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Message
re: Realtor Payment -- Why is it a percentage of the home?
Posted on 6/28/17 at 10:50 am to Mingo Was His NameO
Posted on 6/28/17 at 10:50 am to Mingo Was His NameO
quote:
Because people like Baldona think they deserve more money than they worked for because "that's how it work
Lol. I'm not a realtor but I own real estate investments.
Guess what, good realtors are worth it. They sell properties faster and for more money. In big markets, having a big name realtor will sell properties itself because other realtors just want to see what their new listing is because they hand pick listings.
I'm sorry I play the game right.
Again, I wish I paid realtors less but instead of whining about their pay I figure out how to make money that includes their expense.
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Posted on 6/28/17 at 10:50 am to BabyCakes
There will be massive business model disruptions in this industry coming within the next 3 years. PurpleBricks, HouseSimple, eMoov, Tepilo are coming to the United States will create significant disruptions to the current model. PurpleBricks has already announced its intention of coming to the US. Its a publicly traded company started in 2014 which commands over 60% of the online real estate market in the Uk and is now the third largest real estate brokerage in the UK with over $11.4 billion in sales so far in 2017.
Wall Street research analysts are projecting that 50% of all US homes sold online will come from companies like PurpleBricks by the year 2020. Currently 5% of all US homes are sold online.
Wall Street research analysts are projecting that 50% of all US homes sold online will come from companies like PurpleBricks by the year 2020. Currently 5% of all US homes are sold online.
This post was edited on 6/28/17 at 10:56 am
Posted on 6/28/17 at 10:52 am to ihometiger
Interesting. I am really surprised this hasn't happened yet.
Posted on 6/28/17 at 10:52 am to baldona
quote:
If you have the choice between a pro bono first year lawyer or a $1000 an hour lawyer with 30 years experience on a possible 10 year jail charge, who do you go with? Money is not a question?
So, in your opinion, realtors that sell homes in the low to mid price ranges are out there killing themselves marketing your home? They are going the extra mile based on their experience?
Of course not. They list the home, add to the MLS, and wait for calls. They may host an open house or two.
Your example is also telling. Would you expect to pay the same price for the attorney with 30 years of experience as for the pro bono attorney? Or would their level of experience and their work product dictate different prices?
In the realtor world, the realtor with no experience and the realtor with 30 years of experience get the same fee, regardless of market conditions.
Posted on 6/28/17 at 10:54 am to Mingo Was His NameO
Why not? If you're a realtor and being paid the same flat fee for selling a $500k house as you get paid for selling $100k house, why even go after the expensive houses? You could sell 3-4 houses at $100k in the same time it takes to sell one $500k house.
Yep. There's probably a dozen or so of these part time realtors on my FB friend list that went to get their real estate license and make posts on FB to remind family and friends to call them if they're looking to buy or sell....but these people all have full time jobs or are stay at home moms with multiple young kids. Know damn well they'll be nearly useless as a realtor if they can't make any showings, inspections, or closings on weekdays because they have another job or would have to tow along a couple of toddlers
quote:
Half of them are stay at home moms that think they can just learn how to be a realtor from some blog in a day.
Yep. There's probably a dozen or so of these part time realtors on my FB friend list that went to get their real estate license and make posts on FB to remind family and friends to call them if they're looking to buy or sell....but these people all have full time jobs or are stay at home moms with multiple young kids. Know damn well they'll be nearly useless as a realtor if they can't make any showings, inspections, or closings on weekdays because they have another job or would have to tow along a couple of toddlers
This post was edited on 6/28/17 at 10:55 am
Posted on 6/28/17 at 10:54 am to ihometiger
Zillow has been around for years and has affected the market but not Monumentally.
A realtor is like a 3rd party consultant, sometimes they aren't worth a damn but other times they are worth their weight in gold.
I've been through 2 real estate transactions where I've bought from the owner and it sucks. They were emotional and jackwagons. They cost me a good bit of money and time both times.
A realtor is like a 3rd party consultant, sometimes they aren't worth a damn but other times they are worth their weight in gold.
I've been through 2 real estate transactions where I've bought from the owner and it sucks. They were emotional and jackwagons. They cost me a good bit of money and time both times.
Posted on 6/28/17 at 10:55 am to SlowFlowPro
quote:
a year or so ago i spent a lot of time trying to work out a much more efficient way to do FSBO, linking buyers and sellers like an Uber for real estate. i may start investing more time into that
i think these services are mainstream in europe, but i may be misremembering
Posted on 6/28/17 at 10:55 am to BabyCakes
quote:
They sign a standard listing agreement, take photos, list on MLS, and are available for showings.
As a title attorney who deals with a lot of agents, I would just like to say if that is all your agent is doing your agent is not very good
Also Fwiw, lots of bad agents out there, there are a lot that simply try to get by with as little work as possible.
You'd be surprised at home much a really good agent has to make just to recover the fees they spent on marketing your property if they are doing it aggressively
This post was edited on 6/28/17 at 11:18 am
Posted on 6/28/17 at 10:57 am to rattlebucket
quote:
Then negotiate a lower rate
When we sold our house last year, we used the same agent to buy and sell with. We only paid her 1% on the sell, but she got the 3% on the buy (since it didn't come out of our pocket). It worked out pretty well both of us..
Yeah it's racket yada yada yada...but at the end of the day, it's called capitalism; if there weren't a market for real estate agents, then they would go away.
Posted on 6/28/17 at 10:58 am to baldona
quote:
You can have 2 couples looking for a home, one makes an offer on their 2nd house in 1 day of looking and the other takes 90 days and looks at 35 different properties. If a realtor goes and looks at 35 properties over the course of 3 months and spends 50 hours how much is that worth?
$60 an hour per $100k of house. What has two thumbs and isn't crying for the realtor that spent 50 hours to sell a $300k house.
quote:
Let's take a $1 mil home with realtor fees of $60,000. It's really not that hard for a really good realtor to get you $20k more on that same house. Maybe even $50k more. So it's really not that hard for a really good realtor to make up the cost of a large portion of their income.
So, what you're saying is that someone is paying $60k to get $50k. Brilliant.
How long have you been a leech on the real estate market?
EDIT: I see that you claim you're not a realtor.
This post was edited on 6/28/17 at 11:02 am
Posted on 6/28/17 at 10:59 am to BabyCakes
quote:
In the realtor world, the realtor with no experience and the realtor with 30 years of experience get the same fee, regardless of market conditions.
Yes except that the best realtors usually get the better listings, and they do over and over. So while the young guy may get one big sale a year the experienced person gets 10 or 20.
Again, I'm happy to figure out a different way. But you can't just say I'm tired of paying this let's figure out a computer model to save me money. There are some businesses where having a high priced consultant is worth it, and real estate happens to be one.
I agree that many times realtors are not needed. But there are plenty of times that they are.
Posted on 6/28/17 at 11:00 am to REB BEER
quote:
it's called capitalism; if there weren't a market for real estate agents, then they would go away.
It is far from capitalism. It is a set price, regardless of experience or work performed. It is not based on supply and demand, and the price has been fixed by "competing" realtors. If someone undercuts, they are pushed out through a group boycott.
Posted on 6/28/17 at 11:00 am to baldona
quote:
Zillow has been around for years and has affected the market but not Monumentally.
A realtor is like a 3rd party consultant, sometimes they aren't worth a damn but other times they are worth their weight in gold.
I've been through 2 real estate transactions where I've bought from the owner and it sucks. They were emotional and jackwagons. They cost me a good bit of money and time both times.
Zillow isn't a real estate brokerage and PurpleBricks has smoked Zillow's arse in the UK and Australia. PurpleBricks offers a lot more than just a MLS feed for buyers/sellers which makes the concept really impressive given the tools they provide to homebuyers and sellers. PurpleBricks The Uberization of this industry is coming.
This post was edited on 6/28/17 at 11:05 am
Posted on 6/28/17 at 11:01 am to Hammond Tiger Fan
quote:
You could very well be on to something with this idea.
There are already apps like Zillow that help you find homes. Why not an app that can help you navigate the legal and listing fees like a turbotax?
Posted on 6/28/17 at 11:07 am to ihometiger
quote:
Zillow isn't a real estate brokerage and PurpleBricks has smoked Zillow's arse in the UK and Australia. PurpleBricks offers a lot more than just a MLS feed for buyers/sellers which makes the concept really impressive given the tools they provide to homebuyers and sellers. PurpleBricks The Uberization of this industry is coming.
I'll be the first to say I don't have a clue how they sell and buy homes elsewhere in the world, but it could easily be vastly different than the USA. I have a hard time believing someone else will being a model here before a domestic company could figure it out.
Again, I'm open to new things.
Posted on 6/28/17 at 11:09 am to BabyCakes
quote:
Is there any solid explanation as to why a realtor's payment is a percentage of the sale?
A home is exponentially harder to sell with an increased price. You could sell ten $100K homes way before one million dollar house. As price goes up every $100K, there are less buyers in that market, which makes it tougher to sell.
The problem is not that it is based on a percentage of the sale, it is that the percentage is too high. Why not 1% instead of 3%?
Posted on 6/28/17 at 11:10 am to BabyCakes
Real Estate Industry is ripe for disruption like Uber did to cabs.
Posted on 6/28/17 at 11:11 am to CoachChappy
From what I saw buying my first house the legal crap involved was almost nonexistent. Other than the realtor and lenders being a royal colossal agrevating pain in the arse, the process was easy. You can tell all these fools are in cahoots with each other though, they've got their process down pat from top to bottom, inspectors and appraisers and everything.
Posted on 6/28/17 at 11:12 am to ihometiger
quote:
PurpleBricks The Uberization of this industry is coming.
yep, thats the one.
the push back against them going mainstream in the US is going to be huge
Posted on 6/28/17 at 11:15 am to rocket31
Crony capitalism at werk.
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