- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- 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: Why are real estate agents commission based?
Posted on 7/7/22 at 11:00 am to SlidellCajun
Posted on 7/7/22 at 11:00 am to SlidellCajun
quote:
The commission percentage is so low that it becomes irrelevant to the buyers agent.
The buyer wants the lowest price, the person working on commission wants the highest price. It is a direct conflict of interest - however inconsequential you may want to make it seem.
The other one that kills me in the cash back at the table. I saved $10k on a deal by telling the agent, "No, no cash back, just lower the sale price." She was pissed because she wasn't going to get the commission on the money that would've gotten handed back at the table.
It's a doomed profession. The reason I know this is because my sister got her realtor's license. You know what she was before that?
Yep.
A travel agent.
1
Posted on 7/7/22 at 11:07 am to WildTchoupitoulas
quote:Even better, being a dual agent and representing the buyer AND seller!
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 11:17 am to greygoose
quote:
Even better, being a dual agent and representing the buyer AND seller!
Yeah, they pulled that on me one time. That's when I asked how in the world her representing me wasn't a direct conflict of interest, she just pointed to the form she wanted me to sign and told me, "It says so right here..."
She was definitely sorry she ever took that listing. I made her work for it.
Posted on 7/7/22 at 11:20 am to BabyTac
quote:
If buyers and sellers wised up, they’d both be obsolete overnight. Unfortunately the American population is too lazy and unmotivated.
Why wouldn't you use one to buy?
Posted on 7/7/22 at 11:21 am to WildTchoupitoulas
quote:
Yeah, they pulled that on me one time. That's when I asked how in the world her representing me wasn't a direct conflict of interest, she just pointed to the form she wanted me to sign and told me, "It says so right here..."
She was definitely sorry she ever took that listing. I made her work for it.
Yeah, they can't explain that, so they don't. I almost hired an agent once, that was recommended by a friend. Then I found out the agent was the agency's secretary, and could only show after work and after she picked up her kids. LOL! I don't take recommendations from that friend on anything, anymore.
Posted on 7/7/22 at 11:24 am to Areddishfish
quote:Better price from the seller when they know a commission won't come out of the sale.
Why wouldn't you use one to buy?
Posted on 7/7/22 at 11:32 am to LouisianaLady
quote:
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.
ya, thats how i felt too. the current lot value alone today is more then i paid for everything back in 2010.
im still working on it, just taking my time, doing most of the work myself, and its mostly finished except for insulation and sheetrock.
it should appraise at around 4 times the initial purchase cost, plus everything i spent on the reno costs.
taking this long to do it was a double edged sword though, it gave me more time to rethink and to completely redo the floorplan 4 different times already but its now the perfect layout where had i done it faster i would have had some regrets about a few things that didnt let the floorplan flow very well.
when the land alone is worth the purchase price, if you really want it, its not worth haggling over it and risk letting someone come in and snipe it out from under you because you tried to save an extra $1k
This post was edited on 7/7/22 at 11:56 am
Posted on 7/7/22 at 11:47 am to tigersfan1989
quote:
Why are real estate agents commission based?
lots of great discussion here, except for the agents trying to defend their stupid fees
but i will just add this, every sale is a different situation, in some cases there needs to be a lot more put into a transaction then a simple sale and in those cases it can be, however repugnant, an advantage and possibly even worth it to pay for those title and realtor fees so there are no hidden surprises and avoid being burned badly by not having them ensure you only pay what you think you are paying and not be hit by things you werent prepared for like hidden liens and tax liabilities, undisclosed damages, and such.
if im spending large on a home and going through banks to get a loan then im less likely to care about the costs of realtors and such if it ensures i can sleep well at night.
that said, if im buying cash without a loan then they are useless in such situations since those are always as-is condition sales so using them is just throwing money away
Posted on 7/7/22 at 11:52 am to TJG210
quote:And they certainly aren't always easy. Those that are against agents have no idea about certain complex matters that can arise.
I’d love to take a look at some of these “easy” transactions yall keep bragging on, I’m sure you left more money on the table than you saved.
Kudos to them for having easy transactions they could handle themselves but it's very naive to think it'll always be like that.
Posted on 7/7/22 at 11:57 am to greygoose
quote:
Even better, being a dual agent and representing the buyer AND seller!
Happened to me on my first home purchase in Highland Creek right there between Gardere and Staring.
I learned a lot from that experience. There's that.
Posted on 7/7/22 at 12:01 pm to keakar
quote:
in those cases it can be, however repugnant, an advantage and possibly even worth it to pay for those title and realtor fees so there are no hidden surprises and avoid being burned badly by not having them ensure you only pay what you think you are paying and not be hit by things you werent prepared for like hidden liens and tax liabilities, undisclosed damages, and such.
What does a realtor have to do with things like that?
Posted on 7/7/22 at 12:02 pm to WildTchoupitoulas
quote:
undefined
The buyer wants the lowest price, the person working on commission wants the highest price. It is a direct conflict of interest - however inconsequential you may want to make it seem
Well 2% of something is better than 2% of nothing and that’s what the buyer agent is going to get it they don’t properly represent the buyer.
If a buyer’s agent is suspected of not properly representing the buyer, and the buyer is smart enough to see it, there’ll be hell to pay! Reputations go a long way.
Quick story- I had an agent representing me in a deal as buyer and I found out that she was in collusion with you he selling agent. She didn’t work to get me the best deal including hiding inspection items and purchase price plus a few other things. I had evidence.
I sued her and we settled to her dismay. She will NEVER make that mistake again. I put her through serious hell and she quit the business. I learned my lesson too though. I make my agents sign a form on top of what they’re required to sign that essentially says they represent me and only me and it gets specific about inspections, purchase price, disclosures etc. My agent is close to me now and would never do anything against me but she signs it anyway.
Posted on 7/7/22 at 12:02 pm to greygoose
quote:
I get it. As a realtor, you are convinced the large commission is warranted, regardless of little to no effort. No negotiations.
A - they brought the buyer
B - Negotiation? They put forward a price, which the seller accepted. That’s poor negotiations on the sellers part if they got a blind offer and didn’t try and up it
C - This goes overlooked, but sellers (or buyers) are free to negotiate commissions as well. I had almost the exact scenario you described and I did it for 4%, not 6% as I was handling the details for both parties. Difference being seller gave my buyer a price to “take it or leave it”
Posted on 7/7/22 at 12:08 pm to Mo Jeaux
quote:
What does a realtor have to do with things like that?
a realtor doesnt just open doors and walk you through houses
if they do their jobs, they ensure there are no hidden liens and tax liabilities, undisclosed damages, and such by using title search companies and other services.
Posted on 7/7/22 at 12:10 pm to keakar
quote:
if they do their jobs, they ensure there are no hidden liens and tax liabilities, undisclosed damages, and such by using title search companies and other services.
I don't look at those things as being within the purview of an agent's job. Personally, I wouldn't want your typical real estate agent searching for liens for me. I'll let my attorney handle those things.
Posted on 7/7/22 at 12:14 pm to greygoose
quote:I will be throwing a lot of my fellow realtors under the bus with this one.
Even better, being a dual agent and representing the buyer AND seller!
I absolutely despise dual agency. It is a clear conflict of interest, and every listing I do I tell my sellers I will not be bringing a buyer for sale. If I have a client who wants the house as a buyer, I turn it over to another agent for them to represent.
Posted on 7/7/22 at 12:18 pm to Mo Jeaux
quote:
I don't look at those things as being within the purview of an agent's job. Personally, I wouldn't want your typical real estate agent searching for liens for me. I'll let my attorney handle those things.
well they are like a general contractor, they dont do the work, they sub each part out to a trade to do.
so title searches, inspections, and real estate lawyers, are all hired by them so that you dont have to go try and hire them yourself and you just have to deal with the realty company
Posted on 7/7/22 at 12:21 pm to keakar
quote:
so title searches, inspections, and real estate lawyers, are all hired by them so that you dont have to go try and hire them yourself and you just have to deal with the realty company
Eh. If I'm a buyer, I just hire my own lawyer. They can take care of the rest of that stuff.
As a seller, a real estate agent may provide some value if you don't feel like facilitating the sales process. Other than that, I think they're a waste of money.
Posted on 7/7/22 at 12:26 pm to Mo Jeaux
quote:
Eh. If I'm a buyer, I just hire my own lawyer. They can take care of the rest of that stuff.
well not everyone has layers they trust to do all that that can just call
and a real estate agent are mostly idiots and they arent who i would trust, the real estate agency they work for, that i am suing if they dont handle things correctly, is who im talking about that does the work
Posted on 7/7/22 at 12:31 pm to Mo Jeaux
quote:I am sure that lawyer charges the same price to write 4 contracts, because you didn’t win any of the first 3, writes up addendums for those pesky issues that tend to crop up, etc etc etc
Eh. If I'm a buyer, I just hire my own lawyer. They can take care of the rest of that stuff.
People think it’s easy, sometimes it is most of the time it isn’t
Page 6 of 7
Popular
Back to top
Follow TigerDroppings for LSU Football News