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re: Why are real estate agents commission based?
Posted on 7/7/22 at 9:21 am to QuothTheRaven
Posted on 7/7/22 at 9:21 am to QuothTheRaven
quote:same with the house we just bought
Our agent showed us a house that had not hit the market yet last weekend and we made an offer the same day. Offer was accepted that night. This would not have happened without an agent.
Put a house up for sale fsbo a few years ago. All I got was agents wanting to list it and people wanting to see it who could not buy. Raised the price to cover commission and listed with an agent. Full price offer in 9 days. This was pre covid.
1
Posted on 7/7/22 at 9:26 am to SlidellCajun
quote:
SlidellCajun
Is obviously an agent
Posted on 7/7/22 at 9:29 am to madamsquirrel
quote:
people wanting to see it who could not buy.
Oh man. I know people like this. If I was a seller's realtor or the seller, these people would drive me crazy.
Posted on 7/7/22 at 9:32 am to tigersfan1989
The commission is too high in most situations but the house I currently live in we looked at before it hit the market in a time where buying a house once you saw it online was already too late.
We also got to look at several others before they hit the market (a few still having some final work done) that we would have never known about without a realtor.
We also got to look at several others before they hit the market (a few still having some final work done) that we would have never known about without a realtor.
Posted on 7/7/22 at 9:33 am to BabyTac
Maybe you should get your real estate license.
Posted on 7/7/22 at 9:41 am to stout
You have never looked at the stats.
Posted on 7/7/22 at 9:45 am to tigersfan1989
Really depends on how the sale goes. Offers are often more complicated. For example/
Offer with contingency of buyer needing to sell their home first.
Leaseback if for some reason you needed to stay in your home even 2 day after close date.
Are you going to qualify buyers yourself?
Are you going to waste time showing the home to people that can never get qualified to buy the house regardless of what they say?
Are you going to deal with showing the house to strangers, collecting IDs first?
When it comes time for inspections and repair requests do you know what is reasonable, expected, normal?
Does your house need to be staged for photography?
Professional photography often needed for nicer homes.
Who is going to writeup the contract… do you pay someone to do that?
If a few contracts fall through because buyer not qualified and couldn’t get a loan…. You are paying someone to write new contracts each time? These costs add up.
A lot of variables to consider. I will say if the sale is straightforward with an agreed price and no issues then you can do it yourself or get discounted assistance by negotiating commission down. Remax might come down 1% so a total of 5%. They will normally split that discount on buy side and sell side. Do 2.5% on both sides. This is disclosed in the details the buyer agent will see.
If you think you can sell the house on your own then give it a shot. If you think the selling agent can get you 3-4% more then it really is a wash without the hassles. The learning curve has the potential to be costly.
Offer with contingency of buyer needing to sell their home first.
Leaseback if for some reason you needed to stay in your home even 2 day after close date.
Are you going to qualify buyers yourself?
Are you going to waste time showing the home to people that can never get qualified to buy the house regardless of what they say?
Are you going to deal with showing the house to strangers, collecting IDs first?
When it comes time for inspections and repair requests do you know what is reasonable, expected, normal?
Does your house need to be staged for photography?
Professional photography often needed for nicer homes.
Who is going to writeup the contract… do you pay someone to do that?
If a few contracts fall through because buyer not qualified and couldn’t get a loan…. You are paying someone to write new contracts each time? These costs add up.
A lot of variables to consider. I will say if the sale is straightforward with an agreed price and no issues then you can do it yourself or get discounted assistance by negotiating commission down. Remax might come down 1% so a total of 5%. They will normally split that discount on buy side and sell side. Do 2.5% on both sides. This is disclosed in the details the buyer agent will see.
If you think you can sell the house on your own then give it a shot. If you think the selling agent can get you 3-4% more then it really is a wash without the hassles. The learning curve has the potential to be costly.
This post was edited on 7/7/22 at 12:41 pm
Posted on 7/7/22 at 9:45 am to Reeaholic
Sold my house a year ago without a realtor, it wasnt hard and house sold within a month. Put that extra 10k in my pocket.
How do you know if you didn't leave money on the table.
How do you know if you didn't leave money on the table.
Posted on 7/7/22 at 9:45 am to greygoose
How much more did your buddy sell their house for?
I’m guessing for more than the 33k difference
I’m guessing for more than the 33k difference
Posted on 7/7/22 at 9:48 am to Arkapigdiesel
Why don't you get your real estate license. Then you could move out of the trailer park and live like a rich cock-sucker.
This post was edited on 7/7/22 at 9:49 am
Posted on 7/7/22 at 9:52 am to Cracker
Posted on 7/7/22 at 9:54 am to mikelbr
quote:
Hey retard. Title/Closing companies get the smallest cut and absorb the most liability in every transaction. Real Estate Agents are absolutely useless. Everyone agrees on that. They make closings a pain in the arse more often than any other party.
Sales guys play golf and wine and dine clients, then a team of everyone else does the work for the client while sales guys make bank. Title companies don’t sell. They don’t close deals. You want to make sales money, be that dude. Otherwise you simply sound like a jelly bitch because you can’t close.
Posted on 7/7/22 at 10:03 am to Texas Ram
quote:
You paid top price
no not really, it was a major fixer upper, like 40% remodel level.
i got it after the bank dropped the price 4 times in 2 yrs and no one wanted to take on that much work and banks were not giving loans for what they considered a complete tear down, so no one was able to get a loan to buy it.
the final price drop was 40% less then they wanted. a fire sale if you wish, just to get it off their books.
the sale price was right at double the property value alone not counting the house, and the location was in a great area with good neighbors so i bought it.
haggling further to get any lower price at that point would be talking about $1k to argue over and i didnt want to risk missing on it
Posted on 7/7/22 at 10:10 am to ipodking
quote:
You know how this board likes to bitch about the people in this country?
Well, realtors deal with those people so you don’t have to
Posted on 7/7/22 at 10:39 am to SlidellCajun
quote:
Then consider the working parts to get to closing. Inspections, negotiating the work to be done, appraisals, closing documents, and other items that come up in the course of the process. Agents take care of things that people generally don’t know how to do.
Dude, it's not rocket science, it's easy as shite. It just takes some time.
quote:
I would not recommend someone try to sell or buy without the help of an agent.
Can you please explain to me how anyone working on a commission can be working in the interest of the buyer?
Posted on 7/7/22 at 10:42 am to tigersfan1989
Just tradition...one of many professions doing the same.
Posted on 7/7/22 at 10:50 am to WildTchoupitoulas
quote:
undefinedCan you please explain to me how anyone working on a commission can be working in the interest of the buyer?
The commission percentage is so low that it becomes irrelevant to the buyers agent.
Consider;
List price 1mm. And buyer agent comm rate is 2%.
I want to buy it for $900,000 so I make offer. It’s accepted. The $100,000 x comm rate of 2% is only $2,000 so it’s not enough for the buyer agent to want to keep the price high.
Also, if the agent represent the buyer only and not also the seller then They are required by law to represent the buyer.
If they’re working both sides of the deal, it’s more difficult but ethical agents can finesse it. Some are challenged ethically so they can be trouble.
I always hire my own agent to represent me when buying and only rarely use the listing agent to buy.
Posted on 7/7/22 at 10:53 am to keakar
We didn't use a buying realtor for ours either, due to kinda the same thing. We still got $20k knocked off the asking price, which was in itself $200k less than the house was originally listed for 2-3 years ago. The seller's realtor knocked off some of her commission to get the deal done as well. I think she was ready to be done with that listing.
On paper, it was worth a lot just for the land alone (neighborhood is in pretty high demand). In reality, the house was just in too good condition to tear down while also still needing a lot of work. Add in that it is very uniquely set up in a way that most modern families wouldn't like, we were able to get it fine without a realtor.
On paper, it was worth a lot just for the land alone (neighborhood is in pretty high demand). In reality, the house was just in too good condition to tear down while also still needing a lot of work. Add in that it is very uniquely set up in a way that most modern families wouldn't like, we were able to get it fine without a realtor.
This post was edited on 7/7/22 at 10:56 am
Posted on 7/7/22 at 10:55 am to tigersfan1989
First list in Zillow (as Agents welcome), then move to an agent if it doesn't sell.
Posted on 7/7/22 at 11:00 am to llfshoals
quote:I get it. As a realtor, you are convinced the large commission is warranted, regardless of little to no effort. No negotiations. Just a set price and the buyer accepted. Simple contract, same as with a $200K house, only difference to the realtor was the big arse check she collected.
How much more did your buddy sell their house for?
I’m guessing for more than the 33k difference
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