Don't buy a condo. They're a rip off 100%

Thanks

Thanks Toni

I’m on the seller pays side of the realtor commissions conversation. If I own a house worth x I have two options to sell it, one is by myself and the other is with a realtor. If I choose to pay the realtor to help me the property is still worth x. And as far as mortgage broker commissions go, I’m not aware of any lenders that will give you a lower rate if you choose to go to them directly rather than through a mortgage broker, so those fees are definitely paid by the lender not the client.

@@NolanMatthias There's a bit of indirection happening but those fees and costs aren't happening without a buyer. With regard to the price of a home perhaps some sellers would take a lower price if realtor commissions were not part of it. I disagree that notion that "the property is still worth x". A home owner that understands basic math would rather take a lower purchase price if the net received on the transaction was higher. If the cost bank vs. broker is the same the marketing/paperwork is partially being outsourced to the broker. There's still a cost and that is part of the equation. It may be slightly harder to quantify but it's all getting amortized into a monthly payment from the buyer's perspective.

I guess given that they potentially affect the overall cost of a house they are the ultimate hidden cost.

I’ll address the realtor costs first. When a sale is performed without a realtor there is always an appraisal required. In 18 years of doing mortgages, and thousands of transactions I can say unequivocally that only once have I seen a buyer get a better deal when a realtor wasn’t involved. That buyer happened to be a very sophisticated industry member. So if sellers always get the full value for their property or more then the cost of a realtor is the sellers not the buyers. This is based on 18 years of evidence and data not speculation. With respect to mortgage brokers, the cost of a mortgage broker for a lender is far less than what it would cost for an employee, therefore the banks make more money when a deal is brought to them by a broker. You can factor that cost into the equation, but you can also factor in the cup of coffee they offer you at the door. At the end of the day if using a broker saves you money it wasn’t a cost to a borrower it was a benefit. You can move the chess pieces around the board all you want, you can paint them different colours if you want. But at the end of the day calling pawns knights doesn’t make them knights. Appreciate your comments though and your perspective.

@@NolanMatthias by this logic you should just roll all the costs in the video into the mortgage payment so there's zero hidden costs. It's a great video but I just disagree. If you're buying a "starter" home you have the realtor cost deferred because your intended to sell it. The money is still flowing. That's a cost to somebody.

$50 + $40 for every $100,000 of the value

Clearly I’m better with numbers. Lol. Thanks!

Everyone I know who would take wine and cheese would just lend you a truck 🤣

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