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re: Realtor Payment -- Why is it a percentage of the home?
Posted on 6/28/17 at 2:36 pm to SlowFlowPro
Posted on 6/28/17 at 2:36 pm to SlowFlowPro
actually, there are some states that eliminate that and all agents are brokers
BUT
the same piece whereby we worry about agents not knowing what they are doing and screwing up...its real...which is why they NEED that supervision of a broker in many cases
BUT
the same piece whereby we worry about agents not knowing what they are doing and screwing up...its real...which is why they NEED that supervision of a broker in many cases
1
Posted on 6/28/17 at 2:37 pm to SlowFlowPro
I sold my last house FSBO, told the first realtor that called me with a client that I would give them 3% if they did all the legwork, and they agreed. Very easy.
Posted on 6/28/17 at 2:38 pm to 19thHole
quote:
the same piece whereby we worry about agents not knowing what they are doing and screwing up...its real...which is why they NEED that supervision of a broker in many cases
i just think this is a risk the person buying the service assumes
Posted on 6/28/17 at 2:45 pm to East Coast Band
quote:
Much more likely the 100k group won't qualify for a loan, have no idea what they want, and are generally clueless.
There are many people looking at $1 million homes that can't qualify. Also, buyers in the million dollar range are much more particular than a 100K buyer.
Think about it: If you were going to spend $1 million on a home, wouldn't you have very specific requirements for the property?
quote:
Not saying faster, just easier.
So taking 9-12 months to sell your house is "easier" than selling within the first month? Majority of people selling their home want it to happen ASAP.
Posted on 6/28/17 at 2:53 pm to baldona
quote:
No man, the majority do 6% because that is where negotiations start.
Isn't it amazing that in a world full of different brokerage firms and realtors all evaluating different properties, they all start at the same percentage, and routinely get it. Shouldn't it vary depending on how quick they think the house will sell, based on the location of the home, the condition of the home, and the price point?
It's almost as if they have all implicitly agreed to set the price at this amount. I'm sure that's not it though. According to you, it's only price fixing if they all openly admit it and stick to it 100% of the time.
Why don't you see if it is the same in other industries? Call 100 lawyers, describe a simple legal transaction, and see if they all start at the exact same price.
Posted on 6/28/17 at 2:55 pm to GeneralLee
quote:
I bet the clientele buying a $300K house may have their ducks in a row a lot more than someone buying a $50K house.
Yes, they may be more organized, but I mean there are less people that can afford a house the higher it climbs in price.
A 300K home is right in the median price range that most dual income households can afford.
My point is, as a home goes up each 100K, there are fewer people that can afford it in your market, making it a harder home to sell.
So a 300K home? Could easily be sold by owner (lots of buyers in that market)
500K home? Less buyers, but could probably be sold without a realtor.
700K+ home? Much fewer buyers, will be a hard sell by owner, should consider hiring a real estate professional to market and sell it.
Posted on 6/28/17 at 2:57 pm to Ben Hur
I aint for all this realtor bashing. They are good people.
Posted on 6/28/17 at 3:03 pm to rmc
i'm not bashing realtors. i'm bashing the overall system
Posted on 6/28/17 at 3:04 pm to CrazyCow202
Meh.....
Posted on 6/28/17 at 3:07 pm to SlowFlowPro
It's incredible how many different people and companies try to reach into your pocket when you buy a home
Posted on 6/28/17 at 3:15 pm to BabyCakes
quote:
True, but why make it a percent? And why is it set up front? Why not base it on the amount of work actually performed?
If they sell your house quickly they did less work but it's better for you.
Posted on 6/28/17 at 3:39 pm to SlowFlowPro
quote:
i'm not bashing realtors. i'm bashing the overall system
Just joshin. I am neutral to the argument itself. I benefit greatly from realtors so i'm certainly not going to sit here and bash them. I have seen where they add value. Sometimes more than their paycheck. Sometimes none.
Posted on 6/28/17 at 3:48 pm to BabyCakes
quote:
It seems like the same process for virtually every home,
Oh but it is not. The answer to your question is:
The commission is based off a percentage of the contract price of the home because the process (to get to closing)is NOT the same for every home or even similar homes
Posted on 6/28/17 at 3:51 pm to Bestbank Tiger
quote:
True, but why make it a percent? And why is it set up front? Why not base it on the amount of work actually performed?
Lol. What you are suggesting is Don't be upfront about the Realtor commission. We should make it a surprise to all parties in the transaction at closing. that will help everyone!
Posted on 6/28/17 at 3:56 pm to BabyCakes
According to reddit, sexy young female realtors almost always ball their male clients, so 6% isn't that bad.
Posted on 6/28/17 at 4:01 pm to BabyCakes
quote:
Isn't it amazing that in a world full of different brokerage firms and realtors all evaluating different properties, they all start at the same percentage, and routinely get it. Shouldn't it vary depending on how quick they think the house will sell, based on the location of the home, the condition of the home, and the price point?
There is a agent locally that moves a ton of high end properties, and has the reputation for doing it quickly. Hard to understand why she is satisfied with 6%, she could easily charge 8 or 9, work less and make the same money.
Posted on 6/28/17 at 4:12 pm to SlowFlowPro
quote:
what is capitalist about a service that is only offered by people anointed by the state, in a regulatory scheme that prevents any sort of real competition?
Come on man, you're better than that.
I read the Cliff Notes to a law book one time. Can I start representing people in court as a cut-rate attorney? No, I have to go take those silly tests and be a member of that association.
It's collusion I tell ya!
Posted on 6/28/17 at 4:13 pm to Supermoto Tiger
quote:
Lol. What you are suggesting is Don't be upfront about the Realtor commission. We should make it a surprise to all parties in the transaction at closing. that will help everyone!
Wrong, that is not what I am suggesting. When you encounter a standard price across competitors, which is set regardless of the work involved, location of house, or the difficulty of the listing, then you are certainly ripe for a price fixing analysis. The market is no longer based on supply and demand. Instead, a group has seized control and is mandating an artificial price for a product. Since all of the "competitors" have collectively agreed on this price, it is a form of illegal price fixing.
The price fixing is compounded by a group boycott. As pointed out in this thread, if you go the FSBO route, realtors intentionally steer clients away from the home. They will not allow a true competitor to emerge and undercut them.
Don't you think it is odd that competitors routinely compete on the price of a service or product while realtors do not compete, with only a few limited exceptions? Do you think it would be odd if Home Depot/Lowe's had the exact same pricing for all items in their stores?
Posted on 6/28/17 at 6:59 pm to Supermoto Tiger
quote:
Lol. What you are suggesting is Don't be upfront about the Realtor commission. We should make it a surprise to all parties in the transaction at closing. that will help everyone!
Not me - I was quoting someone else.
Posted on 6/28/17 at 8:43 pm to BabyCakes
This purple bricks concept is interesting. Flat rate and they handle listing, advertisements, photos and all showings.
If they come to the US I would do that hands down.
If they come to the US I would do that hands down.
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