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Message
re: Realtor Payment -- Why is it a percentage of the home?
Posted on 6/28/17 at 2:13 pm to SlowFlowPro
Posted on 6/28/17 at 2:13 pm to SlowFlowPro
quote:
the idea is already in progress elsewhere but the real money maker was an aspect of the app i did not disclose
Too late. It's mine.
0
Posted on 6/28/17 at 2:14 pm to baldona
quote:
So when capitalism doesn't go your way it's a cartel, collusion, etc.?
what is capitalist about a service that is only offered by people anointed by the state, in a regulatory scheme that prevents any sort of real competition? real estate agents are not within capitalism and are crony capitalists at best
Posted on 6/28/17 at 2:17 pm to Ben Hur
quote:
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.
I don't buy that argument. There's probably a lot more headaches going up to jumbo mortgages, but besides that I bet the clientele buying a $300K house may have their ducks in a row a lot more than someone buying a $50K house.
Posted on 6/28/17 at 2:18 pm to rocket31
quote:
make it ebay style, like an auction
that could actually help the "real money" in the app
you can also add upsells like title examination, etc via preferred/connected title companies
Posted on 6/28/17 at 2:19 pm to SlowFlowPro
The real crime is the title insurance. RE agents and brokers hustle for a sale... title companies reap every single reward surrounding it.
Posted on 6/28/17 at 2:19 pm to SlowFlowPro
quote:
what is capitalist about a service that is only offered by people anointed by the state, in a regulatory scheme that prevents any sort of real competition? real estate agents are not within capitalism and are crony capitalists at best
Please sit down for this because it's going to blow your mind. Crony capitalism is capitalism in the real world. It's time to put that liberal college book down and walk into the real world. Because that's how things work.
Again, its best to learn to play the game instead of whining about the rules from the bench.
The real money is not made or lost in the real estate fees.
Posted on 6/28/17 at 2:20 pm to Tigerbait337
quote:
It's not price fixing. It's a realtor refusing to work for a lower amount.
Then why are the top realtors not demanding a higher commission than 6% for there services?
In every other fee based profession the fees for identical services can be all over the map, as someone posted earlier you can hire a $100/hour lawyer or a $1000/hour lawyer to perform the exact same work, One would assume the client knows the $1000/Hour lawyer is bring more talent to the table, never heard of this happening in real estate.
Posted on 6/28/17 at 2:21 pm to baldona
quote:
said you are ignorant in believing there are set fees and yet you haven't replied to that?
Like many others have said, while there is no "set fee" realtors have colluded together to make it near impossible to secure a rate other than 6% without much deviation.
quote:
The atl guy charges 1/3 of a percent. FSBO can be done for 0%
So one guy in Atlanta is doing something different. Again, the super majority are doing the same exact thing, charging 6% no matter how much work is involved.
Look, you may have a good realtor and think he is worth what you are paying for him. If that's so, then congrats you are the exception to the rule. I am arguing that the large majority realtors that work with standard buyers do not earn what they are being paid, and that's why they have a terrible reputation. There's 2 ways to change this.
1. Realtors can try to clean up their own profession, but who knows if they want to do that.
2. Consumers can decide they won't pay for it anymore. This is really hard to do though because of the collusion within the industry. Someone else's posted that 95% of all transactions are done at the same rate so while they may not be technically price fixing realtors and their lobbyists have worked to make the 6% fee standard no matter what. If a small time realtor tries to undercut prices, the big guys are going to push them out, and then we have time crowd like you that says "well that's just grow it works." If everybody took that approach nothing would ever change and there'd npbe mno innovation.
Posted on 6/28/17 at 2:23 pm to baldona
quote:
Again, its best to learn to play the game instead of whining about the rules from the bench.
Posted on 6/28/17 at 2:26 pm to SlowFlowPro
quote:
JT used to have a great idea for realtors where there is a set, expected amount for a house (what you'd normally expect the house to go for). if the realtor gets anything over that amount (as in, they did their job well), they get a large chunk of that increase. in this system, everyone wins
which is actually illegal, as you might already know as that resembles what's called a "net listing"
so there's that
Posted on 6/28/17 at 2:26 pm to baldona
quote:
So when capitalism doesn't go your way it's a cartel, collusion, etc.? It's capitalism because realtors prefer to work for more money?
Do you think anti-trust laws are BS or should monopolies be allowed because of capitalism? What about lending regulations? If someone is willing to take out a loan they can't afford, but it makes the bank ,obey should it be allowed? There's all sorts of regulations that take away economic freedom, but without them the economy is less efficient
Posted on 6/28/17 at 2:27 pm to 19thHole
quote:
which is actually illegal, as you might already know as that resembles what's called a "net listing"
shocking they'd push to have a more rational method be illegal
SHOCKED i tell you
Posted on 6/28/17 at 2:27 pm to SlowFlowPro
or lawyers?
Posted on 6/28/17 at 2:28 pm to Mingo Was His NameO
6% is extremely rare now. 5% is the norm. And unless you represent the buyer and the seller, you only are getting half. Then unless you are a broker, you only get half again.
Posted on 6/28/17 at 2:28 pm to 19thHole
quote:
or lawyers?
i've posted many times i'm against the draconian licensure involved in practicing law
i know plenty of paralegals that are just as capable of basic representation in "lower" areas (family, criminal, etc)
i mean immigration courts allow non-lawyers to help people and that's a lot more complex than basic family or criminal law
Posted on 6/28/17 at 2:30 pm to BilJ
They're salesman...
Posted on 6/28/17 at 2:31 pm to SlowFlowPro
fair enough, just making sure we are keeping the intellectual conversation honest 
Posted on 6/28/17 at 2:32 pm to Mingo Was His NameO
quote:
So one guy in Atlanta is doing something different. Again, the super majority are doing the same exact thing, charging 6% no matter how much work is involved.
No man, the majority do 6% because that is where negotiations start. Most people are just too dumb or ignorant to ask for less. That's where you are wrong. That's like arguing against car dealerships sales methods. You just have to know the list price/ percentage is not final and open to negotiation.
I don't use the same realtor anyway unless they come to me. On most of my investment properties I go to the listing agent directly and I offer 3-4% total as they are doing both sides. I'm basically representing myself.
Most markets there are too many agents and not enough properties to do high quantity sales. That's what I was saying that guys want to make money, they'll only drop the percentage if it will help lead to more sales. The market determines that.
All these companies like zillow that list houses online are great. And anything new is just fine and dandy. But a home has way too many variables. You need boots on the ground to truly get the entire feeling. Pictures don't show everything.
This post was edited on 6/28/17 at 2:37 pm
Posted on 6/28/17 at 2:33 pm to 19thHole
being a lawyer, i have to deal with all of the "old school" rules that often make no sense (and in some cases, aren't even clear rules that the LASC creates out of thin air). i'll give you one: you can't own part of a law firm in LA without being licensed. that makes no sense, especially in the modern era
real estate is worse, though. once you get licensed as a lawyer, you can practice. if the bar had the same rules as RE, you couldn't practice on your own and had to split all revenue with an older lawyer. you couldn't even make your own money until you practiced for 4 years and then got another state-certified status. that's insane to me
real estate is worse, though. once you get licensed as a lawyer, you can practice. if the bar had the same rules as RE, you couldn't practice on your own and had to split all revenue with an older lawyer. you couldn't even make your own money until you practiced for 4 years and then got another state-certified status. that's insane to me
Posted on 6/28/17 at 2:35 pm to SlowFlowPro
open door and other similar sites are out there (opendoor in particular since Uber founder is behind it)
at the end of the day, a real estate transaction is somewhat more complicated than simply buying something off a retail shelf......you know who would love that system? lawyers. there would be TONS of suits between buyer/seller there's no question in my mind
at the end of the day, a real estate transaction is somewhat more complicated than simply buying something off a retail shelf......you know who would love that system? lawyers. there would be TONS of suits between buyer/seller there's no question in my mind
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