U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-18-2018, 06:47 PM
 
Location: Raleigh NC
7,773 posts, read 6,123,712 times
Reputation: 6898

Advertisements

Quote:
Originally Posted by LGR_NYR View Post
When I was a Realtor it was during the 1% and 2% sales boom. It really hurt the real full-service realtors. I would work on a flat rate or percentage depending on the difficulty of the sale and the eagerness of the client to sell. Back in those days I could list a house on a Tuesday, have an open house on a weekend and if the house met a certain type of criteria, conditions, location school system I would have several binders with offers to negotiate by Monday.That type of sale I cold work on a flat rate because in most cases the house sold itself. The harder sells, divorce, bad condition that needed time to sell and needed more of an effort by me usually resulted in 3% commission fee. Many of those times the client tried a cut-rate internet brokerage and the house wouldn't sell. If my memory served those realtors required a 6-month listing. I would do a 30-day listing if I knew I had someone waiting and I could get 4% out of the seller because now they are beyond motivated, they are desperate. Winter is coming, the house could be in foreclosure and they need to move it or lose it. Timing is everything but I was able to create a nice reputation as a miracle worker back then. I did very well for myself but, I don't miss the business at all.

Today the commissions are 3% to 6%. I remember in the 80's and 90's we were getting 6% and 7% and the home prices were significantly less but we had much more inventory then we do today.
why'd you get out of the business, since according to so many it's easy to make a lot of money?
Reply With Quote Quick reply to this message

 
Old 04-18-2018, 06:59 PM
 
Location: Austin
11,039 posts, read 6,219,378 times
Reputation: 11930
Quote:
Originally Posted by BoBromhal View Post
unfettered access? No.

Can a consumer in major markets (including mine which is a MSA of ~ 1MM people) see: Active, Under Contract, Recently Sold?

Yes.
so is the information to buyers and sellers held hostage by your profession?

how long a property was on the market? time on the market is arbitrarily reset in many markets and is important to buyers and sellers. turnover, days on market, selling price, etc are important to buyers and sellers. the real estate monopoly on information is crumbling due to the internet, however. trusting an agent's comps/research/opinion is nave for both buyer and seller. why should anyone trust you to tell them anything just because you have the keys to information the rest of us don't have?

Last edited by texan2yankee; 04-18-2018 at 08:00 PM..
Reply With Quote Quick reply to this message
 
Old 04-18-2018, 08:10 PM
 
Location: Rochester, WA
3,832 posts, read 2,056,232 times
Reputation: 10577
I think it's great that the information is out in the public now. It makes for better, more informed buyers and eliminates one of the more time consuming tasks for agents.... browsing through listings. Buyers WANT to do that at all hours of the day and night... and they're the best ones to do it. They know their tastes better than anyone.

But most sellers still want to keep some of the mls information like their names, phone numbers and schedules, private. And most still want licensed agents to control access to the home.

Most sellers don't want to do that.
Reply With Quote Quick reply to this message
 
Old 04-18-2018, 09:22 PM
 
137 posts, read 56,669 times
Reputation: 657
Quote:
Originally Posted by 20yrsinBranson View Post
In Missouri, Realtors are required to present all offers. Realtors do not "negotiate" prices, terms or conditions. However, having a percentage based commission does "encourage" realtors to seek out potential buyers who are likely to offer "top dollar" to sellers instead of low-balling them. If I were selling my home, I would very much prefer to have a commission based realtor list/show my property as opposed to a $2995 realtor who will gladly show my property to any Schmoe on the planet, even those who are not qualified. After all what do they care? Their commission is going to be the same regardless of who buys it.
Wait, do I understand correctly that your position is that commissioned realtors are motivated only by the money they might make, and you can't imagine a situation where a flat rate realtor might do a great job just because it's the right thing to do, because they take pride in their work, or because it's slimy to do otherwise? I find that very interesting.
Reply With Quote Quick reply to this message
 
Old 04-18-2018, 10:25 PM
 
Location: Staten Island, NY
2,978 posts, read 779,635 times
Reputation: 2167
Quote:
Originally Posted by BoBromhal View Post
why'd you get out of the business, since according to so many it's easy to make a lot of money?
I worked for my Father. He sold his share of the business to his partners and moved on. I spent my whole life wanting to follow in my Father's footsteps. I grew up in the Real Estate business and I knew my stuff. My dad was a legend on Staten Island, he had a great reputation too. He really taught me everything I know. I watched him as much as I could. He was so easy to deal with. No pressure, great patience and he could negotiate a deal with anyone. I answered phones, processed deals. I placed and removed the for sale signs. I literally did it all. We were the first Century 21 in the country to have a Real Estate sales kiosk in a major mall. I worked there for a while when I was in college. I also originated mortgages too for a while when they owned a Mortgage bank. I kind of thought the sales would be easier than it really was and my Father never made things easy for me. In addition, when I graduated HS I didn't want to go to college right away. My Father put me with my neighbor who at the time owned a trucking company. The idea was to work me to death until I gave in and went to college. My Father also taught the RE licensing course and wouldn't let me take it without attending college business management courses. I was never afraid of hard labor. I worked for a landscaper cutting grass, I worked at McDonalds I knew how to work. I paid attention to what my boss at the time did and kind of became indispensable and fell into the trucking business which I have remained for over 25 years. I always helped my Dad out part-time whenever he needed me. Especially with the Mall that was a bit of a nightmare to staff. I had real practical experience before I ever had my RE license.

It was good because I found myself and I eventually became partners with my boss. But, before I did that I bounced around working for UPS and Airborne Express learning different systems and methods. After 11 years of killing myself, I was burnt out. I left the partnership, had some money to sustain me and decided to dive into the RE business full time. After a little over a year I realized I didn't love it. I decided to start a new Trucking company from the ground up. But, I had amassed a decent client list that resulted in referrals from my friends and my gym. The gym was a tremendous source of business for me. I continued in the business until 2007. It was a good decision for me because it took the pressure off of me to have some money come in from a rental or sale while I built up the trucking company which took years longer to establish than I thought it would.

The RE business was very good at that time and having a smartphone way before anyone else did enabled me to stay ahead of the curve and run both businesses. For the most part, the homes sold themselves.
Roughly a year before the economy tanked the trucking business as a whole took a downturn. You can judge what an ecomomy is going to do 6 months out by what the freight levels look like and we went down. My father who was also very political was given a tremendous opportunity and decided it was time to move on from Real Estate. He has been in the business for almost 40 years. I could have stayed, however, I saw the writing on the wall from a few months ago and saw things wobbling. I had all of my money invested in my trucking company. I had 2 equipment that I personally guaranteed and all of my cash in it and a mortage on my home. I had to decide what I wanted to do. I decided to concentrate on growing the trucking company and since I didn't have this great love for the real estate business I left it. As it turned out I ultimately made the right decision because the market completely collapsed.
Reply With Quote Quick reply to this message
 
Old 04-19-2018, 09:16 AM
 
Location: Columbia, SC
8,851 posts, read 17,447,111 times
Reputation: 6212
Quote:
Originally Posted by texan2yankee View Post
the MLS monopoly will go away eventually. it should. the overwhelming majority of real estate agents add no value to a transaction other than their closely guarded MLS statistics.
I don't think you know what the MLS is. The MLS was paid for and created by brokerages to share information and compensation with the other brokerages. Originally it was never intended for any public use.

Z, R, T and all the other 3rd party sites get their info from MLS. If there is no MLS where will you get your information from on homes for sale?

How can you say the information is closely guarded? It's syndicated everywhere now, including Z,R,T.

Also, the majority of agents add at least some value.

It's uncommon for a poster to be entirely wrong, but congratulations sir, you have succeeded.

Actually, you're correct in that the MLS will eventually go away. Nothing is forever. But me ask you this, if the MLS were to cease existence what would take it's place and how would the information get there?
Reply With Quote Quick reply to this message
 
Old 04-19-2018, 01:19 PM
 
8,384 posts, read 7,373,281 times
Reputation: 18254
Quote:
Originally Posted by BoBromhal View Post
why'd you get out of the business, since according to so many it's easy to make a lot of money?
Truth is, that 80% +- of all agents entering the real estate business, leave the business for one reason. The reason----They can't make enough after expenses to support themselves. A lot of agents, would make much more money if they went to work for McDonald's or Starbucks.

Only the top 20% of all agents, make good money.

Figure it out yourself----There are about 1.5 million homes sold each year. There are about 1.4 million agents in the country.
Reply With Quote Quick reply to this message
 
Old 04-19-2018, 01:37 PM
 
Location: Raleigh NC
7,773 posts, read 6,123,712 times
Reputation: 6898
there are about 7 million homes sold each year, but you'd still likely starve doing 5 transactions a year, at the US average house price.
Reply With Quote Quick reply to this message
 
Old 04-19-2018, 01:56 PM
 
3,182 posts, read 2,725,261 times
Reputation: 6487
Quote:
Originally Posted by texan2yankee View Post
so is the information to buyers and sellers held hostage by your profession?

how long a property was on the market? time on the market is arbitrarily reset in many markets and is important to buyers and sellers. turnover, days on market, selling price, etc are important to buyers and sellers.
For what it's worth, the MLS details of sales is often incomplete and wrong. An agent with total access to the MLS data still has to allow for omitted concessions, inclusions and/or outright manipulations. It's rare in my market that a listing that lists contents as "optional/negotiable" is clarified as included or not when the agent closes the listing. Were they included in the sales price? You can't be sure. Same for commission concessions or prepaid assessments or lease-backs, etc. Agents are supposed to detail concessions when closing listings but these are real estate agents after all. Garbage in, garbage out.

Don't get me started on days on market. That stat is truly accurate maybe half the time.
Reply With Quote Quick reply to this message
 
Old 04-19-2018, 02:50 PM
 
Location: Staten Island, NY
2,978 posts, read 779,635 times
Reputation: 2167
Quote:
Originally Posted by BoBromhal View Post
there are about 7 million homes sold each year, but you'd still likely starve doing 5 transactions a year, at the US average house price.
Unless you are doing Manhattan Real estate that would be a decent living. Our side of Manhattan it's $30 grand a year. That's part time for the rest of NYC, NYS and most of NJ.
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top