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It's the 80/20 rule -- 20% of your clients take up 80% of your time.
And surely Realtors can recognize that buyers and sellers who don't need their hand held do not want to subsidize those who do. This isn't the equivalent of "using the restroom at a McDonald's without purchasing anything" example used earlier in this thread -- that costs pennies. Overpaying for a house costs thousands, and sometimes tens of thousands.
Craigslist classified ads broke newspapers. Online airline booking broke travel agencies. The internet will eventually find a way to break the Realtor stranglehold. It's only a matter of time.
Wouldn't it be more satisfying to actually contribute in some meaningful way to the conversation as opposed to trying to play gotcha?
No it wouldn't and the only reason I clarify your statements is for the benefit of others here who don't understand the options open to them. And I'm not playing. I'm the one who started this thread and it has mostly been run over by agents telling us how hard their lives are and why they should make large commissions. You especially.
Why don't you address this question:
Quote:
well then, what is a listing agent for? what if they put the home in the MLS and buyer sees it, calls on it and views it, and wants to make an offer? Can't the deal close?
The concept that only a buyers agent can create interest in a property to bring a buyer to the table is false. The main reason buyers go to agents is that they have been conditioned to the premise that it doesn't cost them anything. Many don't want to pay buyers agents fees (either through purchase price or out of pocket), but the game is rigged on the agents behalf because of the current system. I am not saying there is no need for a buyers agent for many - just the process is skewed to benefit the cartel.
So the question is and has been: if you had to pay an agent out of pocket per hour, what would you pay them?
No it wouldn't and the only reason I clarify your statements is for the benefit of others here who don't understand the options open to them. And I'm not playing. I'm the one who started this thread and it has mostly been run over by agents telling us how hard their lives are and why they should make large commissions. You especially.
Why don't you address this question:
The concept that only a buyers agent can create interest in a property to bring a buyer to the table is false. The main reason buyers go to agents is that they have been conditioned to the premise that it doesn't cost them anything. Many don't want to pay buyers agents fees (either through purchase price or out of pocket), but the game is rigged on the agents behalf because of the current system. I am not saying there is no need for a buyers agent for many - just the process is skewed to benefit the cartel.
So the question is and has been: if you had to pay an agent out of pocket per hour, what would you pay them?
If you can show me at any point where I've put on some sob story about how hard my life is and why I deserve a huge fee, please point it out; I haven't engaged in that part of the conversation.
You've basically agreed with my point where I've stated that the system currently has buyers conditioned to not want to pay an agent a fee for services rendered; I'm not sure how you break buyers of that behavior. The system of compensation would be much easier if buyers paid their agents a fee and sellers paid their agents a fee, as opposed to one total commission paid out that's split amongst several parties.
And to answer your question: I'd pay what I felt the time I've saved by utilizing their services, as opposed to doing it on my own, is worth, but with the understanding that my value may not necessarily get me an agent that will provide me with the level of service I desire. If you want top service, you pay top dollar, and that's true for any customer service oriented business out there, whether it be a realtor or a plumber or an ad agency.
And surely Realtors can recognize that buyers and sellers who don't need their hand held do not want to subsidize those who do. This isn't the equivalent of "using the restroom at a McDonald's without purchasing anything" example used earlier in this thread -- that costs pennies. Overpaying for a house costs thousands, and sometimes tens of thousands.
Craigslist classified ads broke newspapers. Online airline booking broke travel agencies. The internet will eventually find a way to break the Realtor stranglehold. It's only a matter of time.
The potty at McDonalds is absolutely a perfect example. It is just a matter of scale, but still a perfect example.
Another is "free estimates" from contractors. Revenue-payers subsidize non-payers.
It is such an easy fundamental of business to understand, it is hard to believe that anyone would contemplating denying it.
It is why businesses report results on monthly, quarterly, and annual basis. They have to add it all up to come up with a snapshot. I cannot imagine Wall Street if the annual figures were broken down into every individual Walmart transaction, and every customer who wandered in was tracked in terms of individual cost to the stores.
It wouldn't work.
Payers subsidize non-payers.
And, those who understand that also know that in an industry where a broker charges the same commission rate to all clients, if there is such an operation, the higher cost homebuyer subsidizes the lower cost home buyer.
The $100,000 buyer range is an extremely difficult range in which to make a living. So, the $600,000 buyer who pays the same rate carries the $100,000 buyer's agency costs.
No one has to like it, but it is all factually true.
The system of compensation would be much easier if buyers paid their agents a fee and sellers paid their agents a fee, as opposed to one total commission paid out that's split amongst several parties.
.
It also means vets that use the VA loan would never have buyer agent representation because VA doesn't allow them to pay for it.
That would be something to figure out; I've never done a VA loan so wasn't aware of that nugget.
First time buyers also often don't have the cash to pay for representation and since some low down loans, like the 5% down often have a restriction of 3% on seller paid closing costs. Many first timers would also have to do without representation since they typically don't have cash out of pocket.
Wait, a realtor with a high school education should earn as much as a lawyer who spent 6 figures on an education?
Hahahahahahahaha....
I see so many realtors jumping all over this thread because they know they are waaaaaaaaay overpaid for the lack of time they put into a sale vs an hourly rate.
I need some popcorn before I finish reading this thread...
On every home I have purchased, the realtor spent between 2 and 5 hours of time and got paid big bucks because they belong to an association that holds the MLS and keys to the home hostage. Anything a realtor can do, I can do, and do better. In my last purchase the closing officer at the bank actually spent 100s and 100s of hours over the course of almost 2 months working closely with us on a daily basis to get the home closed, due to the seller's going through a complicated relocation. The only time I ever saw my realtor was when she pranced into the home with me 2 times, holding that sacred key and lock box code that ensured her fat commission. The 3rd time I saw her was at the closing where she sat there and watched the attorney do all the work.
I have close family members who are realtors btw, and they have yelled "yes" and high-fived me on more than one occasion after bragging about how they just sold a home in 1 day/1 week/ 1 month, and made some epic commission for almost zero work. Realtors do this all the time around close family members and friends - trust me. I have seen it over and over.
I think I see where the problem lies and this post almost perfectly illustrates it; the perception by the general public seems to be that whatever fee that's paid out for a real estate transaction is paid out in it's entirety directly to the agent, or agents, involved. This is not so; you're paying thebrokerage(s) and they determine whatever split of that goes the agent(s) So, it's the same as your scenario: a portion is going to overhead, a portion is going to the broker and a portion is going to the agent. People seem to think that when they write a check for XXX amount of dollars that the entire proceeds go to the agent, so I understand how they can feel that's an excessive amount;if they were properly educated as to how little of that fee actually goes to the agent, they might start to feel differently about whether the fee is appropriate or not (in their mind).
Yea, part of it goes to the Broker. Then you have the National Association of Realtors Cartel. $$$The 2nd largest lobbyist in the USA! $$$ So a chunk of your commission fee goes into the system, lobbying for the NAR to maintain their monopoly over the real estate market so they can keep raping consumers and holding the MLS hostage.
I agree, more people DO need to understand this
Regardless of where the entire sum of the excessive commission amount is going, it is still too much, and the profits are being used to trickle down into a corrupt system that controls and manipulates the housing market, and obscene fees.
Along the pay by hours/time. I once had an attorney phone me from his car while on the way home from his vacation home to inform me that there had been no action on a situation.
He tried to bill me for the call. We had a come to jesus meeting about that.......LOL
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