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Old 10-31-2018, 08:40 AM
 
Location: Pixburgh
1,123 posts, read 1,078,280 times
Reputation: 1195

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In my market the big box brokers all charge a ~$500 'broker fee' to buyers and sellers.

I don't know every single model but I know most will hit the agent for a portion of this fee so either they charge it, or they pay it out of their comission.

We are talking the old school brokers, not the better models (for agents) like my current broker, where i can waive it or charge half what the agent across the table from me is, and actually pocket more.
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Old 10-31-2018, 09:44 AM
 
3,248 posts, read 2,771,146 times
Reputation: 6621
Life Pro Tip: If you are a consumer refuse to pay these additional fees. Your agent may protest but she's not going to lose a deal over a few hundred dollars. I lose respect for any agent that succumbs to his broker's greedy policy to ripoff his clients. I have seen brokerages whose contracts include a pre-printed "transaction fee" clause in the small print presumably to circumvent outright disclosure of the larceny while maintaining the appearance of disclosure.



Agents, either eat the fee if your broker insists on it or find a more honorable broker who doesn't rip you or your clients off.
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Old 10-31-2018, 01:33 PM
 
Location: Pixburgh
1,123 posts, read 1,078,280 times
Reputation: 1195
Quote:
Originally Posted by 1insider View Post
Life Pro Tip: If you are a consumer refuse to pay these additional fees. Your agent may protest but she's not going to lose a deal over a few hundred dollars. I lose respect for any agent that succumbs to his broker's greedy policy to ripoff his clients. I have seen brokerages whose contracts include a pre-printed "transaction fee" clause in the small print presumably to circumvent outright disclosure of the larceny while maintaining the appearance of disclosure.



Agents, either eat the fee if your broker insists on it or find a more honorable broker who doesn't rip you or your clients off.
Yup a lot of them here have it pre printed so it blends in better.

At my current brokerage I no longer have to charge it but 99% in this area do. The huge brokers here all do, its like one of them just said 10 years ago 'hey with all those big numbers no ones going to raise a stink over another $500' and next thing you know, everyone had it on there.



And to be honest the agents are in a bind. Just as an example an agent at 'Corprorate Blue Real Estate Services' is selling a 100k house(farily normal here)...this brokerage , after fees, is paying the newer agent less than 40%. So $1000 or so goes to the agent. If they DON"T charge this, it comes out of pocket (300 of it) and they are down to $700 bucks. You can't make a living that way.

I'm not going to get into the discussion on 'why would anyone work there' because 90% of our agents in this area work at 3 big brokers that are very similar to that..
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Old 11-01-2018, 02:18 PM
 
375 posts, read 178,267 times
Reputation: 586
Quote:
Originally Posted by littlebebe View Post
We are currently buying a house and I noticed on the Settlement Statement the seller is being charged 6% commission to their real estate agent. This percent is the norm in our area. However, under miscellaneous there is a 200.00 charge to the seller for Base Commission to be paid to the realtor. What is this charge?

I remember my realtor mentioning that some agents charge other fees above the 6% commission fee.
A "standard" 6% commission is a rip-off and most agents will gladly sell for 4.5 or 4% if you ask.
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Old 11-01-2018, 04:26 PM
 
Location: Columbia, SC
8,873 posts, read 17,523,219 times
Reputation: 6265
Quote:
Originally Posted by LHS79 View Post
A "standard" 6% commission is a rip-off and most agents will gladly sell for 4.5 or 4% if you ask.
No they won't and you can't say 6% is a ripoff. It may be a ripoff for the job some agents do. It may not be enough for some.

Heck, I have a $14,000 property listed right now. I wouldn't touch it if I was only getting 6%. So your statement is not only ludicrous but it's not even close to being accurate.

I guess it doesn't matter. Regardless of which side of the fence you're yelling from I can't recall to many statements involving "absolute truth's" that I consider to be accurate much less remotely rational.
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Old 11-02-2018, 10:37 AM
 
375 posts, read 178,267 times
Reputation: 586
Quote:
Originally Posted by Brandon Hoffman View Post
No they won't and you can't say 6% is a ripoff. It may be a ripoff for the job some agents do. It may not be enough for some.

Heck, I have a $14,000 property listed right now. I wouldn't touch it if I was only getting 6%. So your statement is not only ludicrous but it's not even close to being accurate.

I guess it doesn't matter. Regardless of which side of the fence you're yelling from I can't recall to many statements involving "absolute truth's" that I consider to be accurate much less remotely rational.
Enjoy the "standard 6%" commission while it lasts- times are a-changin'! (thank God)
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Old 11-02-2018, 11:14 AM
 
Location: Columbia, SC
8,873 posts, read 17,523,219 times
Reputation: 6265
Quote:
Originally Posted by LHS79 View Post
Enjoy the "standard 6%" commission while it lasts- times are a-changin'! (thank God)
You've never been forced to pay 6%. In fact, you've never had to pay anything.

Just an FYI, people have been saying what you've said at least going back to the 90s.
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Old 11-02-2018, 04:54 PM
 
Location: San Francisco Bay Area
4,219 posts, read 2,209,329 times
Reputation: 8204
Quote:
Originally Posted by Brandon Hoffman View Post
No they won't and you can't say 6% is a ripoff. It may be a ripoff for the job some agents do. It may not be enough for some.

Heck, I have a $14,000 property listed right now. I wouldn't touch it if I was only getting 6%. So your statement is not only ludicrous but it's not even close to being accurate.

I guess it doesn't matter. Regardless of which side of the fence you're yelling from I can't recall to many statements involving "absolute truth's" that I consider to be accurate much less remotely rational.
Just like the threads about tipping in restaurants, which has also customarily been done by percentage, I think the objection that most people have is to the actual dollar amount that they have to give up, and how it does not usually relate to the amount of work done.

A few months ago, million-dollar and multi-million-dollar houses were selling here like hotcakes, and all sales were overbids, many more than 20% over listed price. The houses did not sit on the market more than a week, usually. I don't know the details of the listing/commission agreements; however, I would consider any seller who may have forked over 5% of the sales price to the agents involved a fool.

On the other hand, I think there ought to be a minimum fee to the agent for work involved on a completed sale, no matter how inexpensive the property, or even a fee-for-service-rendered for representing low-priced properties.

I am not suggesting that flat fees are a better option, but maybe some sort of combination, with perhaps a floor and a ceiling in commission.
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Old 11-02-2018, 05:03 PM
 
Location: Austin
7,098 posts, read 17,009,543 times
Reputation: 9553
Why are you seeing the Seller's side of the closing statement. As the buyer, it's none of your business what is happening on the seller's side. Do you want your Buyer to see what you net when you sell your house as a Seller? Tell the title company you want separate closing statements and to not send your info to the buyer.
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Old 11-05-2018, 10:25 AM
 
Location: Columbia, SC
8,873 posts, read 17,523,219 times
Reputation: 6265
Quote:
Originally Posted by SFBayBoomer View Post
Just like the threads about tipping in restaurants, which has also customarily been done by percentage, I think the objection that most people have is to the actual dollar amount that they have to give up, and how it does not usually relate to the amount of work done.

A few months ago, million-dollar and multi-million-dollar houses were selling here like hotcakes, and all sales were overbids, many more than 20% over listed price. The houses did not sit on the market more than a week, usually. I don't know the details of the listing/commission agreements; however, I would consider any seller who may have forked over 5% of the sales price to the agents involved a fool.

On the other hand, I think there ought to be a minimum fee to the agent for work involved on a completed sale, no matter how inexpensive the property, or even a fee-for-service-rendered for representing low-priced properties.

I am not suggesting that flat fees are a better option, but maybe some sort of combination, with perhaps a floor and a ceiling in commission.
This is a very rational statement. Your locale and prices, certainly 5% is common but it's different in some markets. Our median price is around 185k and our most common rate is 6%. Twenty years ago it was 7%. For full time professional in my market, it would be harder to get by on 5%. It could be done if we could get rid of the part-timers and hobbyists because the professionals would have more volume to make up for the smaller commission per transaction. It would also be easier to set mins/maxes.

As per your suggestion for a minimum, it's up to each agent/company do determine what they'll accept. I do personally have a minimum. Some don't. Per the DOJ, we can't do that as an industry because it would be colluding to set commission rates. The DOJ wants commissions negotiable.
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