Real Estate Commissions in the USA? (expensive, broker, contracts, offer)
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So EXACTLY what does an agent do that justifies a $19,000 paycheck on the scenario above? If more people actually understood it and we saw some sort of a balance sheet breakdown they might not be so 'pillaged'.
I am not involved in that transaction, and the duties are fungible from deal to deal.
No one with any experience would ask, "What EXACTLY..." because there is no "EXACTLY."
I am not involved in that transaction, and the duties are fungible from deal to deal.
No one with any experience would ask, "What EXACTLY..." because there is no "EXACTLY."
Yes, EXACTLY Which leaves sellers continually wondering "What EXACTLY am I paying this person to do?" Really though, I'm assuming that the commission wouldn't change because the duties change, so I am asking what are the usual duties that would justify a 5 or 6% paycheck?
I never claimed to have any experience. I am just in the process of selling my house and feel like I am paying a LOT of money for the privilege.
Yes, EXACTLY Which leaves sellers continually wondering "What EXACTLY am I paying this person to do?" Really though, I'm assuming that the commission wouldn't change because the duties change, so I am asking what are the usual duties that would justify a 5 or 6% paycheck?
I never claimed to have any experience. I am just in the process of selling my house and feel like I am paying a LOT of money for the privilege.
Again, there is no "EXACTLY."
You say as much when you migrate your query from "EXACTLY" to "usual."
I could make you a list of "usual," and it would not be the same afterwards as it would be before listing.
Of course, you got a written marketing plan from your listing agent, listing the marketing tasks.
And, your listing agreement lists additional tasks you have agreed on.
And, of course, you know that the buyer pays the commission anyway. It is baked into the price.
Again, there is no "EXACTLY."
You say as much when you migrate your query from "EXACTLY" to "usual."
And, of course, you know that the buyer pays the commission anyway. It is baked into the price.
I only migrated my query because you wouldn't answer the original query. See, when I come to work I have tasks that I must perform in order to get my paycheck at the end of the week. If anyone asked me what they are, I could list them. They might vary a bit from day to day but not that much.
And no, the buyer doesn't pay the commission. If I list my house at 'x' then have to lower it to 'y' or take a lower offer then I am losing - not the buyer. Yes, if I get a full price offer then maybe I 'baked' it in but many times we both know that doesn't happen. And yes, I have a listing agreement but it doesn't have a specifically detailed list of the agent's duties like I would think should be there. But we interviewed several agents and checked out several listing contracts - they were all the same.
You seem like a good guy Mike and I have no beef with you - but I can see that I am not going to get a clear answer and that's ok. That is the model we are stuck with to date - the real estate agent does 'a lot of things I am unaware of' and for that I need to pony up. All I am saying is that I don't agree with the model.
I only migrated my query because you wouldn't answer the original query. See, when I come to work I have tasks that I must perform in order to get my paycheck at the end of the week. If anyone asked me what they are, I could list them. They might vary a bit from day to day but not that much.
And no, the buyer doesn't pay the commission. If I list my house at 'x' then have to lower it to 'y' or take a lower offer then I am losing - not the buyer. Yes, if I get a full price offer then maybe I 'baked' it in but many times we both know that doesn't happen. And yes, I have a listing agreement but it doesn't have a specifically detailed list of the agent's duties like I would think should be there. But we interviewed several agents and checked out several listing contracts - they were all the same.
You seem like a good guy Mike and I have no beef with you - but I can see that I am not going to get a clear answer and that's ok. That is the model we are stuck with to date - the real estate agent does 'a lot of things I am unaware of' and for that I need to pony up. All I am saying is that I don't agree with the model.
I don't propose services without seeing the property. I suspect I am not licensed in your area, so proposing services without an interview and a view of the property in the local market would be incompetent.
As you suspect, I am not incompetent.
Agency is more like playing third base. We are expected to stop what comes by, particularly if it falls in the realm of a fiduciary duty.
You signed an agreement without negotiating duties and tasks? Not the agent's fault.
"And no, the buyer doesn't pay the commission. "
You have been misled and your experience level exposed again.
Many people want you to believe that, for self-serving reasons.
Buyers agents want to be able to lie to buyers and tell them that "Buyers Agency is FREE, doesn't cost you a penny." Then, they take a cut out of the buyer's money.
Listing agents want to claim the expense for their clients.
The whole "Who Pays" dynamic is one of the great failings in the industry, as is any other lie.
Buyer pays. If you plan to list at $400,000, with a 4.8% commission, and the buyer materializes, so no agents are involved...
Would you cut your price to $382,000 due to lack of commission? Would you then net more or less than paying commission?
Would the buyer pay more with commission back in the deal?
The only reason the buyer's agent's commission shows on your side of the transaction is so the buyer can borrow the funds to pay, rather than paying out of pocket.
If we had a facility for buyers to finance their commission, settlement forms would look different.
See, when I come to work I have tasks that I must perform in order to get my paycheck at the end of the week. If anyone asked me what they are, I could list them. They might vary a bit from day to day but not that much.
...
And yes, I have a listing agreement but it doesn't have a specifically detailed list of the agent's duties like I would think should be there. But we interviewed several agents and checked out several listing contracts - they were all the same.
... That is the model we are stuck with to date - the real estate agent does 'a lot of things I am unaware of' and for that I need to pony up. All I am saying is that I don't agree with the model.
What type of work do you do, do you get paid on an hourly basis, and what is that? Do you get benefits, PTO, sick days? And is your performance reviewed monthly, quarterly, or annually?
Did all the listing agents show you they'd do the exact same things at the exact same price?
And did you not have the option of selling it by owner, or using a firm that charged an upfront fee for a certain well-described but "limited" amount of services?
And while we're at it, what's your state and hopefully city - so someone might speak to the customs, practices, and rules of your locale?
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Which leaves sellers continually wondering "What EXACTLY am I paying this person to do?" Really though, I'm assuming that the commission wouldn't change because the duties change, so I am asking what are the usual duties that would justify a 5 or 6% paycheck?
