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Old 10-04-2009, 09:48 PM
 
16 posts, read 121,714 times
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Just curious what the average person has to say about this topic. I know what many realtors have to say. A neighbor realtor delights in telling others in the neighborhood that we are 'low-cost' so people shouldn't use us. Hmmm.... I find that to be confusing. Don't all people want full service and want to pay lower commissions to realtors?
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Old 10-05-2009, 07:00 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,729,143 times
Reputation: 17831
I've heard stories about people actually going the opposite way, that is, paying a realtor more than a normal commission. The theory is, for the extra say 1% the seller pays the realtor, the seller gets a lot more service out of the realtor, marketing the home.

Maybe it's worth it in a down market. Ask someone trying to sell a $500K home if it would be worth it so pay an extra $5K to increase the probability that 1) Their home gets sold in one month instead of nine months and 2) They could get a higher sales price.

Pay more to sell a home faster - MSN Money
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Old 11-19-2009, 10:02 AM
 
1 posts, read 2,607 times
Reputation: 10
going the high road on service for full fee is tough. real tough. People want to know your opinion on price and will decide on THAT. As if the agents value was in the price they quoted to sell the home. Yeah, they want less costs and there is some validity to that but what blows my mind is the absolute error in thought that a realtor is a "key" or pass to the MLS. There is a company that PAYS the BUYER 75% of the commission because the buyer found the home. REDICULOUS. What about client privilages and service. Man, people are truly missing out on the services and privilages of knowing a good agent. High commissions play into that and really its not for the agent but the brokerage. What difference should it make how much I get paid to take care of a client. If I am sucessful at all (and most agents are simply NOT) then I will be very well reinmbursed even at 5% or lower assuming my broker is not scaming me for the money I earn
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Old 11-19-2009, 10:23 AM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,238,974 times
Reputation: 6920
Actually a bigger issue than commission is how they get you to price your house. The real sharpies will recommend a lower one so the property moves quickly and they get paid right away. An additional $10K selling price means a lot more to you than to them at 6%. Gotta watch those guys.
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Old 11-19-2009, 09:07 PM
 
694 posts, read 1,232,868 times
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Jenell, the forum indicates that this thread has been reactivated.
Is it an effective marketing tool, has it provided any leads for you?
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Old 11-19-2009, 09:52 PM
 
11,715 posts, read 40,438,984 times
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If you've only got $30k in the property and a full commission is going to cost you $50k, you bet there's incentive to find a discount broker.
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Old 11-20-2009, 02:51 AM
 
694 posts, read 1,232,868 times
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Well, discount brokerage usually means newer, less experienced agents and less marketing, advertising and overall service.
You get what you pay for, especially in this tough market.

If selling makes the difference between going into foreclosure, losing your home equity and credit standing or not,
you might want to reconsider the use of discount brokerage.
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Old 11-20-2009, 08:07 AM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,238,974 times
Reputation: 6920
Well considering that the most important marketing vehicle for homes is the sign in the front yard (yes, that's a fact) I'm not sure the higher commission realtor is that advantageous. Most of these guys make their money on generating listings (the real reason they hold open houses) and then flipping the properties as quickly as they can by getting the seller to go for a low price.
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Old 11-20-2009, 08:19 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,729,143 times
Reputation: 17831
Quote:
Originally Posted by CAVA1990 View Post
Well considering that the most important marketing vehicle for homes is the sign in the front yard (yes, that's a fact)
What do you mean by important? Please be specific, using numbers or metrics. Also, integrate online real estate tools (databases, websites, ect such as realtor.com or redfin.com) into your response.

Buying or selling a home? Forget the traditional realtor : Updates : The Rocky Mountain News

This article below is about a year and half old.

Real Estate Marketing – 75 Percent of People Buy Their Home Online - Realtors - are You Ready?
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Old 11-20-2009, 08:43 AM
 
694 posts, read 1,232,868 times
Reputation: 365
Originally Posted by CAVA1990
"Well considering that the most important marketing vehicle for homes is the sign in the front yard (yes, that's a fact) I'm not sure the higher commission realtor is that advantageous"....

So it happens that I have a statistical pie right here and it indicates:

Buyer sources used in searching for a home:

Real estate agent 41%
Yard sign 17%
Internet 16%
Friend, relative, neighbor 7%
Home builder 7%
Newspaper 5%
Knew seller 5%
Book/Home Magazine 2%

So, while the yard sign is indeed sufficiently important at 17%, the agent still counts for 41%.
Are you willing to make a bet on discount brokerage service for 41% of a successful home sale?

Guys, this might be the wrong time to promote low commission brokerage.
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