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You would be wrong. In Colorado, the state mandates the forms that we as brokers, can use. They are on the Real Estate Commission's website to use for free.
Knowing what to put in each blank, is as they say priceless.
Anytime there are significant amounts of money leaving my pocket its a necessary evil. I am a strong DIY person but the law does not always allow for that and that's when there are issues.
It is hard for me to see value in something that I could otherwise do myself but don't have the time to check off all the boxes the state requires to get my own certs. Trying to compel someone to sign a contract that is not in their best interests is not being treated like a rock star, it is being fleeced with a smile. Now if I can red line the contract and go back and forth until it is a fair and equitable agreement then that's fine, but I wont sign a canned contract put out by the brokerage to maximize their profits off my ignorance and to cover their own rear ends.
I have also heard that there is language in these contracts that absolve the realtor and the brokerage of legal liability, why on earth would I want to release you of that if I am paying out 5 figures? Brokerages get paid enough that they should be absorbing that liability.
You realize that you just provided the reason people utilize the services of a real estate agent, right? or any other service professional, such as a plumber or mechanic. People utilize the services of an agent precisely because they have neither the time and/or experience required to conduct the transaction successfully.
Now, if you feel that an agent couldn't do a better job than you, then don't use one; no one is forcing you to utilize the services of an agent. And as for contracts, if you come across terms in a contract you don't agree with, change them; if the other party agrees with your changes, there you go, and if not, then move on until you find someone who will agree to your terms. There is absolutely no force compelling you to sign any contract with a real estate professional in order to conduct a real estate transaction.
It sounds awfully similar to someone owning common stock in a company. Just because I own some stock does not mean that I get to dictate in any sort of meaningful manner how the company is ran. If I owned enough stock I might get a vote but that does not mean I am sitting in a throne dictating which is how some of the realtors on here act.
If a brokerage that is "part owner" wants to post homes for a flat fee they can. Sure you can put in your anti competitive vote so that the company is at risk of anti trust but why would they risk their company because you want to corner the market to artificially preserve your bill rate?
This makes no sense. The only types of listings not allowed on my MLS are open listings which is when a seller is represented by more than one brokerage. What anti-competitive vote are you talking about?
If they dident they may run afoul of anti trust and anti competitive behavior. If it happens once or twice no one will notice but if a brokerage starts making a habit of it and people notice and can document it then they are putting their business at risk.
There is a reason anti trust was created, to prevent this very sort of anti competitive behavior.
You don't understand what you are saying. It has nothing to do with antitrust unless there is a coordinated effort to not show those homes. Most agents out here are pretty upfront about not showing lower compensation offerings, and some use buyer agency agreements in which the buyer picks up the tab for the remainder of the fee. So it isn't that agents are doing things to consumers, but consumers are making choices to not see those homes.
You sign a contract based on that offer, if its an FSBO at 1% you sign on to that or not. This blanket 6 month or one year contract business is foolish.
When I see a house and want to put an offer I will sign a contract, until then why would I sign anything?
You may get suckers to sign something that is not in their best interests but that is predatory.
A person works at a widget factory and has a contract that they make $1000/wk and gets paid every 2 weeks. There is a slow month of widget sales and it drives the price down. Can the owner of the widget factory go back to that person and say "Hey, I didn't have good widget sales month so for the last 2 weeks instead of paying you the $2,000 you earned I'm only going to pay you $650."
Is that legit? Should the owner be able to decide after the fact how much they will pay the employee?
No, but that's the difference between a staff employee working for a company and working with an individual member of the public.
A more honest analogy would be the widget factory owner telling the buyer they are going to buy X number of widgets whether they need them or not and then colluding with other widget makers to fix the prices of said widget (ie the "standard 6%") at a sky high rate. You as the buyer may only need 1 or 2 widgets but because of the collusion you end up paying for a whole batch at an inflated price.
Quote:
Originally Posted by Brandon Hoffman
A person works at a widget factory and has a contract that they make $1000/wk and gets paid every 2 weeks. There is a slow month of widget sales and it drives the price down. Can the owner of the widget factory go back to that person and say "Hey, I didn't have good widget sales month so for the last 2 weeks instead of paying you the $2,000 you earned I'm only going to pay you $650."
Is that legit? Should the owner be able to decide after the fact how much they will pay the employee?
A person works at a widget factory and has a contract that they make $1000/wk and gets paid every 2 weeks. There is a slow month of widget sales and it drives the price down. Can the owner of the widget factory go back to that person and say "Hey, I didn't have good widget sales month so for the last 2 weeks instead of paying you the $2,000 you earned I'm only going to pay you $650."
Is that legit? Should the owner be able to decide after the fact how much they will pay the employee?
Come on - everyone knows that widget sales are cyclical...
No, but that's the difference between a staff employee working for a company and working with an individual member of the public.
A more honest analogy would be the widget factory owner telling the buyer they are going to buy X number of widgets whether they need them or not and then colluding with other widget makers to fix the prices of said widget (ie the "standard 6%") at a sky high rate. You as the buyer may only need 1 or 2 widgets but because of the collusion you end up paying for a whole batch at an inflated price.
There is no collusion. The reason why 1% commission offerings aren't common is because they aren't profitable and those companies go out of business because they can't do math. That is why Redfin has changed its model over time. What they thought consumers wanted turned out to not be true.
The problem with your thought process is that you assume all buyers and sellers think like you and that they are stupid because only stupid buyers would sign a buyer agency agreement.
A person works at a widget factory and has a contract that they make $1000/wk and gets paid every 2 weeks. There is a slow month of widget sales and it drives the price down. Can the owner of the widget factory go back to that person and say "Hey, I didn't have good widget sales month so for the last 2 weeks instead of paying you the $2,000 you earned I'm only going to pay you $650."
Is that legit? Should the owner be able to decide after the fact how much they will pay the employee?
No, but that's the difference between a staff employee working for a company and working with an individual member of the public.
No, it's due to the method of payment. You can work for an hourly wage and be paid for each hour you work; you can work for a set salary and be paid the same amount no matter how many hours you work; or you can work on commission and be paid for results. And, of course, there can be combinations of these basic payment methods.
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