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)
 
Old 04-30-2018, 12:59 PM
 
1,528 posts, read 724,410 times
Reputation: 2062

Advertisements

Quote:
Originally Posted by Diana Holbrook View Post
Should we quiz the kid at McDonalds about how much of the price of our burger is paying his wages?

Do you do this with all purchases JB?

The fact is, our commissions ARE spelled out quite clearly in the closing documents that the buyer sees and signs, and I can't think of another industry where that's true.
Hi Diana.

the hint is in the name "closing documents". Do they see closing documents when they engage an agent? No, they see them when they are closing! Along with a thousand documents and numbers.

I'm NOT arguing that commissions are hidden from buyers. I'm arguing that there is not a proper explanation as I've laid out (ok slightly dramatized) nor is it usually explained to buyers what the cost of the buyer's agent services is. Never mind the impact on your lifetime wealth when you finance something like that. Sure, they can ask or look it up at closing but they don't....why? because they don't really care if they are led to believe that the seller pays for it.

Wouldn't an advisor looking out for a client explain this up front? Serious question. Not meant to criticize anyone. It is a big impact on the buyer's wealth and they can certainly decide to finance commission for 30 years but at least the impact should be clearly explained to them.
Reply With Quote Quick reply to this message

 
Old 04-30-2018, 01:06 PM
 
Location: Cary, NC
31,592 posts, read 55,295,005 times
Reputation: 30145
Quote:
Originally Posted by 20yrsinBranson View Post
A contract is a contract. But I guess it depends on how badly you want to sell. I might go an extra 1% for a full price cash offer, but nothing else.

In my state realtors are required by law to present all offers made. I would contact the board of realtors for your area and determine if there is a similar rule there and if it is legal for realtors to attempt to extort money out of sellers in this fashion. I get the feeling they are doing something unethical, if not illegal.
There is no information presented in the thread by the OP to lead to these conclusions.
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:08 PM
 
Location: Rochester, WA
3,827 posts, read 2,047,976 times
Reputation: 10552
I tell all my clients how I get paid, very early in the relationship! Why do you think we don't?

Even you are not nearly as confused as you pretend to be. It's just not a mystery, nor is it confusing.

How do you get paid JB?
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:21 PM
 
1,528 posts, read 724,410 times
Reputation: 2062
Quote:
Originally Posted by Diana Holbrook View Post
I tell all my clients how I get paid, very early in the relationship! Why do you think we don't?

Even you are not nearly as confused as you pretend to be. It's just not a mystery, nor is it confusing.

How do you get paid JB?
Telling them how you get paid is different from telling buyers clearly that they pay for your services as their buyer's agent. And do you explain the impact of having that amount rolled into the purchase price so that it can be financed by the buyer (if they are financing it)?

Are you basically saying that you explain it to buyers as I've suggested in my earlier post?
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:31 PM
 
Location: Cary, NC
31,592 posts, read 55,295,005 times
Reputation: 30145
Quote:
Originally Posted by GoPhils View Post
But using this same argument, if the attorney bills by the hour, aren’t they “incentivized” to work a few more hours than might be necessary?
Billable hours overages are a common complaint in many professions and trades.
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:31 PM
 
6,359 posts, read 7,321,320 times
Reputation: 10807
Quote:
Originally Posted by just_because View Post
Are you basically saying that you explain it to buyers as I've suggested in my earlier post?
No one would "explain it" as you do.
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:40 PM
 
Location: Rochester, WA
3,827 posts, read 2,047,976 times
Reputation: 10552
No, JB, I don't explain it the way you've suggested.

I don't really think I will use your script either. I think it sounds rather pedantic. I do explain to them early on, if they really don't know, how, when and how much we get usually get paid. As near as I can... before we even find the right place or know its details.

I have said things like:

"Please don't ever apologize for wanting to look at another place. It's our job! We enjoy it, and we will be paid when you find the right one. No matter how long that takes. That's how it works!"

They understand that they are the ones paying for the house. And that we are paid out of those proceeds. They understand how much of the purchase they are financing. They understand interest. Thinking back, about half of them have sold or were currently selling a house also, so they understand quite well how it works from both sides of the transaction. My buyers are not confused. They are not morons.
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 01:50 PM
 
209 posts, read 96,907 times
Reputation: 384
Quote:
Originally Posted by El Senor View Post
Laugh. And decline the offer in writing to both the agent and buyer. Let those buyers know she cost them the house.
OMG. I agree with you. That's a frickin' rip.
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 02:34 PM
 
3,782 posts, read 1,721,467 times
Reputation: 2141
Quote:
I have said things like:

"Please don't ever apologize for wanting to look at another place. It's our job! We enjoy it, and we will be paid when you find the right one. No matter how long that takes. That's how it works!"

They understand that they are the ones paying for the house. And that we are paid out of those proceeds. They understand how much of the purchase they are financing. They understand interest. Thinking back, about half of them have sold or were currently selling a house also, so they understand quite well how it works from both sides of the transaction. My buyers are not confused. They are not morons.
not to beat a dead horse but... what you describe is the entire problem. you are saying to them that you are paid out of the proceeds -- but what exactly does that mean if the buyers agents commission rate being offered is less than the going average? and are you going to give them a hard time if that other place they want to see offers a 1% co-broke to you vs. 3%? the vast majority of consumers don't understand why a buyers agent would want more in a P&S contract, or worse yet what procuring cause is when that issue arises.

and many, many, many buyers would be very surprised to learn that someone driving them around to look at houses, in absence of a written buyers agency agreement, works for the seller of those houses and not the buyer.

Quote:
They understand that they are the ones paying for the house. And that we are paid out of those proceeds.
does this mean the buyer is actually paying the real estate commission?
Reply With Quote Quick reply to this message
 
Old 04-30-2018, 02:36 PM
 
5,668 posts, read 7,258,650 times
Reputation: 3177
Quote:
Originally Posted by just_because View Post
Telling them how you get paid is different from telling buyers clearly that they pay for your services as their buyer's agent. And do you explain the impact of having that amount rolled into the purchase price so that it can be financed by the buyer (if they are financing it)?

Are you basically saying that you explain it to buyers as I've suggested in my earlier post?
The caveat is that if for example a seller is offering 2.5% to the buyer's agent as opposed to the "standard" 3%, they are not planning to sell the house for any less than they would if they were offering 3%, and thus the buyer really isn't getting any savings.

Quote:
Originally Posted by MikeJaquish View Post
I think so, too.

If the agent is withholding the offer at the instruction of the buyer, it is quite acceptable action.
Tacky and crude as related? Maybe.

But, if the buyer has told the agent to confirm commission prior to forwarding the offer, it is the right course of action.
If that's the case, I think the question would be why? Shouldn't she have told the buyer something like, "hey, the seller should really just care about their net, so even if I get them to agree to a higher commission, it's probably going to mean that we'll need to offer a higher price than we otherwise would have."

Quote:
Originally Posted by MikeJaquish View Post
There is no information presented in the thread by the OP to lead to these conclusions.
There wasn't much information at all. Like jackmichigan said, anything is possible, so considering the OP did not mention a price, it sounds to me like maybe the buyer's agent was trying to get the seller's agent to agree to a higher commission before even bringing price into it.
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