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It seems like every other topic on this board is someone asking how they can pay us less! I'm just venting my frustrations, so excuse me, but maybe some of you can help me with this.
Why is it that people think we should give back part of our commission, or lower it or rebate it or pay for things for them with it???
In what other line of work would somone say, "Congratulations, you did a great job, now... I don't feel like I should pay you."
It seems like every other topic on this board is someone asking how they can pay us less! I'm just venting my frustrations, so excuse me, but maybe some of you can help me with this.
Why is it that people think we should give back part of our commission, or lower it or rebate it or pay for things for them with it???
In what other line of work would somone say, "Congratulations, you did a great job, now... I don't feel like I should pay you."
What is up with that??
Hmm...for me it's because the only times I've used you guys is at the last minute to come in and represent me after I've already done all the work to find the house, gotten approved for a loan, and know exactly what I'm ready to offer. Since I've done a good bulk of the work involved, I don't feel that's worth as much as if you'd taken the time to show me several houses.
I think commissions are incredibly high. Realtors in the UK work for 1.75-2.5%. Where does this gigantic 6% come from? How much more work do American realtors really do to deserve around 3x more commission?
I think commissions are incredibly high. Realtors in the UK work for 1.75-2.5%. Where does this gigantic 6% come from? How much more work do American realtors really do to deserve around 3x more commission?
Well, correct me if I'm wrong but that's split a lot of ways. It doesn't all go to the person that you deal with -- they've got to share it with other people.
Hmm...for me it's because the only times I've used you guys is at the last minute to come in and represent me after I've already done all the work to find the house, gotten approved for a loan, and know exactly what I'm ready to offer. Since I've done a good bulk of the work involved, I don't feel that's worth as much as if you'd taken the time to show me several houses.
The easy part is opening a few doors. Negotiating and protecting your interests in the contract through to closing is the hard part that requires training and expertise. I know a lot of people that have gotten into bad deals because their Realtor negotiated poorly or didn't know the caveats of the contract that can cause problems. For those of us that know what we're doing, we're worth every penny.
For the remark about the UK, maybe they're selling themselves short. The "traditional" 6% here is split between a buying and selling agent, so it's actually only 3%. It's hard to compare apples to apples though when you're dealing with two different countries. There are different costs of living, different caveats in transactions, different laws, etc.
Doctors in Canada and other places with socialized medicine don't get paid as much as Doctors in the US. Does that mean they're so much better here?
I think commissions are incredibly high. Realtors in the UK work for 1.75-2.5%. Where does this gigantic 6% come from? How much more work do American realtors really do to deserve around 3x more commission?
First, this is the United States - not the UK. You are trying to compare incomes between two countries - and, IMO, that is impossible.
And you ask "where did the gigantic 6% come from" - first, where do you get the 6% number from? I'm a broker - I have a 1000 agents = all 100% commissioned agents - I see (and approve) each and every listing they take. A) Very few are at "6%". B) Most sales are "cross sales" - another brokerage / agent involved. C) Where cross sales are involved, the gross commission is usually split - so the listing agent does not get the entire commission. D) Many of our listings provide that if the listing agent sells the property themselves, the total commission will be less - often 1.5 to 2% - LESS than your UK example
If I look at split commission offices, the listing agent splits the commission with their broker - the broker covers the overhead (Office, utilities, Advertising, staff etc). In 100% offices, the agents pays for their own marketing costs and often (not always) a share of the office expense as well
I could go on but, the above are some examples of what I believe you fail to realize about our business.
One more thing to consider today: If one of my agents takes a listing, they are obligated to use their best efforts to market that property - and that can (and does) get expensive. Yet, if the listing expires without selling, the agent is out of pocket with those costs - that is a risk they take.
So perhaps you might want to learn something about our business before jumping up and down to merely criticize it.
Location: On another site. This one is lame :) Trying to give it a second chance though.
105 posts, read 71,296 times
Reputation: 44
Quote:
Originally Posted by MikiJayne
It seems like every other topic on this board is someone asking how they can pay us less! I'm just venting my frustrations, so excuse me, but maybe some of you can help me with this.
Why is it that people think we should give back part of our commission, or lower it or rebate it or pay for things for them with it???
In what other line of work would somone say, "Congratulations, you did a great job, now... I don't feel like I should pay you."
What is up with that??
You're not worth 6% unless you're selling a double-wide.
The highest I've paid is 4.5%, and I'd never do that again. I actually had one agent sit with me who said "I don't work for less than 6%". I said "Well you're not working at 6% either, at least not here. Thanks for coming and have a nice day".
3%, that's it. No more, no less. If the realtor wants more than that on a $200k plus house, tell them to hit the road.
Be realistic here. Housing prices have doubled in the last 6-8 years. That means if your percentage stayed the same, your salary would double.
Nice try, but no cigar. 2% was more than fair two or three years ago. Houses were selling in days, not weeks or months. 3% was about right for the second half of last year. MAYBE 3.5 to 4% going forward as the market crumbles, but definitely not 6.
If you don't want people to ask for rebates, then charge less.
It might not be that people want a Realtors service for nothing. It is the American way to chop chop chop. Uh like negotiate. Sorry dirty word.
What people see is that when our parents bought their home in 1950 for $15,000, the commission paid was $900.00. Todays average sales price of $400,000 the commission paid is a whopping $24,000 or more.
While everything has gone up in life, the commission has not. But Realtors earn more due to homes selling for more and more and more. (untill now but that is another argument) Imagine selling a California home on the ocean for $12 million and having to pay a commission of nearly 3 quarters of a million dolllars? If I was in that high dollar life style I would find it real hard to couph that kind of money up for a commission.
Everyone wants and complains for more money no matter what we do for a living.
The easy part is opening a few doors. Negotiating and protecting your interests in the contract through to closing is the hard part that requires training and expertise. I know a lot of people that have gotten into bad deals because their Realtor negotiated poorly or didn't know the caveats of the contract that can cause problems. For those of us that know what we're doing, we're worth every penny.
I agree, you guys are great for a buyer that doesn't know what they're doing. But, I don't depend on the realtor to translate the contract for me either -- that goes to my real estate attorney for interpretation, for exactly the reasons you state -- realtor not knowing the caveats that can cause problems.
Oh, and note that in my case I'm talking strictly about someone representing me when I buy, not when I sell. For selling, you guys are worth every penny. And for the record -- I've never negotiated a commission down. This is just how I feel, not how I've done.
Last edited by RoaminRed; 01-03-2008 at 11:23 AM..
Reason: typo
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