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you can't run a business very long without profit...
Of course, and people who work on salary and don't operate their own business can't understand that. They do not see the back end expenses; and unless they have been in the real estate business, they have no conception of how it operates, with the high operating expenses involved. They don't see the losses on lower priced homes. All they see is what they "perceive" to be a high commission, and erroneously think the Realtors are being overpaid, and think they are entitled to a part of it.
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quote from Redfin:-----Kelman said that “they make very little money” on the lower-end home buyer, but they are committed to continuing to serve that part of the market partly out of principle but also out of a desire to grow market share.
Silverfall has previously mentioned this in one of her posts, that she loses money on low priced homes, and some here can't seem to believe that. It's because they do not understand business economics. She is telling it like it is. I stopped working with most investors on the low end homes because it was costing me too much money. I do make a couple of exceptions.
I would agree that any commission is wasted money if you're getting the type of agent that hangs out on Trulia all day & competes to give away their paycheck.
hindukid[/b];25666266]You might be right. My personal opinion is that its a waste to time trying to beat this to death with you brokers. Your opinion is not going to change.
And why should we change? We're not going to roll over and allow people to get into our wallets.
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by hindukid:----Even if OP does convince the seller, the seller will probably be pissed at his agent but too timid to do anything about it. And even if he does confront broker, broker might just refuse.
It's more likely that a reasonable seller who respects contracts, and abhors those who would interfere with a third party contract will get pissed at the buyer.
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by Hindukid-----Personally I would just get a buyer's agent, pay them by the hour which will add up to 2 or 3 grand, and have the rest rebated to me. That is the easy solution. But I do see the logic of OP.
That's probably the best solution. There are agents who have that type of arrangement, and it is fine.
Of course, and people who work on salary and don't operate their own business can't understand that. They do not see the back end expenses; and unless they have been in the real estate business, they have no conception of how it operates, with the high operating expenses involved. They don't see the losses on lower priced homes. All they see is what they "perceive" to be a high commission, and erroneously think the Realtors are being overpaid, and think they are entitled to a part of it.
Silverfall has previously mentioned this in one of her posts, that she loses money on low priced homes, and some here can't seem to believe that. It's because they do not understand business economics. She is telling it like it is. I stopped working with most investors on the low end homes because it was costing me too much money. I do make a couple of exceptions.
I understand all of this. But first if you are losing money on low end homes and you are making it up on high end homes, they you are using high end homes to subsidize low end ones. Buyers and sellers of high end homes are not going to be happy about this. If I were selling a high end home, I would look for a listing broker who doesn't lose money on low end homes and expect me to make up for it. I would much prefer somebody who can charge a lower rate on high end homes because they are not wasting time and money on low end ones.
And I get that there is a lot of back end costs to a realtor. But what we don't get is that you are going to get your money either way. As Silverfell said, she is getting her money either way. On a 500K house with a 6% commission you are going to get $15,000. There is almost no possibility of you getting $30,000 so why are we talking about expenses and why realtors make no money. You are getting your $15,000 either way. You are of course going to retort that the contract says you get 6%. Well the contract is ridiculous and that is pretty much the point. If your contract stated that if closing is on friday the 13th then commission will be tripled, I am sure you would be whining that you are not getting properly paid if buyer wanted to close on friday the 13th and didn't want to deal with the extra commission. You deserve 3% for selling a house and that is what you are getting.
And you keep harping on and on about interfering with a third party contract. Talking about your contract is not interfering. OP can not make seller change the contract and really seller can't do anything without you anyways. Anyone in this country is perfectly entitled to call up your client and say that Captain Bill sucks and is a terrible agent who will never sell your house or CaptainBill is ripping you off by pocketing the buyer's agent commission when there is no buyer's agent. Those things are called freedom of speech and are not interfering with a contract.
It's more likely that a reasonable seller who respects contracts, and abhors those who would interfere with a third party contract will get pissed at the buyer.
And if you really want to get into respecting contracts a good lawyer is going to argue that the realtor is a sophisticated party to the transaction and is using a form agreement with an unreasonable term, and that term should be stricken. And that argument has a good chance of winning. If you would like your listing agreement to be enforceable, I suggest you do some reading regarding contracts where one side is a sophisticated party dealing in matters of kind and the other is not.
Most people are naive when it comes to real estate. It is a big amount of money and that is why they hire professionals. In comparison to the agent the seller is almost always very naive.
I never said anything about being a rockstar. Most sellers are interested in selling their house. If they get an offer that meets or exceeds their goals, they are going to take it. They are not interested in who gets what commission or what savings are allocated to who. If they are hoping to net 470K and they get an offer that nets 470K or more then they are going to take it.
YOU are naive, until it was explained to you a few posts back you didn't even understand commission structure. I'd normally rather the buyer go get an agent and me make 3% than have to do both sides for the same amount.
...And you keep harping on and on about interfering with a third party contract. Talking about your contract is not interfering. OP can not make seller change the contract and really seller can't do anything without you anyways. Anyone in this country is perfectly entitled to call up your client and say that Captain Bill sucks and is a terrible agent who will never sell your house or CaptainBill is ripping you off by pocketing the buyer's agent commission when there is no buyer's agent. Those things are called freedom of speech and are not interfering with a contract.
That's because and others keep saying you can interfere with a contract as you wish. You can talk about my contract all you want, but when you begin talking to my seller about it, you are interfering, and that is when I will talk to my attorney and let my seller know what to expect from this type buyer.
Freedom of speech does not allow one to insert something into a purchase contract that interferes with a third party contract.
Nor does it allow a buyer to have a discussion with a seller, in email, in person, or on the phone, that is to induce the seller to renegotiate a third party contract.
That's because and others keep saying you can interfere with a contract as you wish. You can talk about my contract all you want, but when you begin talking to my seller about it, you are interfering, and that is when I will talk to my attorney and let my seller know what to expect from this type buyer.
Freedom of speech does not allow one to insert something into a purchase contract that interferes with a third party contract.
Nor does it allow a buyer to have a discussion with a seller, in email, in person, or on the phone, that is to induce the seller to renegotiate a third party contract.
Please waste your money calling your attorney. I can 100% guarantee you that anybody calling, emailing or writing your seller and telling them that are paying too much is not tortious interference of a third party contract. You are allowed to express your opinion in this country.
Here is one now:
Captain Bill is an idiot and I would advise anybody thinking of hiring him not to. If you have already hired him you are overpaying.
Why don't you call your attorney and have him sue me for tortious interference of a third party contract.
And if you really want to get into respecting contracts a good lawyer is going to argue that the realtor is a sophisticated party to the transaction and is using a form agreement with an unreasonable term, and that term should be stricken. And that argument has a good chance of winning. If you would like your listing agreement to be enforceable, I suggest you do some reading regarding contracts where one side is a sophisticated party dealing in matters of kind and the other is not.
Please tell me which term in the listing agreement is one sided, and not enforceable.
YOU are naive, until it was explained to you a few posts back you didn't even understand commission structure. I'd normally rather the buyer go get an agent and me make 3% than have to do both sides for the same amount.
No I am not. Why don't you go back and reread. The poster was under the impression that the statement was referring to the seller not having to pay commission. The statement clearly stated that the listing broker would not have to pay commission and that is exactly what I was referring to.
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