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If you don't mind sharing, what kind of hourly rates do you charge? Perhaps a range.
Because of issues with price-fixing and such, I'm not willing to say it "out loud" on a public forum, but if you really want to know I will dm it to you.
I can't make a living in real estate on $50 an hour. I know it sounds really high to most people but the business costs associated with this industry are insanely high. I do hourly rates and I could never charge that little and be profitable. You might get an inexperienced agent to charge that little though. Lots of agents struggling, so you just have to decide if you want a good agent or just a mediocre agent.
You will need to find a fee-for-service, real estate consultant type agent though. Some brokerages have minimum fees that agents have to pay so they wouldn't be able to take you on as a client. The link 2B gave you to ACRE is probably your best bet.
So you're saying you'd turn away a client looking for a condo in the 100K price range?
So you're saying you'd turn away a client looking for a condo in the 100K price range?
No. I just sold a $60,000 house to an investor. It also wasn't 60 hours of work. Someone buying a $100k home in my area isn't going to cost me 60 hours of my time. That is investor territory here, and they are savvy and fast.
Cost of living is a factor. $50 probably goes a lot farther in some states than it does here.
Oregon doesn't allow rebating so it's a mute point here, but yes, if you came to me and asked me to help you on $50 an hour, I would turn you down as a client. I work with a limited number of buyers (and sellers for that matter) at one time and it doesn't make business sense for me to give up one of my buyer spots to a client where I'm earning less than I could. Not in this market.
I work with clients in all income ranges so that's not the point. Lower priced home buyers are generally less time consuming. There is a lot less inventory so we might only see 10 homes, where a $400,000 home buyer might have 40 to see.
What percentage of your buyers and sellers actually complete a transaction?
In the area I'm looking at, it looks like about half the houses put on the market sell with the original agent. With foreclosures in the mix (about 10-15% of what's on the market), it must work out to a 1 in 3 shot of a non distressed seller actually closing. Not sure how those numbers run on the buy side.
I laid out the parameters in my first post. One week of house viewing, plus offers/inspections/closing. This should be about 60hrs of work. At $3,000, that's $50/hr.
You can make a living off that, right?
Agents are independent contractors with business overhead. You are looking to tap years of experience for workman's wages.
At $50/hour you are shopping for a knucklehead, not a skilled agent.
Your parameters are vague. Which inspections are included? How many houses and offers? How much negotiations?
Are you planning multiple low ball offers to see what sticks, or willing to be a buyer?
Without clear parameters, it is not flat fee, and not an arrangement any smart agent would make.
If that seems obstructionist, I suggest you run your parameters past an attorney for review and recommendation whether they are clear enough to create a sound agency relationship.
What percentage of your buyers and sellers actually complete a transaction?
In the area I'm looking at, it looks like about half the houses put on the market sell with the original agent. Not sure how those numbers run on the buy side.
Not sure what you are asking me. Me, personally or my market?
40% of homes listed in my city sold last year It would take way too much time to figure out how many changed agents though.
As for me personally, I'd say 95% of the buyers I take on as clients end up closing a transaction with me. The ones that haven't, had a life change situation happen in the middle of house hunting so we needed to stop. I'm still in touch with them. I value my time, so I'm picky about my clients. I know that probably sounds weird but I have to protect my time and my business which means working with what I would consider serious buyers. I don't care about their price range but I care about the seriousness of their attitude, if that makes sense.
Because of issues with price-fixing and such, I'm not willing to say it "out loud" on a public forum, but if you really want to know I will dm it to you.
In our area it would be extremely difficult to get an agent of any quality to work for the parameters you've given. There are some fly by nighters that would love to take your money.
In many areas a $100k home can require a lot more work finding and completing the process then a $300k house. There is a lot more quality and selection the higher you go in your price. It can be extremely difficult in some areas to find a decent lower priced home.
Also, ask the agent how you'll get your money. That could be sticky and illegal depending on how it's done. Check with your lender to see if they have a problem with it also.
I'm confused at why anyone would go to such lengths to work a deal for such an inexpensive home purchase.
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