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Old 10-29-2007, 07:11 AM
 
Location: Northern, VA
980 posts, read 2,063,787 times
Reputation: 521

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Brandon,

Your breakdown of the commission structure is awesome...and that's in an "ideal" transaction. It's even worse for more difficult transactions. My specialty areas are short sales and foreclosures. With a short sale, it's usually the listing agent who has to give up their commission. Every now and again, I'm able to convince the selling agent that THEY should be helping their client as much as I am. If I were in this business for just the money, I would do something that's a heck of a lot easier with a better payoff. The short sales I've done have taken 4 to 5 months to complete. The last one I closed, I walked away with a $1710 check....BEFORE TAXES. Divide that by 4 or 5 months. Am I really in this for the money? I don't want to see people lose their homes over something that is preventable....and like several others on the board, I'm here to change the perception about agents. I may not impact the industry, but I definitely have an effect on the clients I have the privilege of working with.

Enough preaching. The sad part about it is that some people are content to live blissfully in their ignorance. No matter how you spell out the commission structure, they will still think we're overpaid.
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Old 11-03-2007, 03:03 AM
 
Location: Las Vegas, NV
403 posts, read 794,210 times
Reputation: 209
Quote:
Originally Posted by shellytc View Post
Why do you have lead paint disclosure forms ready to go if your home is only seven years old? Nothing to disclose...
Excellent.
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Old 11-03-2007, 03:55 AM
 
Location: Las Vegas, NV
403 posts, read 794,210 times
Reputation: 209
Quote:
Originally Posted by tomocox View Post
I suggest that many sellers are disappointed because they didn't properly hire their listing agent. As with all professions, there are outstanding Realtors and there are Realtors who should be standing out somewhere else.

I have never seen anyone who gets value for their cost upset with paying for quality service.
I kind of have the feeling that the FSBO people on this thread wouldn't be happy if the ReMax ballon was parked above their house with 4-color glossies of their home flittering down to a mass of cheering buyers on their doorstep. The problem isn't that they've had bad agents - it's that they simply cannot comprehend what we do or how we do it or how many problems we manage.

We're all bad agents to them.

This has been a very funny thread to read, though. That lead disclosure for the 7 year-old home is still cracking me up (oh, and DesiBear's RE Course Outline and Emily ending up needing a lawyer - those were pretty funny, too).

To the FSBO people posting here: You've got every right to do it any way you want. I don't quite get the anger-at-an-entire-profession trip. But to each his own. God bless you and good luck!

Last edited by Eric Young; 11-03-2007 at 04:04 AM..
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Old 11-03-2007, 04:27 AM
 
Location: Las Vegas, NV
403 posts, read 794,210 times
Reputation: 209
Quote:
Originally Posted by emilybh View Post
I selected him because he was willing to take a lower commission...But I think he earned about $600 of his $6K plus commission.
By the way Emily, if I'm understanding you correctly, your house sold for $150,000 and you paid your brokerage 4% or $6000.

Your broker then paid the buyer's brokerage - probably 2.5% - $3750, leaving your brokerage with $2250. Of that amount, your brokerage paid your agent his cut of 60% - $1350.

Your agent had 30% taken out in taxes, leaving him with $945.

Oh, yeah, you're right - he was way overpaid for the work he did! He definitely should have painted your house and vacuumed and done your laundry and make your bed when potential buyers were going to look at it.

G'night everybody!!
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Old 11-03-2007, 12:14 PM
 
Location: NW Atlanta
1,372 posts, read 3,701,229 times
Reputation: 411
Quote:
Originally Posted by donsabi View Post
I had my house listed with a realtor and the results were terrible. Now I am going FSBO. I actually got a letter from another real estate agency that stated it would be impossible to sell my house because all RE agents would boycott it.
I certainly don't understand this because there is no cost to any realtors. I am offering 3% payable at closing. They are not listing it in the MLS, Realtor.com, or anywhere else. Realtors have "0" dollars invested into the sale of my home. 3% for a quick showing and that sounds pretty good to me. So what's the problem?
Don
she actually sent you a letter???????
how rude...just a scare tactic

I would take the letter to the BBB and see how she like those apples

I show all homes I don't know what my client is going to like
as long as the FSBO isn't over priced I say go for it
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Old 11-05-2009, 10:53 AM
 
7 posts, read 5,799 times
Reputation: 10
Quote:
Originally Posted by julieb View Post
I am a Realtor. That letter sounds rude. The problem with FSBO is the Realtor ends up doing all the work. It is great you are offering 3% buyers agent comm. I am sure your house will get shown.

The problem is most FSBO do not know current laws and what is acceptable and not, what forms need to be signed and when. ie. Lead Disclosure, Property Disclosure Forms. We then negotiate the contract for all parties, handle all repair requests/disasters. A realtor ends up doing twice the work.

However, a good Realtor will show any house to their clients that they want to see, no matter the commission.

Hope that helps.
So, a realtor does all the work...hmmm...$200k selling price times 3% = $6,000. IF you put in a total of 120 hours (which I sincerely doubt anyone would for one sale) that still equates to $50/hour. I'm guessing there are plenty of people who would love that kind of paycheck right about now...
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Old 11-05-2009, 11:21 AM
 
Location: Tempe, Arizona
4,511 posts, read 7,422,653 times
Reputation: 2106
Quote:
Originally Posted by benhogan View Post
So, a realtor does all the work...hmmm...$200k selling price times 3% = $6,000. IF you put in a total of 120 hours (which I sincerely doubt anyone would for one sale) that still equates to $50/hour. I'm guessing there are plenty of people who would love that kind of paycheck right about now...
Well, deduct all the overhead expenses first. And what if it was the only paycheck they may see for months? Now that agent has to scramble (or have systems in place) to get new clients and close more sales to have a shot at more "paychecks". The median Realtor pay is about $31K/yr, or about $15/hour.
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Old 11-05-2009, 03:06 PM
 
Location: DFW - Coppell / Las Colinas
18,505 posts, read 17,216,848 times
Reputation: 17517
Quote:
Originally Posted by benhogan View Post
So, a Realtor does all the work...hmmm...$200k selling price times 3% = $6,000. IF you put in a total of 120 hours (which I sincerely doubt anyone would for one sale) that still equates to $50/hour. I'm guessing there are plenty of people who would love that kind of paycheck right about now...
Some old threads never die.

That is the attitude so many people have with real estate that it's get rich quick and we don't earn our money. We run businesses that have a lot of hidden expenses and overhead most people don't see.

We also spend a lot of hours behind the scenes outsiders don't understand.

This is one of the reasons many people get in the business, don't understand how to operate a small business and fail. It's one of the reasons I do understand my broker taking their share, those buildings, employees, internet are all very expensive.
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Old 11-05-2009, 06:51 PM
 
Location: Columbia, SC
7,018 posts, read 11,067,299 times
Reputation: 3540
Quote:
Originally Posted by benhogan View Post
So, a realtor does all the work...hmmm...$200k selling price times 3% = $6,000. IF you put in a total of 120 hours (which I sincerely doubt anyone would for one sale) that still equates to $50/hour. I'm guessing there are plenty of people who would love that kind of paycheck right about now...
2 year old thread...

Franchise fee/company splits probably leaves the agent with about 4k. Deduct $500 for overhead (probably shooting low here but anyway), leaves $3500. Take out 30% for taxes and the agent actually made ~1200. All that for $200,000+ worth of risk as well as being expected to be available 24/7.

Doesn't seem ALL that great anymore, does it? That was simply an uninformed post. After all, in RE everyone is an expert.
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Old 11-05-2009, 06:57 PM
Status: "Apple Pie!" (set 16 days ago)
 
Location: Cary, NC
19,602 posts, read 31,172,187 times
Reputation: 16643
Just another poster who can't differentiate between revenue and a paycheck.

We are SO trained by our culture to be dull, unless we have the ambition to learn how economics work on a personal level.
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