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Old 07-14-2006, 01:00 AM
 
2,560 posts, read 5,948,095 times
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Quote:
Originally Posted by TornadoAlley
I just got that. So your "red" wife? It's late.
I can honestly say 16 happy years. Your right it's late and I have to work tomorrow. Have a nice evening.
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Old 07-14-2006, 11:40 AM
 
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Quote:
Originally Posted by TornadoAlley
4% was the going rate for over a year. I can tell you 6% is back. What they are doing is telling you they will do "x" amount for 4% and "x" amount for 6% of course more for the 6%. With the sellers wanting to sell, they are going with 6% just to sell.
I interviewed 4 realtors before selecting one. All but one said 5% was the normal commission rate. The one that didnít was willing to take the listing for 4.5%, 2.5% for the other agent and 2% for her.

You canít make buyers materialize in this market no matter how much money you throw out to realtors. Right now in some markets there are twice as many homes for sale as last year. There are just too many choices and the buyers feel they donít have to be in a hurry to make an offer.

Most buyers (82% is the number quoted buy several realtors) are using the internet to do their research. Buyers donít care what the commission is they are interested in the house only.

Right now I would think no realtor would be willing to risk losing a buyer by only steering them to houses that will bring them .5% more commission.
If you have a house that sells for $500k the commission would be, 15k @ 3% and 12.5k for 2.5% thatís a difference of $2500. Thatís not a lot of money to risk losing a client over.
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Old 07-14-2006, 11:46 AM
 
1,126 posts, read 3,519,008 times
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Quote:
Originally Posted by RedNC
I interviewed 4 realtors before selecting one. All but one said 5% was the normal commission rate. The one that didn’t was willing to take the listing for 4.5%, 2.5% for the other agent and 2% for her.

You can’t make buyers materialize in this market no matter how much money you throw out to realtors. Right now in some markets there are twice as many homes for sale as last year. There are just too many choices and the buyers feel they don’t have to be in a hurry to make an offer.

Most buyers (82% is the number quoted buy several realtors) are using the internet to do their research. Buyers don’t care what the commission is they are interested in the house only.

Right now I would think no realtor would be willing to risk losing a buyer by only steering them to houses that will bring them .5% more commission.
If you have a house that sells for $500k the commission would be, 15k @ 3% and 12.5k for 2.5% that’s a difference of $2500. That’s not a lot of money to risk losing a client over.
Your points are valid. But I should add. The Realtor "in most cases" doesn't get all that. Remember, by law the Broker(s) get paid, the he pays the Realtor. Each Broker gets 1/2 of the selling %. So, it depends on the arrangement. The Realtor gets 50% or even 75% of that of what their Broker got. Some do get the whole 3% (one side of the Broker) but then the Broker makes them pay a desk fee.
Buyers don't care? I disagree. I do. Not to argue. But, I know the seller will only go so low in price because he is paying 6%. I would want to know his "net" proceeds. This is his bottom line. If seller only has to pay 4%, then of course he will go lower in price than if he/she has to pay 6%. Our first house we bought. Seller would only go "x" amount. I told our agent (buyers agent) to lower his commission so the seller would accept offer. He did and offer was DENIED. Then we asked the sellers agent to lower her commission. Offer then was resent. Offer was ACCEPTED. Seller saw more $$$ on his end. This is a true story. It shows buyers do care what % was worked out to sell the house.
As for your last comment. Here is the reverse side. Less commission gets your house shown less. I know you disagree. But I know first hand this is true. Most, not all, I repeat not all. Most, look at the commission and will stear the buyer away if it is to low. This is why last year when the 2% (1% each Broker) was coming out, it failed. Houses were not shown. If your paying 4% and getting no bites. Raise it to 6% and watch you get bites. If your thinking of lowering your price, do the math, might be better to raise the %. The numbers are there. It works. I also have never seen a agent give the other Broker more % than him. They like to say this and 99% of the sellers NEVER read what commission were paid and to whom and how much. Old trick. The selling Broker "blocks" the buyers Broker from seeing commissions paid out. Only the selling Broker and seller get to see. He never knows what the true % was. This is done in escrow.

Last edited by TornadoAlley; 07-14-2006 at 11:58 AM..
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Old 07-14-2006, 11:52 AM
 
1,035 posts, read 2,608,420 times
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Quote:
Originally Posted by RedNC
Right now I would think no realtor would be willing to risk losing a buyer by only steering them to houses that will bring them .5% more commission.
If you have a house that sells for $500k the commission would be, 15k @ 3% and 12.5k for 2.5% thatís a difference of $2500. Thatís not a lot of money to risk losing a client over.
Also, if they lower their commissions they can more listings and even with the lower commission more business and in the end MORE MONEY!
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Old 07-14-2006, 11:55 AM
 
1,035 posts, read 2,608,420 times
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Quote:
Originally Posted by TornadoAlley
Your points are valid. But I should add. The Realtor "in most cases" doesn't get all that. Remember, by law the Broker(s) get paid, the he pays the Realtor. Each Broker gets 1/2 of the selling %. So, it depends on the arrangement. The Realtor gets 50% or even 75% of that of what their Broker got. Some do get the whole 3% (one side of the Broker) but then the Broker makes them pay a desk fee.
.
Here in NY is depends...I will use 6% as a number the selling office gets 1/2 and the buying office gets 1/2 then that 1/2 is split between the owner and the realtor...if a realtor sells a lot for a broker, he might take less and put more in agents pocket, the same holds true where some offices rent the space and the office name - it varies sometimes by office....ALso, that is why many offices while they tell you, you get access to MLS you do, but they always try to sell their own listings first and then can get neg with comm since their office gets all the $$$...in a market like today, if you want to stay in bus and be compet you have to be willing to bend...

More and more real estate offices here are merging..
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Old 07-14-2006, 12:03 PM
 
1,126 posts, read 3,519,008 times
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Quote:
Originally Posted by Weis02
Also, if they lower their commissions they can more listings and even with the lower commission more business and in the end MORE MONEY!
The other Realtors refuse to show the house. The Brokers usually doesn't know this. Money is money to him/her. The Realtor do care. Its the same as some Realtors who will not sell land. Money is money. They don't get it!

I am not disagreeing here. Only showing the facts. Lowering the commission is more business and more work for less pay. Go into work tomorrow and say you want to work for $5 less an hr so your boss can increase his business and have more money to do so. Let me know how that works out for you. See my point? This is also the point on a Realtor side. Same work and you want to pay less? The average Realtor doesn't get that many houses per month. I said average, not all.

Last edited by TornadoAlley; 07-14-2006 at 12:13 PM..
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Old 07-14-2006, 12:07 PM
 
1,035 posts, read 2,608,420 times
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Quote:
Originally Posted by TornadoAlley
The other Realtors refuse to show the house. The Brokers usually doesn't know this. Money is money to him/her. The Realtor do care. Its the same as some Realtors who will not sell land. Money is money. They don't get it!

I am not disagreeing here. Only showing the facts. Lowering the commission is more business and more work for less pay. Go into work tomorrow and say you want to work for $5 less an hr so your boss can increase his business. Let me know how that works out for you. See my point? This is also the point on a Realtor side. Same work and you want to pay less?
Yes I do see the your point and I am not disagreeing with either, but sometimes the market conditions dictate a lot...putting $$ aside, businesses today expect you to more harder for less money - meaning the job of two or three people becomes the job of one person with the same pay.
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Old 07-14-2006, 12:08 PM
 
1,126 posts, read 3,519,008 times
Reputation: 412
Quote:
Originally Posted by Weis02
Here in NY is depends...I will use 6% as a number the selling office gets 1/2 and the buying office gets 1/2 then that 1/2 is split between the owner and the realtor...if a realtor sells a lot for a broker, he might take less and put more in agents pocket, the same holds true where some offices rent the space and the office name - it varies sometimes by office....ALso, that is why many offices while they tell you, you get access to MLS you do, but they always try to sell their own listings first and then can get neg with comm since their office gets all the $$$...in a market like today, if you want to stay in bus and be compet you have to be willing to bend...

More and more real estate offices here are merging..
They are merging here too to stay alive. Sales are slow. It is common to see the listing office take 4% and give the selling office 2%. Just to stay alive. Then they block it in escrow so the buyers Brokers never see's it and think it was a 4% and it was split. When it was actually a 6% commission. Right now the Brokers are wanting all the listings. Not many buyers out there. To get the listing means they control how much % they get. In training w/C21 they teaches you..."get the listing" well bring the buyer in. Only focus on the listings.

Last edited by TornadoAlley; 07-14-2006 at 12:11 PM..
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Old 07-14-2006, 12:12 PM
 
1,126 posts, read 3,519,008 times
Reputation: 412
Quote:
Originally Posted by Weis02
Yes I do see the your point and I am not disagreeing with either, but sometimes the market conditions dictate a lot...putting $$ aside, businesses today expect you to more harder for less money - meaning the job of two or three people becomes the job of one person with the same pay.
I do agree. I wonder if that is more with the blue color than the white color? I would guess blue color?
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Old 07-14-2006, 12:20 PM
 
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I think both, if you are paying a VP top salary, most companies want more for their $$ - You do probably see it more in blue but look at Intel, they are laying off 1000 employees most management citing these jobs were hired more over the years then others
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