The tone of this call was more of an exchange of information very similar to the conversations anyone in the business may have had with fellow professionals while on a break at a seminar.

There was some conversation on the lack of support by NAR and their focus being revenues received by them and the lack of ROI received by agents. Many feeling it continues to be a one-way street.

He then offered comments on an article of dis-information that was in the New York Times on renting vs owning.

A graphic showing sliding scales for Home Price and Monthly Rent

In the article, they attempted to show that with a $2,000 a month rent on a $500,000 home, a renter would save $133,000 over a 10-year span against paying a mortgage. There was a lot of back and forth on this article, yet when I looked up the article, the chart used as the basis of the article was one that was originally used in a similar article dated May 14, 2014, and I regret that I hadn't looked up the article at the time of the call.

Not knowing what the interest rates may have been at the time, the reality of the article when looked at today is the renter would have been paying their own mortgage, and with the appreciation of the past 3 years, that $500,000 home would have better than doubled in value.

 

Zoom Call  5.14.24 William Piotrowski Let's Talk Real EstateWhat William was able to show was that on buying a house valued at $630,000 purchase saved over $183,391 over 10 years.

This led into a conversation on using comparables for an appraisal to get a mortgage and the differences that one appraiser may have against another,

William then offered out a question to the attendees as to what types of tools would a lender need to offer to a buyer's agent to assist the with their mortgage.

He used as an example a quick calculation an agent could use when trying to demonstrate to a seller the net profit on a sale. Using a $300,000 selling price, he suggested an agent use a figure of 10% as the costs to sell a home.  This would include commissions, title fees and additional costs.

Assuming the sellers had a $200,000 mortgage balance, their net profit would be roughly $70,000.

He then went into a topic that he felt was a trend of the future with the issue of fees being so much in the news. He had asked an agent in the Chicago area of they would take a $1,000,000 listing for a 1% fee. That agent balked as not being industry standard. He felt that was not a wise thing to do given the current negativity facing agents over the compensation for both sellers and buyers.

His belief that having 10 houses, at $1,000,000 each and a 1% flat fee would generate $100,000.

That was a standard for a now defunct brand that wasn't able to get their agents to sell sufficient to stay in business. 

He then discussed agents in the Chicago area selling homes with open listings. This would be asking the seller what they wanted as a gross value on the sale and the agent would then sign up the listing with the understanding that they would take anything over $500,000 as their compensation.

This was discussed heavily with the majority of agents on the call noting that it is a practice that first, violated the agent's fiduciary obligations to the seller, and was also not legal in the majority of states.   It is also referred to as a net listing.

The conversations went on with people noting the types of deals being encountered in their areas and the impact the changes coming in August will have on the business.

 

Zoom Call  5.14.24 William Piotrowski Let's Talk Real Estate

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Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed there was a lot of participation during meeting, on top of all the good information William presented.

May 15, 2024 02:03 PM
Ed Silva, 203-206-0754

George Souto   This call felt more like the passing of time on a seminar break when all are comparing notes on their markets.

May 15, 2024 02:32 PM
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

Great recap of the meeting, Ed.  It's amazing how many different opinions people have on this topic.

May 15, 2024 06:02 PM
Ed Silva, 203-206-0754

Elyse Berman, PA  I do believe the opinions are a result of the style of business conducted in different sections of the country. It should be fairly standard but as long as all areas handle agency different there will be issues.

With the mandate of buyer agency in August it will get better.

May 16, 2024 05:42 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Ed- Thank you for another great recap. I love William Piotrowski's presentation. He is always enthusiastic and willing to help everyone. Even though I'm not an agent, I found all of this interesting. 

May 15, 2024 06:04 PM
Ed Silva, 203-206-0754

Kathy Streib   He does show his enthusiasm and feels that the agents should have a compensation structure that leaves no doubt to the consumer.

May 16, 2024 05:44 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Ed:

I enjoyed the recap of William's presentation and the discussion. Wish I could have been there.

Jeff

May 15, 2024 06:30 PM
Ed Silva, 203-206-0754

Jeff Dowler, CRS   As I was filing the notes of the Zoom call, I noticed that it was almost a year to the day of another Call presented. He does come prepared.

May 16, 2024 05:46 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Great synopsis (as always), Ed. I'm still not sure that discussions of compensation between agents is all that kosher.

May 16, 2024 04:50 AM
Ed Silva, 203-206-0754

Nina Hollander, Broker  Thank you  It wasn't the agents' discussing fees, it was the loan originator

May 16, 2024 05:47 AM
Nina Hollander, Broker

Ed Silva, 203-206-0754 get a stinker of an attorney on it and it might be come a difference without a distinction.

May 16, 2024 06:29 AM
Ed Silva, 203-206-0754

Nina Hollander, Broker   You must be from New York

May 16, 2024 06:37 AM
Nina Hollander, Broker

Ed Silva, 203-206-0754 ya think? 😂

May 16, 2024 08:15 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It sounds like everyone benefited from the discussions had during this zoom call.  I had a discussion yesterday with associates with regard to not being members of NAR.

May 16, 2024 05:33 AM
Ed Silva, 203-206-0754

Brian England   There are a lot of people questioning the value received by NAR membership and they seem to be losing.

May 16, 2024 05:48 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Ed, for your report on this Zoom session.

Have a great day!

May 16, 2024 08:25 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Ed,
I was unable to attend this session, so thanks for the recap. There are many reasons to own a home and many variables involved in calculating "savings." The biggest savings come when you have a home "free and clear" of a mortgage. Of all the reasons, that is the big one! If that was the only one, it would be worth it.

We need to put the future in the equation, not just the present.

May 16, 2024 09:05 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Ed,

Thank you for the recap of our Zoom meeting. William Piotrowski offered a great presentations and lots of input from members. Since real estate differs from state to state it's not a wonder there are different practices. I'd not heard of a net listing because its not allowed in Texas.

May 16, 2024 09:30 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Fantastic recap, Ed! I will take facts over fiction any day and am glad that I was at the zoom meeting.

May 16, 2024 09:30 AM