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re: Strategies for buying a house USING the listing agent ....
Posted on 11/29/11 at 4:25 pm to VABuckeye
Posted on 11/29/11 at 4:25 pm to VABuckeye
quote:
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.
Link? A lot of people do FSBO because they know they can move the house quicker (due to the lower price) and still pocket the same net.
2
Posted on 11/29/11 at 4:26 pm to VABuckeye
quote:
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.
sigh
quote:
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.
sigh
Posted on 11/29/11 at 4:37 pm to Tiger JJ
And more are greedy and just want to cut the agent out of the transaction so they can pocket more money.
Posted on 11/29/11 at 4:38 pm to Tiger JJ
quote:
sigh
Show me a closing statement that shows the buyer writing a check and those funds going to the realtor.
Posted on 11/29/11 at 4:39 pm to VABuckeye
quote:
This statement is bullshite. The market value is going to be the market value.
As an example, do you really think cigarette prices are not a direct result of extremely high taxes?
Posted on 11/29/11 at 4:43 pm to C
So, you're saying if there were no realtors that people wouldn't push the market and try to get more for their house than the neighbor got? It's all about greed and home sellers are among the greediest.
BTW, no offense intended earlier. I probably responded in a harsher manner than I should.
BTW, no offense intended earlier. I probably responded in a harsher manner than I should.
Posted on 11/29/11 at 4:53 pm to C
quote:
As an example, do you really think cigarette prices are not a direct result of extremely high taxes?
Not apples to apples. There seems to be a feeling on this thread that the listing agent is going to pocket $18,000 on a $300,000 sale. That couldn't be further from the truth unless the listing agent is a broker and owns the brokerage firm.
Most agents are going to have a fee split with their broker (company). Most agents aren't all that successful so they're probably looking at a 40/60 split (or worse) with their broker. Most agents in my area (Northern Virginia) will list a house for less than 6%. However, real estate values are much higher here than in Louisiana so YMMV.
Say it is a 6% listing. If the agent got both sides in a 40/60 split they most they could pull in would be $7200. They're also self-employed so they are responsible for all their taxes including both sides of the SS deduction.
Bottom line is I think many people fail to realize how much of that commission actually goes to the person that works to sell the house. If there is an agent for the buyer that commission could drop to $3600 or so. Not that much money to make when the house can take months to sell.
Posted on 11/29/11 at 4:56 pm to VABuckeye
quote:
Not apples to apples. There seems to be a feeling on this thread that the listing agent is going to pocket $18,000 on a $300,000 sale. That couldn't be further from the truth unless the listing agent is a broker and owns the brokerage firm.
Most agents are going to have a fee split with their broker (company). Most agents aren't all that successful so they're probably looking at a 40/60 split (or worse) with their broker. Most agents in my area (Northern Virginia) will list a house for less than 6%. However, real estate values are much higher here than in Louisiana so YMMV.
Say it is a 6% listing. If the agent got both sides in a 40/60 split they most they could pull in would be $7200. They're also self-employed so they are responsible for all their taxes including both sides of the SS deduction.
Bottom line is I think many people fail to realize how much of that commission actually goes to the person that works to sell the house. If there is an agent for the buyer that commission could drop to $3600 or so. Not that much money to make when the house can take months to sell.
While all of this might be true, it has no bearing whatsoever on the direct question you were asked, again:
quote:
As an example, do you really think cigarette prices are not a direct result of extremely high taxes?
Stated more simply, are you actually arguing that the convenience store owner pays the taxes and not the buyer of the cigarettes simply because he is the one who submits the payment after monies are collected?
Posted on 11/29/11 at 4:58 pm to Tiger JJ
quote:
Stated more simply, are you actually arguing that the convenience store owner pays the taxes and not the buyer of the cigarettes simply because he is the one who submits the payment after monies are collected?
The seller has equity in the transaction in a real estate closing or they bring money to the table. If a seller doesn't have enough equity to cover the commission does he or does he not have to bring a check to the table to cover the realtor commission?
I'm not arguing anything about cigarette taxes. Taxes and commissions due are not an apples to apples comarison as I stated.
This post was edited on 11/29/11 at 5:00 pm
Posted on 11/29/11 at 4:59 pm to VABuckeye
quote:
Show me a closing statement that shows the buyer writing a check and those funds going to the realtor.
Show me a sales tax submittal statement that shows the end user of the cigarettes writing a check and those funds going to the government.
Posted on 11/29/11 at 5:01 pm to Tiger JJ
quote:
Link? A lot of people do FSBO because they know they can move the house quicker (due to the lower price) and still pocket the same net.
I did it. I listed mine FSBO at market value so I could pocket the extra cash. I also follow the home prices in my neighborhood and the prices of FSBOs are alway market price. In fact I've seen many listed by agents recently sell faster than the FSBO, b/c the FSBO sellers are trying to get last year's price.
Posted on 11/29/11 at 5:01 pm to VABuckeye
quote:
The seller has equity in the transaction in a real estate closing or they bring money to the table. If a seller doesn't have enough equity to cover the commission does he or does he not have to bring a check to the table to cover the realtor commission?
He does. But no fees will ever be paid without a transaction in the first place.
quote:
Taxes and commissions due are not an apples to apples comarison as I stated.
Yes, you stated that - and then went on to write several paragraphs that had nothing to do with the topic whatsoever.
Posted on 11/29/11 at 5:02 pm to Tiger JJ
I collect sales tax in my business. It is collected and the paid to the government. Sales tax is tacked on to the selling price. Real estate commissions are negotiated INTO the sales price.
Posted on 11/29/11 at 5:03 pm to ashy larry
Thank you. My point exactly.
Posted on 11/29/11 at 5:04 pm to ashy larry
quote:
I did it. I listed mine FSBO at market value so I could pocket the extra cash. I also follow the home prices in my neighborhood and the prices of FSBOs are alway market price. In fact I've seen many listed by agents recently sell faster than the FSBO, b/c the FSBO sellers are trying to get last year's price.
Oh, I've also seen my fair share of delusional FSBO people who are simply unable to come to terms with where the market is. Typically, they are so delusional that even an incompetent listing agent knows enough to refuse the listing.
I personally helped a guy in my office with an FSBO he was doing for his mother's house when she got moved to a home. He was able to lower the listing price by like $20K. And man was he glad he had that little edge. His transaction closed in the nick of time before shite REALLY went south. If he had listed with an agent, he would have been shite out of luck.
Posted on 11/29/11 at 5:04 pm to Tiger JJ
quote:
that had nothing to do with the topic whatsoever.
The topic was off track way before I appeared.
Posted on 11/29/11 at 5:05 pm to Tiger JJ
I'm not completely disagreeing with you. What I do know is that when I sold my last house if there was no realtor involved it would have been me and not the buyer that walked away with over $25,000 more in my pocket.
Posted on 11/29/11 at 5:06 pm to VABuckeye
quote:
Bottom line is I think many people fail to realize how much of that commission actually goes to the person that works to sell the house.
I agree 100%. for the record, I am not a realtor nor am I married to one. But I have seen friends and family abuse the crap out of their realtors and think nothing about it. My cousin used a realtor to show her over 30 houses in a six month span and didn't buy a damn thing. She later said she wasn't ready to buy. Now how much time, effort, & gas did the realtor piss away and not make a penny? But then people turn around and piss and moan about real estate commissions being too high.
Posted on 11/29/11 at 5:06 pm to VABuckeye
quote:
I collect sales tax in my business. It is collected and the paid to the government. Sales tax is tacked on to the selling price.
Who pays the sales tax? Who remits the sales tax to the government? The buyer or the seller.
quote:
Real estate commissions are negotiated INTO the sales price.
I'm not sure which distinction you're trying to make here. What does "tacked on" even mean? Sales taxes are also a % function of the final price.
Posted on 11/29/11 at 5:11 pm to ashy larry
quote:
She later said she wasn't ready to buy. Now how much time, effort, & gas did the realtor piss away and not make a penny? But then people turn around and piss and moan about real estate commissions being too high.
So she gets to use the services for free, while someone else who maybe only looks at 3 houses, then buys, has to pay 6% of a $300,000 purchase. That's one person who seriously overpaid and one person who seriously underpaid. Now to the realtor maybe it all evens out in the end but that won't help the customer who gets screwed.
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