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...I believe most of the RE's that post here would much prefer to be a "listing agent" as opposed to a "buyer's agent." ...
If all things were equal I prefer working with buyers. However, all things aren't equal. You can only control your time when working with a seller. For that reason only I prefer listings, because I can work with more sellers at a time than I can buyers.
If all things were equal I prefer working with buyers. However, all things aren't equal. You can only control your time when working with a seller. For that reason only I prefer listings, because I can work with more sellers at a time than I can buyers.
I get that, everyone's time is valuable outside of work, there's more to life than work, we all would prefer to work less and still live a life.
RE's would rather list for the reason you state and /or other reasons, as it is less "work" and they can list more properties with less "time" and earn a fair/good/great wage based on their going commission rate.
I'm still and will always be of the mindset that buyer's agents are not needed. Educated buyers can facilitate if they wish, the use of a listing agent or go FSBO, the latter being my preference.
You can believe that all you want. Funny thing, what most people believe, they believe and the internet does not change their mind.
If you think if you do something 3 or 4 times in your adult life makes you an expert - go right ahead. No one will stop you.
If people don't find value in a real estate agent don't hire one. Buyer's agents have existed for 30 years. Some people seek out the best agents in their market.
Nothing could possibly go wrong in a real estate transaction:
A For Sale By Owner was charged $16,000 for a lead-based paint sales disclosure violation last August paid to the Federal Government.
A local Buyer unrepresented by a real estate broker got a $112,000 "fine" for a FIRPTA violation.
You don't know what you don't know. But I have errors & omissions insurance.
I get that, everyone's time is valuable outside of work, there's more to life than work, we all would prefer to work less and still live a life.
RE's would rather list for the reason you state and /or other reasons, as it is less "work" and they can list more properties with less "time" and earn a fair/good/great wage based on their going commission rate.
I'm still and will always be of the mindset that buyer's agents are not needed. Educated buyers can facilitate if they wish, the use of a listing agent or go FSBO, the latter being my preference.
Without buyer's agents, in my area, buyers would be signing contracts prepared by the seller. Most buyers, particularly first time buyers, don't have any idea what should be in their contracts, and what might be missing if you leave it up to the seller.
Many buyers need help dealing with their own loan officer and underwriter demands. Demands for testing, inspections, county records, road maintenance agreements, all kinds of stuff we need to facilitate getting to the lender. I can't find all their pay stubs and financials, but I take care of everything else, AND keep the lender on track for deadlines.
I'd do away with listing agents before I'd do away with buyer's agents. Buyers have a lot more to do... And they usually need more help doing it.
So, if after you explain to your buyer the situation (this seller is offering a 2% commission and you agreed to 3%), and your buyer says, “I’m sorry Bo, I really like you but I’m not willing to do that,” do you let them out of your agreement?
Sorry that it took me a while to respond.
In my market, the most common BA compensation on a resale is 2.4%.
My Exclusive BA Agreements say I will be paid 2.4%.
I explain to them then what that means, and that there is a very small chance that for whatever reason the Listing Agent will offer me less, and they will be responsible in one way or the other to make up the difference. And if they have a problem, then they're free to walk away early on.
Maybe we go back to the OP's question and I tell my client "they're only offering 2%. The best I can do to keep you from scratching a check for the difference at closing is to add it to the offer price."
There are many possibilities whereby I am paid as my client and I have agreed. There are also possibilities where I accept the reduced amount.
You can believe that all you want. Funny thing, what most people believe, they believe and the internet does not change their mind.
If you think if you do something 3 or 4 times in your adult life makes you an expert - go right ahead. No one will stop you.
If people don't find value in a real estate agent don't hire one. Buyer's agents have existed for 30 years. Some people seek out the best agents in their market.
Nothing could possibly go wrong in a real estate transaction:
A For Sale By Owner was charged $16,000 for a lead-based paint sales disclosure violation last August paid to the Federal Government.
A local Buyer unrepresented by a real estate broker got a $112,000 "fine" for a FIRPTA violation.
You don't know what you don't know. But I have errors & omissions insurance.
FIRPTA would not be an issue for me, my price point is well below the amount that it could be an issue & it would be my primary residence:
When real property in the U.S. is transferred by a foreign seller, the transfer is subject to tax withholding under the Foreign Investment in Real Property Tax Act (FIRPTA). As of February 16, 2016 the withholding rates are as follows:
If the amount realized (generally the sales price) is $300,000 or less AND the buyer will use the property as his/her residence, no withholding is required.
That's an unfortunate situation in your other example. Did either party forego retaining an experienced real estate attorney, that would have drafted a sales contract and a disclosure form for each party to sign? Did the buyer not hire an experienced home inspector, that may have been insured and bonded as well, noted the possibility of lead based paint due to the age of the property, and then, list that in their report to the buyer and state that a lead based paint test is needed?
Seems someone did not do their due diligence. That's unfortunate, I make sure to cover my back end.
I know that, I wrote I would prefer the latter, which is FSBO, which to me, means, there is no RE agent on either parties side.
Eh, in my area at least there are very few FSBO's so not much to choose from to begin with, and many of the ones there are are either overpriced (because they seem to tack the missing commission onto the price they want) or don't even respond to inquiries.
It's annoying enough selling crap out of my garage on craigslist, I couldn't really imagine doing that with the house itself. I would certainly like to see lower commission %'s for agents, but I don't think they should disappear completely. If it's a seller's market I'd argue that you do "need" a buyer's agent if nothing else to open the door. I've tried contacting listing agents directly and often times they will either try to pawn you off to a buyer's agent in their office anyway or not respond, most likely expecting that they'll sell it to someone that already has an agent anyway.
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