Real Estate Agents Commission (fee, brokers, value, offers)
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I just listed our house and 6% is normal here. But unless you're in a hot market, there is reduced fee competition from online real estate so traditional realtors may negotiate. As soon as I asked, our realtor put in writing they'd take 5%, and reduce to 4.5% if they brought buyer and seller (me) to the transaction. Works for me.
For what this bit is worth, I recall reading a thread expressing frustration with certain states (NC being one of them) where you cannot purchase a new car (Tesla) directly from the manufacturer. New autos must be purchased through a dealership.
This can work to your advantage if your area has promotional offers such as rebates and incentives you would not have otherwise gotten if not making a dealership purchase. But typically this is only seen when several dealerships in a region need to move excess inventory.
It can also backfire in times of excess demand where there is a backlog of orders, and prices actually rise WHILE you're waiting in line after having paid your $5000 deposit.
Whether we are talking autos or homes, sometimes agency can help connect a seller with a buyer in a shorter time than both going about their merry way and waiting to bump into each other. In other cases, the seller-buyer relationship so adversarial that a third party is the only way to get them to reach agreement and close.
Pride has to be put aside when coming to negotiations. If you're willing to let a property that is a great fit slip away "on principle" of something that was said or done, you're cutting off your nose to spite your face.
Market the property yourself online and a pay a lawyer to handle the contractual part of it. There's really no reason to hire a real estate agent anymore.
Market the property yourself online and a pay a lawyer to handle the contractual part of it. There's really no reason to hire a real estate agent anymore.
You might think it is easy, but many folks don't have the time or resources to market their home effectively. I won't claim it can't be done, just saying it isn't as easy as you think.
I bought and sold my first house without a Realtor, and fortunately everything worked fine.
Market the property yourself online and a pay a lawyer to handle the contractual part of it. There's really no reason to hire a real estate agent anymore.
True,can't imagine what buyer doesn't look at Zillow.
Let's face it -- there aren't too many jobs out there where clients feel that their professional is woefully underpaid. :-) Doctors, lawyers, accountants, beauticians, teachers, painters, contractors, real estate agents, etc., etc.
It's pretty straightforward. I show a client what services I provide (it's a lengthy list). I also discuss the costs incurred for marketing their home, with no guarantee of recouping the cost. When they ask me for a discount, I pleasantly agree, and then ask them which of the services they would like me to eliminate.
Crickets . . .
The OP, apparently would have had the home to have taken 6 months to sell, so she felt she got her money's worth and the agent would have worked hard and long hours to earn very little per hour spent selling the property.
I on the other hand feel different, and want my agent to know how to move property in as little time as possible. An agent that has as much knowledge and experience to move my property as quick as possible. An old principal of real estate: The longer a property stays on the market, the lower the final sale price. A property that stays on the market will give the property a reputation of being overpriced, and buyers will more of a price discount. I want a quick sale at highest possible price.
I spent from 1972, until I finally retired, as an investment broker, handling real estate accounts, more like a stock broker, buying, selling, and doing tax deferred exchanges for a sable of high income investors over and over.
I often bought properties, and sold them through selling agents, and always paid a full commission.
My record for a fast sale, was a man came to me Friday, with a property,that was to be foreclosed by the VA on Monday. I went and saw it, and asked how much he wanted for me to buy it. He gave me a figure I could accept and bought it. I called someone I knew at the VA office to get payoff, and told them to send me the assumption papers and I or an investor client would sign them and she stopped the repo and sent me the papers. And rented to the sell month to month. I bought it as a principal without commission.
While the sellers were in my parking lot moving some things from the back seat to the trunk, I called a Doctor who was a client, and sold it to him on the telephone before the sellers left the parking lot. Papers arrived in Monday's mail. My wife prepared closing papers, Doctor too a break mid afternoon and signed them, and filled them by 4 p.m. The next VA called me and thanked me for solving the problem. Bought and sold in 1 1/2 hours. Closed in 4 days from first contact.
The sellers could not make payments, but paid every rental payment just before it was due. The kept the property in perfect condition. Best tenant ever.
A fast sale is a sign you have a top agent, who knows how to get a fast sale, at a fair to both sides price. But OP is not happy because of a top agent getting it sold fast, she thinks the agent was overpaid. She does not know how much more time, the agent will be spending right up to closing.
Inspection only turned up one thing and I'm the one that has totally handled this.
I guess I will assume the agent makes about $10000 of the 12000. But by no means will I congratulate her or thank her. Way to many times she has talked to me and said "you", rather than "we".
The agent is really only a 3rd party of the sell in this situation.
I also bought a house with this agent and she failed on many, many fronts in hind site. So the sooner this transaction is done, the better.
Your assumption is way off. In my brokerage I would get half of the $12K, and then pay a split to the brokerage based on my production for the year, plus a small transaction fee.
My expenses as an agent would come directly from that commission, meaning my desk fees, my MLS membership, and any self-marketing that I elected to do to help get your property sold such as a realtor event—not to mention the money I spent on realtor education (pre-, post- and continuing ed) and my experience to price your home correctly, take the pics, develop them, stage your house, help you with the disclosures, etc.
So no, I wouldn't make $10K on a $200K sale unless I was a dual agent—and that's a whole other ballgame in dealing with two sides instead of one.
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