[tadtam]

I was so happy that I didn't have to hire a lawyer at a cost of 3K to 5K that the $500 transaction fee was well accepted.
In MA if you are obtaining a loan you must pay for the bank's lawyer and if you want one to represent you, you have to hire another one. RIP OFF!
I was happy when I was informed I did not have to have a lawyer in NV..

[Everdeen]

Originally Posted by macgeek

What is $450 on a $150,000 deal.. didly squat!
if it helps the deal move along, just pay it!

Jonathan

Because it is excessive.

Let's say a small RE office has a broker and 9 real estate agents. They all sell one house per month averaging $100,000 each. The commission is $6000. One-fourth of that, $1500, goes to the buyer's agent's broker to "keep the lights on." That's $15,000 per month to "keep the lights on." How many "lights" does this broker need? The truth is that the broker and the corporate office are well compensated for their level of education and experience. I have yet to meet a real estate agent/broker who makes anywhere as little as I do. I'm sure they are out there, but I have yet to meet them.

Originally Posted by ScoopLV

This transaction fee pays for the office staff who actually write the deal and handle closing. (The agent can't be bothered, usually. Easier to dish that off to someone else.)

During the boom, this fee was absorbed by the buyer's agent. But now that a "deal" usually means a $3-5K commission that must be split between the broker and agent, this fee is often passed on to the buyer.

The agent should have spelled this out in the agency contract. (Did you sign an agency contract?). Your agents know that you'll eventually cave and pay the money just to "move the deal along." But this is just another example of why I don't use real estate agents.

The process is largely automated and the real estate agent clicked a few buttons printed out the contract (offer). There is very little office staff involved.

I have owned several houses prior to the boom and was never charged more than the 6% commission, which I think is outrageous to begin with.

I did not sign anything to do with the fee prior to the offer. I did sign an information sheet up front, but I am pretty sure that it is not a binding contract with the agent.

I have sold a home without one, but not purchased without one. How do you do that?

Originally Posted by WestieJeff

Pretty much is standard nowadays. $400 is within range. My feelings are the same as yours, you're already getting thousands of dollars in commission and this feels like nickle and diming.

My biggest problem is NOBODY tells you this upfront so it isn't until you've found a home and are emotionally invested in both the home and the agent, then they spring it on you. If they told you up front, this fee would disappear quickly since it would be price shopped. Redfin partner agents in Vegas give 15% of their commission back to the buyer, which is more than the $400 transaction fee, so I know it's not "required" to keep the lights on.

I agree. Thank you.

Originally Posted by tadtam

I was so happy that I didn't have to hire a lawyer at a cost of 3K to 5K that the $500 transaction fee was well accepted.
In MA if you are obtaining a loan you must pay for the bank's lawyer and if you want one to represent you, you have to hire another one. RIP OFF!
I was happy when I was informed I did not have to have a lawyer in NV..

Well, that is a rip off and you should be angry about it. But it doesn't justify the "transaction fee" (Read: Expensive lifestyle for corporate goons).

Sorry, I don't mean to sound hostile to you guys...I am just really annoyed.

[ScoopLV]

Originally Posted by Everdeen

I have sold a home without one, but not purchased without one. How do you do that?

1) Hire a title insurance company. They do all the heavy lifting in a Nevada real estate transaction, anyway. A good title officer is key. Have a working relationship with a title officer FIRST, then go house shopping.

2) Go to the Nevada Real Estate Division on Sahara for the forms you need. (Don't download from some random real estate website because the forms change. I've seen Purchase Agreements from as early as 2002 being offered for download.) Pick up the forms you need -- Residental Purchase Agreement, disclosure forms, etc.

3) Fill out the Purchase Agreement and give it to the Listing Agent -- AFTER you have worked out a deal in which the Listing Agent lowers their commission from 6% to 3% and convinces the seller to accept the lower offer.

"I'll buy the house for X, you lower your commission by 3%, everybody's happy."

See, the broker cannot give a commission to someone who doesn't hold a real estate license. But the seller can lower the price. Same result, different way to get there.

4) Get the exact amount needed for the big bank check from your title officer. Bring big bank check to closing. Sign about 30 documents. Deed gets recorded. Done.

[Everdeen]

Originally Posted by ScoopLV

1) Hire a title insurance company. They do all the heavy lifting in a Nevada real estate transaction, anyway. A good title officer is key. Have a working relationship with a title officer FIRST, then go house shopping.

2) Go to the Nevada Real Estate Division on Sahara for the forms you need. (Don't download from some random real estate website because the forms change. I've seen Purchase Agreements from as early as 2002 being offered for download.) Pick up the forms you need -- Residental Purchase Agreement, disclosure forms, etc.

3) Fill out the Purchase Agreement and give it to the Listing Agent -- AFTER you have worked out a deal in which the Listing Agent lowers their commission from 6% to 3% and convinces the seller to accept the lower offer.

"I'll buy the house for X, you lower your commission by 3%, everybody's happy."

See, the broker cannot give a commission to someone who doesn't hold a real estate license. But the seller can lower the price. Same result, different way to get there.

4) Get the exact amount needed for the big bank check from your title officer. Bring big bank check to closing. Sign about 30 documents. Deed gets recorded. Done.

Do you just contact each listing agent to view each house?

[ScoopLV]

Originally Posted by Everdeen

Do you just contact each listing agent to view each house?

Yes, that's right. But I'm only looking in just a few subdivisions. There are a handful of places where the rental numbers work, and I'm within walking distance of my house.

I can see where it would be a pain for a buyer who doesn't really know what he or she wants to go without an agent. But I can look at property via my bicycle. If the exterior looks good (and the roof looks good), I'll look in the windows. (Assuming the property looks empty, naturally.) If I don't see any obvious problems, I'll call the agent and set something up.

I'll have a punchlist and a toolkit in hand during the walkthrough, and can make an offer that evening -- I already know what the comps are in the few neighborhoods I'm interested in. I just don't like to put in an offer on the spot.

[macgeek]

There is a old saying, "It's not the money, its the principle" -- No.. It's the money..
I hate when you get nickle and dimed as well, but there are so many back deals happening in real estate, and at the end of the day, if you got the house you wanted for the money you wanted to pay, isn't it worth the extra $$$ to make the prossess as painless as possible?

Why does divorce cost so much: BECAUSE IT'S WORTH IT!

Jonathan

[Everdeen]

Originally Posted by macgeek

There is a old saying, "It's not the money, its the principle" -- No.. It's the money..

$20 bucks it's the principle. $400 dollars, it's both

I hate when you get nickle and dimed as well, but there are so many back deals happening in real estate, and at the end of the day, if you got the house you wanted for the money you wanted to pay, isn't it worth the extra $$$ to make the prossess as painless as possible?

Why does divorce cost so much: BECAUSE IT'S WORTH IT!

Jonathan

True dat.

[bledsoe3]

Originally Posted by Everdeen

Because it is excessive.

Let's say a small RE office has a broker and 9 real estate agents. They all sell one house per month averaging $100,000 each. The commission is $6000. One-fourth of that, $1500, goes to the buyer's agent's broker to "keep the lights on." That's $15,000 per month to "keep the lights on." How many "lights" does this broker need?

It's not just lights. It's the brokers salary, secretary, benefits, rent, utilities, insurance, all the advertising for their listings and probably more that I don't know about.

$6,250 Owner $75k
$2080 Secretary $12 per hour
$500 Utilities
$1000 Health care for just the owner and secretary
$1000 Building rent
$500 Advertising $50 per listing

That's about $11,800 being conservative.

I'm not advocating for the fee, just thinking out loud why a fee could be needed.

[ScoopLV]

Originally Posted by bledsoe3

It's not just lights. It's the brokers salary, secretary, benefits, rent, utilities, insurance, all the advertising for their listings and probably more that I don't know about.

$6,250 Owner $75k
$2080 Secretary $12 per hour
$500 Utilities
$1000 Health care for just the owner and secretary
$1000 Building rent
$500 Advertising $50 per listing

That's about $11,800 being conservative.

I'm not advocating for the fee, just thinking out loud why a fee could be needed.

But that fee doesn't cover ANY of the above. It's for the transaction clerks who actually write up and send the forms. It used to be paid out of the buyers agent's commission. But since the buyer's agent isn't making much these days, they're handing it off to the buyer.

There is a positive effect to this, though. Maybe agents will quit telling buyers "Agency doesn't cost the buyer a THING!," even though it clearly does. And maybe buyers will stop and think about what they're getting for their 3%. Free car rides and nostalgia, mostly. All the important stuff is done by the broker's transaction clerks and the title insurance officer, anyway.

[Prosze]

A good agent works hard for their commision-taking/making calls at all hours (When do they get a break?), negotiating, tons of paperwork they have to fill out, going back & forth with banks, getting yelled at by agents that don't want to work plus the cost of gas driving your butt to & from houses. They have lots of thing they pay out of their pocket for that matter. Also a lot of transactions take forever to complete & 3% is not much to cover expenses especially when you have someone buying/selling on the low end. If you don't want an agent to get paid for their work, do it yourself.