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re: Real estate agents, are they really needed anymore?
Posted on 8/2/21 at 7:17 am to HouseMom
Posted on 8/2/21 at 7:17 am to HouseMom
quote:
But neither do realtors. The commission you pay as a seller is split with the buyer's agent, then the broker takes a cut from that, and then it's taxable income. Plus, most agents are self-employed, so there is an associated tax burden.
He was saying that it is worth most individuals’ time to not use them because it’s so expensive.
Self-employed people have tax advantages that employed people do not.
1
Posted on 8/2/21 at 7:18 am to TJG210
quote:
quote:
Do appraisers charge based on % cost of the home or even something materially different like sq footage?
Banks put out an appraisal job with a dollar figure attached to it from what I understand, some loan types pay more than others.
It is a flat fee and I think the maximum fee allowable for a residential appraisal is also regulated. Commercial is very different but fees cannot be based on value calls for obvious reasons.
This post was edited on 8/2/21 at 7:21 am
Posted on 8/2/21 at 7:23 am to SaintsTiger
quote:
Self-employed people have tax advantages that employed people do not.
And disadvantages
You better have a good accountant because you're on the hook for the full cost of SSN (14%)
Posted on 8/2/21 at 7:26 am to flip82lsu
Doesn't this just go back to paying people for the shite you don’t want to do?
Cutting grass, changing oil, painting your house, selling a house. Hell, my neighbor gets his groceries delivered for a fee bc he doesn’t like going to the store.
Cutting grass, changing oil, painting your house, selling a house. Hell, my neighbor gets his groceries delivered for a fee bc he doesn’t like going to the store.
Posted on 8/2/21 at 7:29 am to HouseMom
quote:
The commission that U.S. home sellers typically pay to real estate agents is under fire, with the real estate industry accused of antitrust violations and extracting exorbitant fees.
Why it matters: Some legal experts predict that an antitrust lawsuit over brokers' fees will reach the Supreme Court — and say the many challenges to the current system could upend the market and make it cheaper to sell a home. The big picture: One thing the challengers are seeking is "the uncoupling of commissions, so that both buyers and sellers negotiate and pay their own broker compensation," per the Consumer Federation of America. Only that change “can foster the price competition that exists in most other consumer markets,” the group says.
How it works: The seller's real estate agent typically charges a 5%–6% commission and shares it with the buyer's agent. A Justice Department settlement with the National Association of Realtors (NAR) — which will be finalized as early as mid-February — will make it illegal for a buyer's agent to characterize their services as free, as often happens. Real estate websites will have to disclose publicly what percentage of a sale the buyer's agent will reap. "The settlement will discourage blatant discrimination against discount brokers and the steering of buyers to high-commission properties," but doesn't go far enough, Stephen Brobeck, a senior fellow at the Consumer Federation of America, said in a statement.
Driving the news: Several powerful forces are going up against NAR and the rules governing home sales in various states: The Justice Department settlement was filed simultaneously with an antitrust lawsuit against the association in November, demanding changes to rules it called anti-competitive. Two lawsuits seeking class-action status, in Illinois and Missouri, were filed by plaintiffs who say they were overcharged as a result of NAR's system. REX Real Estate, a discount brokerage, is suing Oregon and other states that bar real estate agents from giving rebates to consumers. Jack Ryan, founder and CEO of REX, is among those who argue that NAR's commission system suppresses U.S. homeownership rates and reduces overall household wealth. "This is a great David vs. Goliath story, both in terms of the odds but also in terms of the moral implications," he said. His company charges 2%–2.5% to sell a home, similar to the prevailing rates in other developed countries.
Of note: Real estate agent fees are a $100 billion-a-year business, per a 2019 Consumer Federation of America report. "These commissions — usually $15,000 to $18,000 on the sale of a $300,000 home — represent one of the most expensive products purchased by many consumers," the report said.
Where it stands: The lawsuits in Missouri and Illinois — filed by prominent plaintiffs' firms against NAR and an all-star cast of brokerages — are proceeding. In the Illinois case, Judge Andrea R. Wood "said the plaintiffs would have paid 'substantially lower' commissions if not for the rules established by the Realtors association and followed by the brokerages," per the NYT. REX's case in Oregon is also moving forward, and the company plans to replicate it in the 10 or so other states where brokers are not permitted to give fee rebates. NAR — which has 1.4 million members — tells Axios it is confident it will prevail in the lawsuits and that the DOJ settlement largely just makes more transparent practices that were already in place.
One change: "When you see listings online in the future, you will likely see the offer of compensation that brokers are offering to each other," Katie Johnson, NAR's general counsel, tells Axios. In an information page for brokers on the NAR website, Johnson says the class-action complaints "mischaracterize NAR rules and MLS policy." Brokers are advised: "Discussions regarding these lawsuits should be grounded in the bigger picture of the value of REALTORS® and the MLS system to both buyers and sellers." What they're saying: Traditional real estate agents say that people who use discount brokers can get burned by low levels of service and marketing. "You get what you pay for," Andrea Paro, an agent at Compass Real Estate in Bethesda, Maryland, tells Axios. Yes, but: People who support REX and its controversial CEO say that despite the crazy sellers' market — with existing homes commanding record prices — Americans could extract more wealth from their homes and have greater mobility if the fees were lower and more competitive. "I think this is going to trial and the plaintiffs win," said Rob Hahn, managing partner at the real estate consultancy 7DS Associates, who blogs about real estate under the name Notorious Rob. "You could be looking at $50, $70 billion in damages." The bottom line: This is an issue we're likely to hear a lot more about — especially under a Biden DOJ.
LINK
Yup the fees are overpriced. Highest agent commissions in the world.
Posted on 8/2/21 at 7:32 am to kciDAtaE
quote:
Doesn't this just go back to paying people for the shite you don’t want to do? Cutting grass, changing oil, painting your house, selling a house. Hell, my neighbor gets his groceries delivered for a fee bc he doesn’t like going to the store.
It’s different because the real estate industry has government created barriers to competitive pricing. Brokers are legally required. Sellers agents tell the buyer that what they’re doing is free to them. Imagine if your grass man had a lobbying team inflating his price.
Posted on 8/2/21 at 7:34 am to SaintsTiger
quote:
Yet here you are still arguing and giving additional details about your transaction on a public forum
Who cares if it's a public forum or not?
quote:
was obviously never going to work may make some wonder why you tried it in the first place.
LOL.Because it was tried with agents before FSBO and they were lazy and incompetent.Why I said a good one was worth it
Still wondering why you get so worked up about someone else's decision to use a real estate agent.
Posted on 8/2/21 at 7:37 am to SaintsTiger
quote:
Imagine if your grass man had a lobbying team inflating his price.
Then I’d cut it myself if it wasn’t worth their offered price.
Posted on 8/2/21 at 7:42 am to RD Dawg
quote:
Who cares if it's a public forum or not? quote: was obviously never going to work may make some wonder why you tried it in the first place. LOL.Because it was tried with agents before FSBO and they were lazy and incompetent.Why I said a good one was worth it Still wondering why you get so worked up about someone else's decision to use a real estate agent.
To spell it out, you posted information about your real estate deal. Then when someone you replied you said it was none of their business.
You’re the one who seems worked up.
Posted on 8/2/21 at 7:43 am to llfshoals
quote:
I’m closing this week for a very nice lady I could have spared myself a year of trying to find a house that works for her and helping her with the mortgage process.
That’s on you not knowing how to cut bait on a poor returning client. If you’re going to be in this business, you have to know who is worth the time and who isn’t. Learning to read people is inherent to success. Otherwise it’ll be like this all the time. A time suck.
Posted on 8/2/21 at 7:52 am to llfshoals
quote:
If that were true the one I’m closing this week for a very nice lady I could have spared myself a year of trying to find a house that works for her and helping her with the mortgage process.
If she's taking up too much of your time, then move on.
I had an agent tell me how valuable his time was and told me that he would only be able to show me "2, maybe 3" houses at most at which time I'd have to decide between them. He did this while presenting me with an "exclusive buyer's contract" whereby I would have to agree to only use him or be responsible for paying him a real estate commission equal to 3% of whatever I purchased.
I literally laughed at him and walked out. He chased me out the building and begged me to reconsider. I just looked at him and told him that he was f*cking insane.
The next morning, he sends me a list of houses. He said that he could show me a couple. The worst part was that the houses were not in the area I was looking in and when I got to the last page I saw that it was actually prepared for someone else.
I wrote him back and said, "In case you didn't get the HINT from yesterday -- YOU'RE F*CKING FIRED. Don't contact me again."
What it all comes down to is that whether an agent is worth the commission depends upon the market and the time. Right now, in many, many, many parts of the country, most people could pay a couple hundred dollars to put their house on the MLS system on a Friday and get multiple offers before Monday.
As far as pricing, for people who don't have EXTREMELY unique houses, and who live in just regular neighborhoods or subdivisions, Zillow, Realtor.com, Redfin, etc. give sellers all the information they need to ask for a fair/reasonable price. A seller can look at the houses that have recently sold in their neighborhood and see the condition and upgrades in the house and make a common sense estimate of what their house is worth. Sure, there will be some sellers who are ridiculous with their prices but most people with even the slightest bit of common sense can judge their house against the other houses sold in their neighborhoods.
We no longer live in the 70's and 80's when you NEEDED an agent to get on the MLS system and find out what houses are for sale without having to go drive around neighborhoods for hours. The internet has changed EVERYTHING in residential real estate sales. Unfortunately, the Realtor's Associations have refused to recognize this simple, simple fact.
Right now, anyone paying 6% is a f*cking moron.
This post was edited on 8/2/21 at 8:07 am
Posted on 8/2/21 at 7:55 am to DiamondDog
quote:my clients aren’t dollar signs, they’re people. Some of whom need more help than others.
That’s on you not knowing how to cut bait on a poor returning client. If you’re going to be in this business, you have to know who is worth the time and who isn’t. Learning to read people is inherent to success. Otherwise it’ll be like this all the time. A time suck.
I made close to 50k last month. I think I’ll be all right ??
Posted on 8/2/21 at 8:01 am to kciDAtaE
quote:
Then I’d cut it myself if it wasn’t worth their offered price.
If the government hadn’t interfered then the price would we lower and so you wouldn’t have to cut it yourself.
Posted on 8/2/21 at 8:01 am to llfshoals
quote:
my clients aren’t dollar signs, they’re people.
Oh, for F*CK'S SAKE.
Get the f*ck out of here. You don't give a royal f*ck about these people.
Posted on 8/2/21 at 8:06 am to SaintsTiger
quote:
Highest agent commissions in the world.
I don't disagree with this. I love the flat fee agencies popping up. Sellers and buyers can choose what level of service they want, and it's a much more streamlined process. I don't think a commission should be linked to a property at all. It needs to be settled between the parties to a transaction and their chosen representatives.
I was merely pointing out that a listing agent doesn't just walk away with the entirety of the commission.
Posted on 8/2/21 at 8:08 am to llfshoals
quote:
my clients aren’t dollar signs, they’re people. Some of whom need more help than others.
My father who’s as a Real Estate agent and who told me it was the biggest scam going, told me directly the hardest part is having patience with a bunch of goofballs and knowing when to cut bait.
He wouldn’t even deal with a client until they had an approval letter from a mortgage broker.
Your old lady must have had to go back 3 times if it took a year because those are only good for what 90-180 days?
Posted on 8/2/21 at 8:12 am to MMauler
quote:just because you’re a waste of skin don’t assume everyone else is.
Oh, for F*CK'S SAKE.
Get the f*ck out of here. You don't give a royal f*ck about these people.
I care about my clients, which good realtors do. It’s why I have a 5 star rating on my reviews. And the only thing I ask clients to do is tell the truth.
Posted on 8/2/21 at 8:13 am to SaintsTiger
It’s a lot higher than 100 billion. We’ll do 1.7 billion in our MLS alone.
Posted on 8/2/21 at 8:15 am to llfshoals
quote:
I care about my clients
The only f*cking thing you give a f*ck about is that they contributed to your "$50,000 last month."
If they went with another agent, you wouldn't give them the time of f*cking day.
This post was edited on 8/2/21 at 8:17 am
Posted on 8/2/21 at 8:16 am to flip82lsu
quote:
Real estate agents, are they really needed anymore?
No, they will go the way of Blockbuster and Sears once the federal gov breaks up their monopoly. The internet has replaced all need for these people.
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