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.
Even with the inexpensive places that we're buying as investments, we'd come out ahead paying by the hour as opposed to 3%. Frankly, I'd rather just pay the transaction coordinator and leave the buyer's agent out entirely.
I have yet to see what a buyer's agent does for me that I don't already do myself.
Quote:
Originally Posted by Lovehound
Increase market exposure?
Hey, have your selling agent set the commission fee split at 100/0.
Are you reading my posts? I'm a buyer, not a seller. When it comes time to sell, I will de-ice my license, hang it with a discount broker, and sell everything in one fell swoop. I hope to then not give another thought to real estate for the rest of my life. I don't do this because I enjoy it. I do it because it's an insurable, tangible investment.
Buying real estate is something I would enjoy considerably more if there were no agents involved. My answer to "what would you pay by the hour" is the same as Michael Corleone's response to Sen. Geary, "My offer is nothing."
I absolutely would prefer to go it alone, although I do value transaction coordinators and will continue to gladly pay them for their time and effort. Their services are worth something to me. The agent's services to me begin and end with the MLS.
"When the student is ready, the teacher will appear."
Just in case it has been missed in the thread, I will repeat the facts for consideration by those who are ready:
Revenue - costs = profit/loss
Gross - costs = NET
Paying clientele covers the costs of non-paying clientele.
Just what I thought. You have no answer.
It was you who originally said...
Quote:
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.
And as I pointed out, it's not a perfect example because you're simply trying to shoehorn your logic into the scenario. Comparing a real estate agent that provides a service to non payers to retail costs that can't actually be quantified is beyond ridiculous. I've already posted the very simple economic differences between the two, but you conveniently ignore them.
You also said
Quote:
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.
Non paying customer costs are not tracked as part of the costs in retail. Non paying customers cost about zero (or close to it) in terms of overhead because the costs would exist regardless of the non buying customer.
Do you really not see the difference between a commission based model where free riders benefit greatly to an hourly model where work is paid for directly.
Last edited by Pyramidsurf; 07-12-2014 at 06:48 PM..
A person who walks into a retail store and buys nothing doesn't receive any goods and nothing is exchanged. A person spending hours with a realtor receives services directly to their own benefit and will have to be covered by the next paying client.
If you are not a Realtor, why do you care? It costs you nothing unless they buy.
Buyer on the other hands want to be assured they will get something if they pay. Like walking into a supermarket, you are assured that if you buy nothing it will cost nothing.
Quote:
Originally Posted by ScoopLV
Buying real estate is something I would enjoy considerably more if there were no agents involved.
You enjoy this stuff????????? I don't enjoy it any more than I take my car in to have the oil changed.
How does the buying experience cost you anything when the seller pays the commissions?
Ever take an economics course? It is baked into the price. It's sad that people get paid a hundred an hour without knowing that. Our economy is complete trash.
Ever take an economics course? It is baked into the price. It's sad that people get paid a hundred an hour without knowing that. Our economy is complete trash.
"There are lies, damned lies, and statistics."
The people who see things like "seller pays the commission" as concrete do so because they have a vested interest in seeing things this way. If they changed their philosophy they might have to take a hard look in the mirror and admit that they are part of the problem.
Ever take an economics course? It is baked into the price. It's sad that people get paid a hundred an hour without knowing that. Our economy is complete trash.
I did think this at one time until I bought and sold homes without a Realtor...
The selling price was never 6% under market ever. The price was market price especially when I was competing with other buyers.
The seller is thinking about saving the commission and I'm not saying it isn't possible for a seller to net more by eliminating the middle men.
What I am saying is there is seldom a break for the buyer because sellers still expect top dollar.
Last edited by Ultrarunner; 07-13-2014 at 12:14 PM..
Ever take an economics course? It is baked into the price. It's sad that people get paid a hundred an hour without knowing that. Our economy is complete trash.
Sshhh, that is supposed to be a secret. It is self-service to keep it that way which is why a thinking buyer/seller should use professional legal advice for unbias information.
Never argue with an idiot. They will only bring you down to their level and beat you with experience. Hopefully, thanks to many threads like this, people will understand the current system and look for better choices that don't involve commissioned sales people, unless of course they have money to throw away.
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.
