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Old 07-19-2009, 09:27 PM
 
Location: Southwest Austin
4,985 posts, read 9,802,571 times
Reputation: 3436

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Quote:
I am trying to find out how much typically people negotiate out of the 3% of realtor commission - if not 1.5%.
It depends. With me, it's zero. Always has been. But I'm really busy and can pick and choose who to work with. There are a lot of slow, hungry Realtors in Austin who will cut a deal with you though, but you know the old saying.

FYI - A Realtor who properly budgets her business will find that less the half the gross commission earned makes it to the bottom line. The average is 43% net, before income taxes and insurance. It's an expensive business to be in, mainly because it involves so much uncompensated effort.

So, when you ask a Realtor to give up 50% of her commission, when she only ends up with 43% at the end of the year, you're asking her to pay you 7% of her gross to help you buy a house! It doesn't make sense that an experience, quality agent who knows her numbers would even entertain such an absurd business proposition.

Good luck finding someone good to work for less than free.

Steve
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Old 07-20-2009, 12:22 AM
 
Location: Austin, TX
995 posts, read 1,563,556 times
Reputation: 781
Quote:
Originally Posted by austin-steve View Post
Good luck finding someone good to work for less than free.

Steve
Nobody is asking anyone to work for free.

The problem is the "6% commission" on the sale price, and how it fits with all of the other "fees", "points", "charges" and taxes - I had to hire a lawyer to explain to me how a house is actually sold nowdays.

Frankly, I'm not going to pay anyone $30,000 to sell my $500,000 house...

Last edited by Danbo1957; 07-20-2009 at 12:33 AM..
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Old 07-20-2009, 12:34 AM
 
Location: Southwest Austin
4,985 posts, read 9,802,571 times
Reputation: 3436
Quote:
Frankly, I'm not going to pay anyone $30,000 to sell my $500,000 house...
Well, you would be hiring and paying yourself that amount in the form of saved expenses if you're successful in finding a buyer.
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Old 07-20-2009, 04:01 PM
 
Location: Austin, Texas
544 posts, read 908,581 times
Reputation: 144
Quote:
Originally Posted by Danbo1957 View Post
Nobody is asking anyone to work for free.

The problem is the "6% commission" on the sale price, and how it fits with all of the other "fees", "points", "charges" and taxes - I had to hire a lawyer to explain to me how a house is actually sold nowdays.

Frankly, I'm not going to pay anyone $30,000 to sell my $500,000 house...
really understand where you're coming from -- wouldn't you need to factor into the net figure on the transaction the real time cost of money if your marketing efforts didn't sell the house? (the taxes prorations and title insurance figures will be the same) are you going to let just anyone come into your home that says they "might be interested in buying the place"? what's the cost of the time you'd have to take away from your "day job" to handle phone calls, prep work, showings, etc -- do you really know what the house will bring from the market? could be it's worth $600,000 --- who'd be losing money then?

could be a good realtor's worth the overhead even for astute homeowners
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Old 07-20-2009, 09:50 PM
 
Location: Austin, TX
995 posts, read 1,563,556 times
Reputation: 781
Hey, I used a realtor to help sell my house, it just took a loooong time to find the right realtor. A realtor has the skills and access to so much more than that of a home owner trying to sell on his own - obviously. But, commissions as a form of pay work well for multiple sales jobs (like a salesman peddling wares). I'd rather use an agreed upon fee that is more inline with the value of the work done, especially on any given one-time sale.

Caveat: the above comment supposes that everyone involved is playing by the same rules...
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Old 07-21-2009, 11:53 AM
 
65 posts, read 119,415 times
Reputation: 27
Quote:
Originally Posted by Danbo1957 View Post
Hey, I used a realtor to help sell my house, it just took a loooong time to find the right realtor. A realtor has the skills and access to so much more than that of a home owner trying to sell on his own - obviously. But, commissions as a form of pay work well for multiple sales jobs (like a salesman peddling wares). I'd rather use an agreed upon fee that is more inline with the value of the work done, especially on any given one-time sale.

Caveat: the above comment supposes that everyone involved is playing by the same rules...

On selling side it may make sense but I am talking about the buying side. 3% of the Home price seems a lot of money to me without clear accountability. It will be good if some one can detail the breakdown. I am not seeing it yet.
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Old 07-21-2009, 12:02 PM
 
479 posts, read 1,036,262 times
Reputation: 130
I don't understand why you want to negotiate something you're not paying.
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Old 07-21-2009, 02:30 PM
 
Location: Austin
2,522 posts, read 3,756,000 times
Reputation: 677
depends where the house is located and price....if house is not priced right, will not sell with OR without a realtor.....if priced to move immediately, no use for a realtor either...inbetween is where a realtor can come in handy, IF he/she is connected, has a network of buyers, and won't come just to plop a sign in front and toss a few things on the web....
Per location, if the house is located in an extremely desirable location and is a great house, no use for realtor either.....if house is in awful location(interstate, bad area, noisy area, near industry, right on major street, etc.) hard to sell with or without a realtor as well...Finally, realtors will not take any old listing..if they feel they can't sell it readily, most will walk away. They are not in the business of performing magic...just selling sellable properties...
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Old 07-21-2009, 02:34 PM
 
479 posts, read 1,036,262 times
Reputation: 130
except newer agents - they will usually take any listing so they can use it to advertise themselves and/or pick up buyers off the sign.
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Old 07-21-2009, 02:38 PM
 
Location: Austin
2,522 posts, read 3,756,000 times
Reputation: 677
Quote:
Originally Posted by CATXTransplant View Post
except newer agents - they will usually take any listing so they can use it to advertise themselves and/or pick up buyers off the sign.
True Catx....I call 'em "Mikey" agents....cause they'll list ANYTHING!

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