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re: Strategies for buying a house USING the listing agent ....
Posted on 11/29/11 at 12:13 pm to bamaswallows
Posted on 11/29/11 at 12:13 pm to bamaswallows
quote:
Commission IS negotiable - I negotiate mine all of the time.
I will at least give you credit for saying this. One of my big gripes is the entitled mentality of the incompetent brokers who are hopelessly anchored to a 3% mentality...NO MATTER WHAT.
I have watched agents in the midst of a crisis and with severely diminished business turn their noses up at reduced commissions.
shite, when I sold my place, I only wanted to allow 2% for a selling agent commission. My 1% listing agent told me "look, I totally agree with you. I'm going to be doing a shitload more work than the selling agent, yet they are going to make 3X more than me". He advised putting in 3% instead of 2%...otherwise selling agents would "boycott the listing".
BOYCOTT THE LISTING. Yeah, that's a fine way to represent your clients.
1
Posted on 11/29/11 at 12:14 pm to C
quote:
Why do think the market dictates the buying price but not the selling price?
Buying price = what buyer pays. Selling price = what seller sold for. Given the same transaction, Buying price = selling price = market driven.
quote:
What the seller gets is fundamental to the transaction. For your scenario, the seller is out $6K. Would he actually sell at that price?
He damn well better figure it out if he's agreed in the first place to list it with an agent!
quote:
Better yet what if instead of selling with a broker at $100k, he sold for $97K and everyone won? I mean except the agent.
Sure - that would work too. It is up to the seller!
Posted on 11/29/11 at 12:19 pm to Tiger JJ
quote:
REAL Scenario 2 (buyer does not employ selling agent): House price = $98K Buyer pays $98K Seller gets $98K less listing commission of $2940 = sellers ends up with $95.06K in his pocket instead of just $94K AND buyer pays $2K less.
This assumes that the seller's commission structure with seller's agent was 3% if no buyer's agent is involved (I have agreed to this structure in the past). Otherwise, 6% would be paid to listing agent regardless of buyer having agent or not.
Posted on 11/29/11 at 12:23 pm to Tiger JJ
quote:
He advised putting in 3% instead of 2%...otherwise selling agents would "boycott the listing".
It is a shame that SOME agents would steer their clients away from a 2% listing and onto a 3% listing merely because the agent wants more money out of the deal. When I represent a buyer, I want them to get the house they want. I NEVER make decisions based on the commission I'll get as a buyer's agent. It is set by the seller and I have to live with whatever it is if my buyer wants that house.
Again - there are bad eggs in every profession on earth
Posted on 11/29/11 at 12:24 pm to bamaswallows
quote:
This assumes that the seller's commission structure with seller's agent was 3% if no buyer's agent is involved (I have agreed to this structure in the past). Otherwise, 6% would be paid to listing agent regardless of buyer having agent or not.
No, it assumes that rational economic actors are involved, and when a "real" buyer comes in and says "I will sign RIGHT NOW if the price is $2k lower...and oh BTW, I'm not using a selling agent", the rational economic actors find a way to get the deal done instead of pretending that the original listing contract cannot be amended.
I take back the credit I gave you 2 posts ago. You are advancing the same, tired, self-serving lie that somehow these contracts were included on the tablets in the 10 Commandments.
Posted on 11/29/11 at 12:38 pm to Tiger JJ
quote:
No, it assumes that rational economic actors are involved, and when a "real" buyer comes in and says "I will sign RIGHT NOW if the price is $2k lower...and oh BTW, I'm not using a selling agent", the rational economic actors find a way to get the deal done instead of pretending that the original listing contract cannot be amended.
Well, sure, let's make up the scenario and rules as we go. In your latest version, should that scenario occur, I am sure the parties would/could agree to a compromise on the commission structure (an amendment) in order to get the deal closed. Everything is negotiable in life - real estate surely is no exception!
quote:
I take back the credit I gave you 2 posts ago. You are advancing the same, tired, self-serving lie that somehow these contracts were included on the tablets in the 10 Commandments.
G'damn you sound real butthurt there....
Posted on 11/29/11 at 12:41 pm to bamaswallows
quote:
Well, sure, let's make up the scenario and rules as we go. In your latest version, should that scenario occur, I am sure the parties would/could agree to a compromise on the commission structure (an amendment) in order to get the deal closed.
What? It's not making up rules. It was inherently assumed that contracts would have to be amended. Nobody is asking you what the contracts say - which appears to be the only question you are able to answer.
Posted on 11/29/11 at 12:47 pm to Tiger JJ
At the end of the day, a 6% commission (or 3,4, or 5%) is absurd for the amount of work done and is giving money away. I am pretty familiar with all the players involved in this and the amount of work each does and paying a realtor more than 1% for what they do is silly. The problem is the way they cornered the advertising market (though what basically amounts to collusion) decades ago, coupled with the stupidity and laziness of the average joe which actually pays the commission.
This post was edited on 11/29/11 at 12:49 pm
Posted on 11/29/11 at 12:50 pm to Tiger n Miami AU83
quote:
At the end of the day, a 6% commission (or 3,4, or 5%) is absurd for the amount of work done and is giving money away. I am pretty familiar with all the players involved in this and the amount of work each does and paying a realtor more than 1% for what they do is silly. The problem is the way they cornered the advertising market (though what basically amounts to collusion) decades ago, coupled with the stupidity and laziness of the average joe which actually pays the commission.
this
Hey, AU83...didn't we have some dustup a few years back about housing prices? Something to do with Miami or something?
Posted on 11/29/11 at 12:53 pm to Tiger JJ
quote:
What? It's not making up rules. It was inherently assumed that contracts would have to be amended. Nobody is asking you what the contracts say - which appears to be the only question you are able to answer.
ok bud, you are a genius for figuring out 3% is less than 6%. Congrats. you win. yet all you did was reduce the commission rate in your "Real Scenario 2"
Posted on 11/29/11 at 12:56 pm to Tiger JJ
Yeah, I think so. I think it was part of a broader discussion about the markets as a whole. I know I started posting on this board sometime when the market was bottoming in the recession telling people to start buying. I pretty much nailed the market timing, except I think I was basing a lot of it on the Fed and their bond buying spree, Q2, etc to drive down interest rates to prop up the housing market. I called for a floor for the housing market the next spring (about a year and 2-3 months out at the time). Missed the timing there, but I went all in on stocks at the time and my portfolio was up almost 60% that year so I was pretty happy though I blew my housing market prediction (which I think is what you disagreed with me on).
Posted on 11/29/11 at 12:57 pm to bamaswallows
I am leaving the computer now, as this rhetoric has grown tiresome.
Time to go screw some poor seller out of a commission! While all the while they are allowing me to do so, nay, BEGGING me to do so, and it's perfectly legal and all parties are satisfied except for Jersey and C! Woo hoo!!!!!
Time to go screw some poor seller out of a commission! While all the while they are allowing me to do so, nay, BEGGING me to do so, and it's perfectly legal and all parties are satisfied except for Jersey and C! Woo hoo!!!!!
Posted on 11/29/11 at 12:59 pm to bamaswallows
Go get em. A fool and his money should be parted.
Posted on 11/29/11 at 1:02 pm to bamaswallows
quote:
ok bud, you are a genius for figuring out 3% is less than 6%. Congrats. you win. yet all you did was reduce the commission rate in your "Real Scenario 2"
Why don't we summarize YOUR contributions to this thread:
--tell everyone they are ignorant
--remind us that listing contracts have terms in them
--ask why an agent would ever want to reduce their commission
--give final advice to wait and LET THE AGENT SUGGEST LOWERING A COMMISSION OR NOT
Posted on 11/29/11 at 1:03 pm to bamaswallows
quote:
nay, BEGGING me to do so
Really? You have a seller BEGGING you take a commission? As in you offered not to and they BEGGED you to reconsider?
Posted on 11/29/11 at 3:17 pm to Zilla
First of all.
YOU aren't paying the agent anything. It comes from the proceeds from the sale of the house and is deducted from the sellers side.
Secondly, the fee is negotiated between the seller and the listing agent. They're going to get paid what is on the contract they signed with the seller.
YOU aren't paying the agent anything. It comes from the proceeds from the sale of the house and is deducted from the sellers side.
Secondly, the fee is negotiated between the seller and the listing agent. They're going to get paid what is on the contract they signed with the seller.
Posted on 11/29/11 at 3:25 pm to VABuckeye
Here's the bottom line.
If you want to save money on a house in THIS market then make a lower offer for the house. Don't get attached to any one house and keep offering on houses that you like until you get the deal you want. It's a distressed real estate market in this country right now. Take advantage of it.
Trying to frick with a real estate commission that is already negotiated by other parties is silly when you already have market conditions present that can get you exactly what you want. A better house for a lower price.
If you want to save money on a house in THIS market then make a lower offer for the house. Don't get attached to any one house and keep offering on houses that you like until you get the deal you want. It's a distressed real estate market in this country right now. Take advantage of it.
Trying to frick with a real estate commission that is already negotiated by other parties is silly when you already have market conditions present that can get you exactly what you want. A better house for a lower price.
Posted on 11/29/11 at 3:44 pm to VABuckeye
quote:
Trying to frick with a real estate commission that is already negotiated by other parties
You're inflating the cost I have to pay to buy this house. I'm going to frick with that commision as much as I can because both the seller and buyer don't give a frick about your commission and you aren't worth it.
This post was edited on 11/29/11 at 3:45 pm
Posted on 11/29/11 at 3:54 pm to C
I'm not a realtor, skippy. You aren't fricking with anything of mine.
Posted on 11/29/11 at 3:55 pm to C
quote:
You're inflating the cost I have to pay to buy this house
This statement is bullshite. The market value is going to be the market value. A FSBO is going to try to sell his house for the same amount as someone using a realtor so HE can pocket the commission.
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