Real estate commissions: This may be the end to them as we know them
mxk3 z5b_MI
2 months ago
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Lars
2 months agobb_capecod
2 months agoRelated Discussions
Real Estate Commissions Increasing
Comments (25)SD’s posted article was stating the fact the average commission paid has increased over the years when most expected with the advent of the internet it would decrease. I do find this fact curious, good for the RE industry, bad for consumers. The internet has radically changed RE, but not the RE commission as was expected. The internet has helped me tremendously, I’ve found many houses online, perused the listing, seen aerial views. I can also see the listing history, what the seller paid and view previous listing pictures to see improvements, all done from the comfort of my desk. Right now I’m considering buying in an area that I hadn’t thought of, but searching on redfin showed me additional areas with the house size and lot size I want. I need the agent to get me in the door once, negotiate the offer and bring it to closing. I never tour around in the car with an agent, hate that. I don’t begrudge any agent whatever commission he can earn as it takes a person hiring that agent for him to earn his commission I respect many realtors, I know many are professional, earning their high income. Right now I’m interviewing listing agents, the agents have not agreed to list for less than 5%, even though he will earn about $200,000 in commission. If I find this the going rate I’ll gladly pay it to the right agent as I want a quality agent. I’ve known I’d be listing so I’ve closely watched several of the local agents learning who I want to interview. I’m aware I can use redfin or another discount company, that doesn’t interest me as I want the service of a knowledgeable full service agent. For that matter I can list FSBO, again doing this is not in my best interest. Palimpsest – you appear to be emotionally connected to the profession – commissions can be discussed and defended without making negative comparisons to other professions. Also an experienced agent learns when to cut a client loose. If a buyer is wasting an agent’s time, or a seller has unrealistic expectations it’s time to move on to another client, knowing when to do this is a part of successful agent’s learned skills....See MoreDo real estate agents get commission for buying homes for themselves?
Comments (28)I sold my house to an agent and here’s what happened. We went into escrow and she asked for a reduction in the price by 2.5% instead of being paid a commission from my realtor. It was the same out of my pocket so I did it. The realtor then didn’t have to pay a broker fee because she is representing herself in the deal and she didn’t pay taxes on the commission because she didn’t earn one. I could have said no, then she would’ve taken her commission, paid her broker and paid her taxes. In retrospect, I should not have dropped the price the entire 2.5%, only an estimation of what she would net in the deal. So realtor buyers do have an advantage in any deal!!! All these realtors don’t want to admit it on this thread. “Why should her job matter” bc a realtor can manipulate the system. And this is exactly why NAR and Keller Williams lost a class action lawsuit recently - requiring that sellers pay a buyers agent. It inflates home prices and allows realtors to get personal advantages. Things will be changing. https://www.cbsnews.com/amp/news/nar-lawsuit-verdict-real-estate-agent-commissions/...See MoreAnybody know anything about New York real estate contracts/laws?
Comments (17)There have been about six showings since we signed the contract. Apparently, VRBO business is up all over the country, and our place is renting really well right now (in fact, it's booked every day in August). We told the agent right up front that we would never consent to showings while STR'ers are in the property, so they can only do it between renters right now. We can certainly ASK the potential lessee to agree to this, but I'm concerned that that ask, along with the possibility of us selling the place, may cause them to change their minds. The contract just specifies that we make the property available for showings....See MoreReal Estate Commission Fees
Comments (13)I'm a retired property appraiser. Here is my take on the issue. Of course you can try to sell it as a FSBO. You will probably be successful in selling the property for less than the market. Most people aren't successful as FSBO and eventually end up listing with a realtor. If you are ready to move, I'd find a good realtor. It may look as if your realtor is not doing much to earn their commission in a hot market, but this is the very time you need them. If you don't use a realtor, you will miss out on the invaluable exposure of the MLS. This is where the serious buyers and their agents will be doing business. You have lost 99% of the market with that one decision to FSBO. Even a Zillow listing can't provide you with this kind of exposure. The realtor is going to stage the home and have pictures taken. They will prepare the marketing listing. They are going to help you determine your selling strategy based on your local market conditions. Most of us have never lived or sold a property in an area where multiple offers rain from the sky. If there are bidding wars breaking out in your area, you will need guidance as to how to properly set up a viewing and bidding protocol. Then, bids will need to be accepted, reviewed and prioritized. That will take some expertise to determine the final best-qualified buyer and backup buyer. All the other services that the realtor provides as a standard sale will then resume. What about commission? For your information, it is an anti-trust violation for a broker to try to fix a commission. The lowest sales commission that I have ever personally gotten was 4.5% percent. 3% went to the agent/broker bringing the buyer. 1.5% went to the sales agent/broker. The agent was the #1 listing agent in Texas at the time. The house was in a cookie cutter subdivision with no outstanding issues or features. She warned us at the outset that we wouldn't see her again until the closing. She had a sales team that would handle appointments and after-showing reviews. She had a system, it worked and we were under contract within 10 days in a slow market. She knew the business and made her money by volume. We had been trying to sell FSBO for six months at that point. Did she do much? Not really. Was she worth it? Yes. She got the job done in a satisfactory manner. This top agent told us that she had an extraordinary contract with her broker due to her high volume that most realtors wouldn't get. 5% Is a good commission for most sellers. I would let every realtor I interviewed know that you have already negotiated a 5% commission, can they do better? I doubt it. Find a good, experienced, successful, full-time realtor, pay them 5% and be done with it....See Moremxk3 z5b_MI
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2 months agoElmer J Fudd
2 months agoLars
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