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Sellers who are experienced may take advantage of less experienced buyers.
Buyers who are experienced may take advantage of less experienced sellers.
There is no mandate to use a real estate agent. Use one if you would like, or don't.
Make your decision on your personal needs and don't project your wishes onto others.
As far as wanting to make practicing real estate your career, you should take classes in running a business, negotiating, contracts and marketing before you make a decision to condemn an industry.
To both posters quoted & OP, you don't know what you don't know. Sell 15-25 houses a year and then lets talk.
WOW! Where am i projecting my wishes onto others?
I stated, from my perspective, . . .and stated what I know. Of course, I know there is no mandate to use a real estate agent and I believe most people do. (so this comment was for what purpose?)
The OP asked:
I guess my main point of this whole thread is I wish they would make it considerably more difficult for people to get their real estate license. Also even with having my license and escrow back round I'm having hard time seeing the value of an agent. If you are a savvy business person even without a real estate back round then you can easily sell or buy a home flawlessly with just an attorney on the side and the title escrow company.
Again, based on my experience there are some situations when a realtor has more value and limited value. This is projecting my wishes onto others?
The main reason is that real estate transactions can get emotional. The Realtor is a buffer between the seller and the buyer. I've sold two houses using a Realtor and both times, the buyer was behaving irrationally toward the end. I was glad to have a Realtor approach them diplomatically.
I would agree with this perspective that its because of emotions but the commissions involved in selling your own property is ridiculous. 6% commission on a $500k home is $30,000! No realtor is worth $15k each. Especially when Zillow is doing most of the work on both ends. Home gets an mls, shows up on zillow. Buyer searches zillow 10x a day and finds said home. realtor meets them there to unlock the door. The rest is pretty simple paperwork and negotiating(minus a few sloppy deals) .
But listing yourself comes at a cost as well. Realtors will be reluctant to show your home unless they are forced to by their client. But not before they contact you and ask if you are willing to pay them.
In the event you do sell your home without a realtor, use a real estate lawyer for around $3k to get complete the paperwork.
So back to the original question... whats the whole point of realtors?
The OP has no sales experience and guessing the respondents to this OP are lay people. If you don't have real estate sales experience, there is no way you could understand the value of a Realtor.
The responses are just plain ignorant - saying Zillow does much of the work and the Realtor just shows up to unlock the door - and that the "paperwork" is simple. Only someone without experience would make such absurd, ignorant claims.
I would agree with this perspective that its because of emotions but the commissions involved in selling your own property is ridiculous. 6% commission on a $500k home is $30,000! No realtor is worth $15k each. Especially when Zillow is doing most of the work on both ends. Home gets an mls, shows up on zillow. Buyer searches zillow 10x a day and finds said home. realtor meets them there to unlock the door. The rest is pretty simple paperwork and negotiating(minus a few sloppy deals) .
But listing yourself comes at a cost as well. Realtors will be reluctant to show your home unless they are forced to by their client. But not before they contact you and ask if you are willing to pay them.
In the event you do sell your home without a realtor, use a real estate lawyer for around $3k to get complete the paperwork.
So back to the original question... whats the whole point of realtors?
1. No one pays 6% on a $500,000 house unless they need a financial guardian or they want to help their favorite niece who just got her license get started in business.
2. An agent who doesn't clarify payment up front is a threat to their buyer clients.
3. The facts provided in 1 and 2 support the value an experienced agent brings to the table, i.e., "the whole point."
The OP has no sales experience and guessing the respondents to this OP are lay people. If you don't have real estate sales experience, there is no way you could understand the value of a Realtor.
The responses are just plain ignorant - saying Zillow does much of the work and the Realtor just shows up to unlock the door - and that the "paperwork" is simple. Only someone without experience would make such absurd, ignorant claims.
Fair enough and, in response to the OP's question, you are welcome to present your side. But that doesn't discount the fact that certain sellers can successfully sell their properties without a realtor and I have yet to see a realtor to present that side. Just casting aspersions on laypeople's responses doesn't help your case or present a favorable impression.
Last edited by Maddie104; 01-02-2019 at 04:05 PM..
1. No one pays 6% on a $500,000 house unless they need a financial guardian or they want to help their favorite niece who just got her license get started in business.
2. An agent who doesn't clarify payment up front is a threat to their buyer clients.
3. The facts provided in 1 and 2 support the value an experienced agent brings to the table, i.e., "the whole point."
I’m calling BS on both bulletpoints.
The starting Standard rate is still 6% and most realtors want to act like they are losing money going to 5%, which is still too much. The rate doesn’t change depending on selling price, unless it’s a multimillion listing.
An agent that doesn’t get their desired commission is a threat to their buyer? Lol. Laughable. So you’re saying if you found your client their perfect house , it would be a threat to them unless you got paid?
And yes, Zillow does most of the heavy lifting. I found my last two houses on Zillow, called the realtor and went to look at it. Pretty simple if you ask me. Look, offer,inspect, renotiate if needed, and close. Pretty simple.
The starting Standard rate is still 6% and most realtors want to act like they are losing money going to 5%, which is still too much. The rate doesn’t change depending on selling price, unless it’s a multimillion listing.
An agent that doesn’t get their desired commission is a threat to their buyer? Lol. Laughable. So you’re saying if you found your client their perfect house , it would be a threat to them unless you got paid?
And yes, Zillow does most of the heavy lifting. I found my last two houses on Zillow, called the realtor and went to look at it. Pretty simple if you ask me. Look, offer,inspect, renotiate if needed, and close. Pretty simple.
1. That is only your uninformed opinion.
Tell me what county and state your $500,000 house is in, and by close of business tomorrow, I will be able to fix you up with a full-service agent who won't charge your completely mistaken "Standard rate."
2. Again, your lack of experience shows glaringly, or you would not refute fact.
Folks with any experience know that Buyers cannot directly finance a buyer's agent commission in their loan. They know that there is a wrinkle in the lending dynamics that allows them to finance the listing agent's fee, but not the buyers' agent's fee unless it is rolled in and paid through the sellers' proceeds.
I.e., Bill and Sue save up about $100,000 for a down payment on your $500,000 loveshack.
They have some reserve funds, and an agreement with a buyers agent that the agent will receive 2.4% of the purchase price as compensation.
After 4 months and viewing 22 houses, they find "The One." Near the top of their budget. $500,000, and they are willing to pay asking price.
But, due to either superstition and/or being lied to by trolls on the internet, the seller will not roll the buyers agent commission into the contract price.
Even if they agree to max out and raise the contract price to $512,000.
So they are left to pay the agent directly, even though they are willing to finance the buyers agency fees. The $12,000 hit to their pocket depletes their savings cushion, and UW balks at funding.
So, at this point Bill and Sue are down DD Fee, EMD, inspection fees, etc, and you are fine with that, because you think it is self-serving of an agent to clarify payment prior to contract?
The "whole point" of the agent is to help folks reach their goals and to minimize their financial risk.
Attitudes like that are a dime a dozen, and people just deserve better.
The starting Standard rate is still 6% and most realtors want to act like they are losing money going to 5%, which is still too much. The rate doesn’t change depending on selling price, unless it’s a multimillion listing.
An agent that doesn’t get their desired commission is a threat to their buyer? Lol. Laughable. So you’re saying if you found your client their perfect house , it would be a threat to them unless you got paid?
And yes, Zillow does most of the heavy lifting. I found my last two houses on Zillow, called the realtor and went to look at it. Pretty simple if you ask me. Look, offer,inspect, renotiate if needed, and close. Pretty simple.
Also be careful with Zillow. When I used it to sell my home myself, prominent realtor ads appeared next to my home photos with a box to contact realtor to see the property. Very misleading. A viewer had to scroll down to find my personal info. Zillow sells ad space to realtors and placement on listings that the realtor does not have.
Also be careful with Zillow. When I used it to sell my home myself, prominent realtor ads appeared next to my home photos with a box to contact realtor to see the property. Very misleading. A viewer had to scroll down to find my personal info. Zillow sells ad space to realtors and placement on listings that the realtor does not have.
Zillow would be out of business without REALTOR money.
What do you pay Zillow for using it?
"If you are not paying, you are the product."
Any consumer going to Z has to know they are entering a marketplace where they are for sale.
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