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Old 11-06-2009, 01:46 PM
 
Location: Columbia, SC
6,945 posts, read 10,504,650 times
Reputation: 3496
Quote:
Originally Posted by stevep View Post
each individual and situation is unique, but people are going to research it when there's $24k of real money on the line.
77% of them don't research it. That's how many people only meet with 1 agent. First warm body that happens along, or Uncle Bob the Barber but also has a RE license he works part time, etc.
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Old 11-06-2009, 05:04 PM
Status: "Keep on the Sunny Side!" (set 18 days ago)
 
Location: Cary, NC
19,169 posts, read 29,291,111 times
Reputation: 15969
Quote:
Originally Posted by SVTLightning View Post
If this were a TRUE statement, then the commisions would not be a flat 3% or 6%, they would be based on "knowledge and time". They are not, the fees are the same regardless if you have an all star agent or one who is half assed and got lucky on a sale. (typed slow for the sb readers lol)
Please prove that commissions and fees are "the same."

For starters:
Have the commissions been "the same" in my last three closings?

What about the three before that?
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Old 11-06-2009, 05:41 PM
Status: "Keep on the Sunny Side!" (set 18 days ago)
 
Location: Cary, NC
19,169 posts, read 29,291,111 times
Reputation: 15969
Quote:
Originally Posted by Brandon Hoffman View Post
OleCapt is right of course.

Steve, nobody is forced to pay 6%. The seller can select FSBO, low service, or full service. When the seller is paying a Realtor they are paying for the Realtor's knowledge and time. The concept is the same with doctors, lawyers, financial advisors, etc. You are paying for knowledge and time. Knowledge and time comes with a value because some are better at it than others.
Quote:
Originally Posted by MikeJaquish View Post
Many sellers sell and pay no commission.
It happens every day.
So, they have myriad choices as how to proceed.

Wow, you should have been here for the demi-troll-fest over who pays the commission.
It was truly a hoot.

Brandon,
I have learned that the concept that commissions are negotiable is irrelevant to posters who wish the government would control OTHER PEOPLES' income.
They demand access to your level of service at a price that they set unilaterally.
Despite the fact that commissions average about 5.1% nationally, 6% is typically quoted as the standard commission by folks with an agenda beyond conversation.
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Old 11-07-2009, 08:23 AM
 
Location: Barrington
18,117 posts, read 13,023,458 times
Reputation: 5862
Quote:
Originally Posted by MikeJaquish View Post

Many sellers sell and pay no commission.It happens every day.
So, they have myriad choices as how to proceed.
I primarily work one zip code, a 100 square mile area. I cannot recall the last time I saw someone successfully sell and close a FSBO.

I am thinking FSBO may be more successful at some price points than not.
Can you imagine a seller planting a FSBO sign in front of their 10 acre estate and be willing to open their home to a drive-bye?
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Old 11-07-2009, 10:47 AM
 
Location: Anderson, SC
180 posts, read 223,552 times
Reputation: 179
This thread is no different than any other FSBO Vs Agent thread I have read anywhere else. To sum it all up:
  • You can sell FSBO
  • You can hire a flat rate or discount company
  • You can hire a full service company
  • All 3 methods can work or fail
  • Some agents are great
  • Some agents are terrible
  • Some FSBO know what they are doing, some do not
  • Some FSBO properties are overpriced, some are underpriced
  • Commission is negotiated
  • You get what you pay for, in real estate or anything else
  • I quote this, you quote that
  • I link to this, you link to that
  • Flat rate or discount companies come and go
  • Some people do not know what agents actually do or are misinformed
  • Some people think agents make too much
  • 10% of the agents make 90% of the transactions
  • The entry level requirements for agents is too low
  • Nothing I say will change your mind
  • Nothing you say will change my mind
  • The internet is changing the world and many businesses
  • Change is needed in the real estate industry
The only difference between this thread and others is that agent that sent the "boycott" letter should be reported to the real estate commission.

Last edited by Mark Brian; 11-07-2009 at 10:49 AM.. Reason: grammar
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Old 11-07-2009, 11:11 AM
 
Location: Martinsville, NJ
5,854 posts, read 6,510,792 times
Reputation: 3446
Quote:
Originally Posted by stevep View Post
It doesn't make a difference if it's coming from the capital gain, they're still spending $24k after taxes which means their net worth just went down by $24k. They need to earn an additional $34k in salary on top of their normal salary in order to cover this reduction in net worth.
If you want to count the payment of the commission as a reduction of their income, then you have to count the sale of the house as a source of income. The year they sold that $400,000 house, they didn't have an income off $24,000, they had an income of $424,000.
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Old 11-07-2009, 05:57 PM
 
377 posts, read 1,029,343 times
Reputation: 185
Quote:
Originally Posted by Bill Keegan View Post
If you want to count the payment of the commission as a reduction of their income, then you have to count the sale of the house as a source of income. The year they sold that $400,000 house, they didn't have an income off $24,000, they had an income of $424,000.
Sellers that are looking to sell the house fsbo, would not have this additional $24k expense if they're successful. If they sell with a realtor, they have $24k more of expenses, meaning either their net worth is decreased by $24k or they need to generate $24k more of income to offset it.
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Old 11-07-2009, 06:04 PM
 
377 posts, read 1,029,343 times
Reputation: 185
Quote:
Originally Posted by MikeJaquish View Post
Brandon,
I have learned that the concept that commissions are negotiable is irrelevant to posters who wish the government would control OTHER PEOPLES' income.
They demand access to your level of service at a price that they set unilaterally.
Despite the fact that commissions average about 5.1% nationally, 6% is typically quoted as the standard commission by folks with an agenda beyond conversation.
This link isn't about commissions, but just to reply to your statement, everywhere that I've lived, if you call a full service re agent, they quote 6% as their commission. If you ask for a discount, they all have the same reply.... we can reduce the buyer agent's commission, but then nobody will look at your home and we can't reduce our side of the commission.
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Old 11-07-2009, 06:09 PM
 
Location: Martinsville, NJ
5,854 posts, read 6,510,792 times
Reputation: 3446
Quote:
Originally Posted by stevep View Post
Sellers that are looking to sell the house fsbo, would not have this additional $24k expense if they're successful. If they sell with a realtor, they have $24k more of expenses, meaning either their net worth is decreased by $24k or they need to generate $24k more of income to offset it.
This is a rather silly argument. You seem to want to pretend that all unrepresented sellers can have exactly the same success as they would have had by hiring a Realtor. Which argument, of course, is a complete fallacy.
Paying someone to do ANYTHING for you decreases your net worth, right? Paying a cab driver, instead of walking to my destination, decreases my net worth. Paying Old Navy for a pair of jeans, instead of buying some denim and making them myself, decreases my net worth. Paying a dentist, instead of just doing a good job flossing, decreases my net worth. These are all services for which you must pay. And unlike most of them, the argument can be made, and has, that by hiring a Realtor, you end up putting more money in your pocket than if you sell the house yourself, in effect INCREASING your net worth.
That being beside the point, the commission is a voluntary fee. You are paying to get something done. You don't need to pay that. You can negotiate a lower amount. You can negotiate a different fee structure. You can do it yoruself. All sorts of options. Enjoy the one that's right for you.
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Old 11-07-2009, 06:37 PM
Status: "Keep on the Sunny Side!" (set 18 days ago)
 
Location: Cary, NC
19,169 posts, read 29,291,111 times
Reputation: 15969
Quote:
Originally Posted by stevep View Post
This link isn't about commissions, but just to reply to your statement, everywhere that I've lived, if you call a full service re agent, they quote 6% as their commission. If you ask for a discount, they all have the same reply.... we can reduce the buyer agent's commission, but then nobody will look at your home and we can't reduce our side of the commission.
Less than anecdotal. No supporting data.

Commissions around the country average 5.1%.
Some folks advertise "full service" at very low fees.

Of Course, the consumer has to define "full service."
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