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when we sold our home in the pocono's we offered an extra 1% commission on top of the 6% .
we wanted them concentrating on our home more , not others .
it paid off . we sold ours and 5 years later others are still unsold . our house fell from the 235k we sold at in 2012 to 182k today . luckily we sold quickly . well worth the extra 1% we offered .
when we sold our home in the pocono's we offered an extra 1% commission on top of the 6% .
we wanted them concentrating on our home more , not others .
it paid off . we sold ours and 5 years later others are still unsold . our house fell from the 235k we sold at in 2012 to 182k today . luckily we sold quickly . well worth the extra 1% we offered .
Smart. I find it amusing how often customers will nitpick on the price of high end purchases in which it's not a good idea. My home inspector wife is shocked by how many people call her trying to knock down her already reasonable rates. They will pay $400,000 for a home without giving it a second thought but don't want to pay $400 for the inspection that will determine if the home is habitable
I love how your example is from 10 years ago.... Things have changed significantly since then.
MY EXAMPLE IS FROM LAST YEAR! Read my ENTIRE post again
Anyway, I didn't like paying my reator 5.5 percent last year, but she got the job done. Had two buyer's financing fall through. Finally the 3rd buyer worked out, but all 4 buyers came within a week of relisting. Redfin in my opinion is not full service. At least not in my area. If they have a straight forward sale, then maybe but throw a problem in and forget it! Many of my friends started with them & then switched to a full service realtor for quick results. I agree the payout needs to change, but in the Chicago land area it hasn't yet!
MY EXAMPLE IS FROM LAST YEAR! Read my ENTIRE post again
Anyway, I didn't like paying my reator 5.5 percent last year, but she got the job done. Had two buyer's financing fall through. Finally the 3rd buyer worked out, but all 4 buyers came within a week of relisting. Redfin in my opinion is not full service. At least not in my area. If they have a straight forward sale, then maybe but throw a problem in and forget it! Many of my friends started with them & then switched to a full service realtor for quick results. I agree the payout needs to change, but in the Chicago land area it hasn't yet!
Yes but you last used a discount broker 10 years ago and that was the other poster's point.
The Internet has changed many business models. Years back one had no way to view properties, get pricing, etc. other than using a Real Estate Agent. The information is easily available via the Internet yet the business clings to the old payment structure of 6%. Yes the smarter agents are using the Internet but they still cling to the 6%.
I do not know the numbers, but I will say rarely is the listing agent the selling agent so they typically split the 6% this is why agents fight tooth and nail for listings as it pretty well guarantees them 3% even if they do very little.
I do not believe the answer is as simple as OK, let us keep they way it is done but go to 4%. What is better? I do not know but I doubt the business will "modify" its model unless forced to do so.
My advice at this time is simply demand a lower commission.
If using Redfin is not a consideration, how do they provide "leverage" in your negotiations?
I would consider using them but it is the matter that several RE agents don't believe that another agent is willing rebate any of the credit. Pointing them to Redfin starts the conversation.
One of the issues is that we are talking about 2 very different markets. In Cary, NC the average home sells for 300K. The 6% model might still work there seeing that you are getting 9K. In high COLA areas where that same home in Cary sells for 800K, the agent is walking away with 24K.
Now explain to me the difference in selling a home in San Diego versus Cary. I'm sure there are some slight differences due to state laws but the majority of the process is the same.
All real estate is local, of course. "Location, location, location."
We listed with a discount broker - 1%. The listing price was $720K. Over the course of 4 months, dropped the price to $700K yet all we got were low-ball investor offers with ridiculous strings attached.
We pulled the listing, and then re-listed with a full-service agent, who encouraged us to ask $730K. Within 3 days we had 3 offers in the $720K to $730K range, accepted one and sold the house.
We concluded that full-service agents were indeed discriminating against our listing because of our use of a discount broker.
*****
Our vacation home is in a popular ski resort town where most single family homes are in the $1.2 million to $5 million range, although there are outliers -- homes as high as $25 million. Buildable empty lots for sale are in the $800K to $3 million range. Absolutely no discount brokers. Zillow shows almost no FSBOs.
Yes but you last used a discount broker 10 years ago and that was the other poster's point.
Yes and I learned my lesson not to waste my time with discount brokers. That was the point I was making! That's why when we sold last year we used a full service broker and had no problem paying the higher commission. She did her job well!
I suspect the "0% commission" is realtors advertising for potential buyers - who think they must pay a RE commission to have a realtor help them locate a house. Many people on the RE Forum do not seem to realize that the seller pays the RE commission, which they split with the buying RE agent. This is evident in the number of people trying to buy without a RE agent, in order to get a lower price.
Houses sell at or about the prevailing market price, regardless of RE fees involved. The notion that one can buy the house for less without a realtor, depends on whether the owner is willing to drop the price of the house ... or the selling realtor is willing to reduce their commission by 1-2%. This is typically between the seller and their realtor, not the buyer and either realtor.
The old axiom about clients and lawyers, applies to inexperienced clients and realtors. "The client/buyer who chooses to represent themselves - has a fool for a client"
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