- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: How do realtors get paid?
Posted on 10/18/16 at 8:40 am to Rebel
Posted on 10/18/16 at 8:40 am to Rebel
quote:
A good realtor is well worth the expense.
I learned this when I was trying to escape from Madison, MS. First realtor didn't do shite for about 8 months. My friend gave me a recommendation for another realtor and she sold my house in about 5 weeks.
If you want to see a real racket then you should see the brokers that handle rental apartments in NYC. These people make a killing in fees showing rental units. Insane.
We just bought a 2 bedroom in NYC and I figure between broker fees and taxes, I will need to sale my place for at least 10% more than my purchase price plus renovations just to break even.
1
Posted on 10/18/16 at 8:43 am to Y.A. Tittle
quote:
It's 3% each (buyer/seller). If there's only one realtor involved, that one will typically try to claim the whole 6%.
Last time I sold we both used the same realtor and he only took 3% total.
I definitely made sure of that before signing anything though.
Posted on 10/18/16 at 8:50 am to MSTiger33
quote:
quote: A good realtor is well worth the expense. I learned this when I was trying to escape from Madison, MS. First realtor didn't do shite for about 8 months. My friend gave me a recommendation for another realtor and she sold my house in about 5 weeks. If you want to see a real racket then you should see the brokers that handle rental apartments in NYC. These people make a killing in fees showing rental units. Insane. We just bought a 2 bedroom in NYC and I figure between broker fees and taxes, I will need to sale my place for at least 10% more than my purchase price plus renovations just to break even.
That's because once the negotiations are done in NYC the realtors are out of the transaction and attorneys take over. Attorneys are more expensive than agents.
The model is changing a bit with the internet. But brokerages are changing their models as well. My firm takes $415 per transaction regardless of the sales price/commission agreement. This allows me to pass the savings on to my clients and be more competitive in the market.
Posted on 10/18/16 at 9:05 am to Dale Murphy
It's all paid by the buyer
Every penny
Every penny
Posted on 10/18/16 at 9:06 am to ItNeverRains
The seller pays all the commission that's agreed upon before the house is listed. Real estate agents are no different than any other profession. Knowledgable hard working agents are worth every penny. If you're a buyer, you can work with the best or worst agent out there and it cost you the same. Keep that in mind when buying. There's a bunch of part timers that don't have the time or experience to serve you in the manner you deserve. When selling, a good agent will go all out to help you get market value in a timely manner. Or you could hire someone that will drive a sign in the front yard and wait on the commission check. Bottom line, don't lump them all together. Get references and interview before you start working with one.
Posted on 10/18/16 at 9:09 am to Scumfrog
As someone who deals with hundreds of RE transactions a year I can honestly say a good realtor is worth it. Just make sure you find a good one.
Posted on 10/18/16 at 9:20 am to Balloon Huffer
I get how a realtor is helpful, but on my last home sale, I listed FSBO, had a realtor bring me a buyer, she did all the paperwork and I gave her 3%. Saved myself 3%. It was quite easy.
Not sure why people aren't doing that all the time.
Not sure why people aren't doing that all the time.
Posted on 10/18/16 at 9:39 am to kywildcatfanone
This is a perfect example.
You saved 3% commission, this is not the same as your net.
Did you get full listing price? Did you get max value for the home? What amount of closing costs and pre-paids did you get roped in for? Who paid for marketing? Who paid for professional pictures? Who paid for staging?
I'm glad it worked out for you, it sounds like you are happy.
But not having to pay a sellers agent 3% does not show that you got the best deal....
You saved maybe $5000 on that commission, but perhaps you listed for $5,000 too less, and the buyers agent squeezed a few extra thousand off the top by showing you pages of "comps" and powering you down on value. Maybe they shaved another few thousand on you for closing costs, forced you to leave the fridge and dining room table.
etc.etc. PS - not saying any of this happened to you, but this stuff happens all the time.
How do I know? because I force my realtors to do this very thing. I am an investor, not a realtor. If anyone should dislike realtors --- it is me. I paid almost $80,000 in realtor commissions alone last year.
But believe it or not, they saved me a shite ton of money!
You saved 3% commission, this is not the same as your net.
Did you get full listing price? Did you get max value for the home? What amount of closing costs and pre-paids did you get roped in for? Who paid for marketing? Who paid for professional pictures? Who paid for staging?
I'm glad it worked out for you, it sounds like you are happy.
But not having to pay a sellers agent 3% does not show that you got the best deal....
You saved maybe $5000 on that commission, but perhaps you listed for $5,000 too less, and the buyers agent squeezed a few extra thousand off the top by showing you pages of "comps" and powering you down on value. Maybe they shaved another few thousand on you for closing costs, forced you to leave the fridge and dining room table.
etc.etc. PS - not saying any of this happened to you, but this stuff happens all the time.
How do I know? because I force my realtors to do this very thing. I am an investor, not a realtor. If anyone should dislike realtors --- it is me. I paid almost $80,000 in realtor commissions alone last year.
But believe it or not, they saved me a shite ton of money!
This post was edited on 10/18/16 at 9:41 am
Posted on 10/18/16 at 9:57 am to Dale Murphy
Real estate agents get paid by the Broker.
Posted on 10/18/16 at 9:57 am to Rouge
If you think 300k is a brag I'm sorry for your situation. That's pretty standard around our market. Most decent houses will run you $280+
This post was edited on 10/18/16 at 9:58 am
Posted on 10/18/16 at 9:58 am to Dale Murphy
According to pornhub, the hot female realtors also get paid by getting sex from their client.
Posted on 10/18/16 at 10:03 am to Dale Murphy
6% both realtors get 3%(5% both get 2.5%) and if they are not real estate brokers they have to work for someone who is a broker and the broker takes half of the 3%.
So realtor sells a house for 200k they make 6k(3%), they give 3k to broker(1.5%)if they are not one, and keep 3k(1.5%)
So realtor sells a house for 200k they make 6k(3%), they give 3k to broker(1.5%)if they are not one, and keep 3k(1.5%)
Posted on 10/18/16 at 10:03 am to Balloon Huffer
I was very happy with my experience, got my full listing price, knew what the market was in my area, it's not hard to know that.
Again, not saying a realtor isn't valuable, but for me, they are more valuable to bring me a buyer and do the paperwork.
Again, not saying a realtor isn't valuable, but for me, they are more valuable to bring me a buyer and do the paperwork.
Posted on 10/18/16 at 10:04 am to Dale Murphy
Many Doll Hairs.
Posted on 10/18/16 at 10:07 am to Dale Murphy
Real estate agents are no better than used car salesman, except the deal in bigger figures. The problem with real estate agents is they overprice everything so they can make their cut. Look at what they are doing post flood. I've seen some of the biggest pieces of crap homes on the market for $195 sq/ft. They are just ripping people off.
Posted on 10/18/16 at 10:09 am to Rebel
I flip 1 or 2 houses a year. I always do FSBO. Have never had to sit on a property for longer then a month and always get real close to asking price. Buyer normally comes with an agent that does all the contract and leg work and only cost me 3% instead of 6. Had last property listed for 228k and got 225k..but did pay 3k of buyer closing cost. Saved me over 6k on commissions
Posted on 10/18/16 at 10:11 am to KLSU
quote:
6% both realtors get 3%(5% both get 2.5%) and if they are not real estate brokers they have to work for someone who is a broker and the broker takes half of the 3%. So realtor sells a house for 200k they make 6k(3%), they give 3k to broker(1.5%)if they are not one, and keep 3k(1.5%)
Any affiliate broker who can't negotiate a better split than 50/50 with a principle broker probably shouldn't be in real estate. ??
Real Estate is not a one size fits all industry. It's amazing the misconceptions I read on this board with regularity.
Posted on 10/18/16 at 10:13 am to ItNeverRains
quote:
It's amazing the misconceptions I read on this board with regularity.
and several in this thread
Posted on 10/18/16 at 10:17 am to Balloon Huffer
I have sold two houses in the past 20 years and never used a realtor.
Posted on 10/18/16 at 10:18 am to herbstreit4
Yeah we did FSBO in our last sale. It was super easy and we made out well with the sale. Of course we were in a high demand area so that helped.
In negative was the few airhead female realtors who came in with low ball offers and tried to back it up with shitty comps
In negative was the few airhead female realtors who came in with low ball offers and tried to back it up with shitty comps
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News