Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jack, a government bureaucrat would want to OVER pay! and find a way to issue a "bond" or fee(tax)to cover the additional cost...all in the "family" of course..
Jack, a government bureaucrat would want to OVER pay! and find a way to issue a "bond" or fee(tax)to cover the additional cost...all in the "family" of course..
Unless they were in charge of writing double-speak regulations.
You guys are missing the point. It's not about avoiding Realtors, it's about not paying them.
The only way to not pay them is to not use them. You may think their commissions are "exorbitant"; I'm not a realtor so I have no idea if they really are or not. I know closing costs are total BS and a complete ripoff, but I have no idea how to get out of those.
Don't want to pay a realtor? Do it yourself. Otherwise, it's only fair to pay a realtor if they work for you. They don't work for free. Nor should they.
I'm really confused so clarification is necessary. We bought with cash from someone selling his parents home and closed at the title company for almost nothing compared to having a realtor involved. Use a realtor in what way I wonder? I'm thinking that if there is an answer that it isn't something that would be legal.
So far in this forum I've read suggestions on how to get rebates, get listing exceptions, get undeserved referrals, switch agents, cancel listings and several other ways to avoid or reduce commission. Have we missed any good tactics for getting out of having to pay Realtors the exorbitant commissions that they seem to think they deserve? No sense having multiple threads on the number one topic (not paying commission) when we can have one comprehensive thread devoted to commission avoidance tactics. Set the people free!
So you want someone to work for free so you can have more money?
You guys are missing the point. It's not about avoiding Realtors, it's about not paying them.
Wow. Why would you do that?
How would you feel if your boss said "you know 1insider I really don't believe you're doing a good enough job and I can do it myself so while I understand you worked your ass off last week but I need you to take a 50% pay cut for mast week or better yet I'm gonna try and figure out a way to not pay you.
Or if self employed you get a call from a customer and say you go there do the work and the customer says you know 1insider I really could of done the job myself so I really need a 50% discount off your quote because I really don't feel like paying you.
If you feel they are just not worth the money they will get anytime you wish step up to the plate and sink a FSBO sign on your lawn. Then you can thumb your nose at all those bastard lazy realtors.
All you realtors can huff and puff as much as you want, but there's absolutely no justifcation for that 3%!! There has to be a better compensation structure - flat fee or hourly. Just the way the professionals that you are quoting (attorneys and plumbers) charge.
All you realtors can huff and puff as much as you want, but there's absolutely no justifcation for that 3%!! There has to be a better compensation structure - flat fee or hourly. Just the way the professionals that you are quoting (attorneys and plumbers) charge.
I think I should just cut and paste from previous answers...sigh...
The reason that flat and hourly rates don't dominate is because consumers don't want it. Seriously, they don't. I am a fee-for-service broker and have been for 10 years. 90% of what I do is commissions because when presented with a choice, consumers choose to pay me a commission.
When consumers say they want flat rates or hourly rates, what they really mean is they want you to charge that but only if they close escrow. The problem is that doesn't work in business. Commissions are all or nothing for brokerages, like gambling. High risk equals high reward. If you are going to spend all of your time working and paying out your own money to market a property, with the possibility that you won't get paid, you are gambling with your business and income. As such, you expect to get rewarded for that. A seller loses nothing financially (generally speaking) if the agent doesn't close. They move on to agent number two. An agent loses hours and actual real money.
So...onto flat rates. Only bad business people cut their rate but stay with a high risk. Redfin knows this which is why they only go into markets with $500,000 homes. It lowers the risk for the business so they can offer rebates. Flat rate companies crashed and burned during the bust because the ability to sell a home decreased, costs to sell and market increased, and they were charging flat rates with no guaranteed payment. Bad business model and the owners need a math refresher.
The only way to do flat rates is to charge 50% upfront and 50% at close (or some variation). This minimizes the risk for the brokerage, which you would expect as they drop the rate. Low rates have to be low risk. It is that simple. Plumbers get paid regardless. Same with attorneys. Attorneys charge a retainer. Plumbers can put a lien on your house for non-payment.
Not surprisingly consumers aren't willing to shell out $2,000 upfront in order to save $10,000 on the back end. I have been living this business experiment for 10 years now.
This is true for hourly rates as well. Those get billed every 30 days.
Consumers are paying for the privilege of not paying. This is the main reason fees are so high and make no mistake, consumers choose this model. As such, it dominates.
There are fee for service brokerages in every state. Consumers just have to take the time to find them. Most choose not to because at the end of the day, people are risk averse and will avoid it when given a choice.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm thinking that if there is an answer that it isn't something that would be legal.
