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Old 09-19-2019, 05:10 AM
 
3,927 posts, read 3,253,481 times
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Quote:
Originally Posted by JPrzybylski07 View Post
I understand you are saying commissions are a variable that appraisers donít account for, among other things like HOA dues, taxes, title insurance, etc. However in my opinion, actual market values have become slightly distorted overtime from sellers inflating their asking price to reflect costs they are ultimately legally responsible for. Sellers subconsciously have been passing the cost of commissions to the buyer and nobody stopped them because nobody noticed and now here we are with at least a 6% inflated market. Then again, can you really call something for sale inflated if someone is willing to pay for it?

At this point of time, it doesnít really matter because everyone seems fine and happy with our current status quo. Sellers though can start to negotiate commissions be split or paid entirely by buyers, after all everything is negotiable and there is a lot of smoke and mirrors involved in a real estate transaction.
Following your logic, which I agree with BTW, shouldn't buyer expect seller to discount the price by the amount of the seller's saved transaction costs or buyer's increased costs? After all, we are acknowledging that the market value includes those seller costs.
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Old 09-20-2019, 11:30 AM
 
853 posts, read 394,210 times
Reputation: 1198
Quote:
Originally Posted by 1insider View Post
Following your logic, which I agree with BTW, shouldn't buyer expect seller to discount the price by the amount of the seller's saved transaction costs or buyer's increased costs? After all, we are acknowledging that the market value includes those seller costs.
Agreed yes market value includes sellers cost. I wouldnít say buyer should expect a discount, I do think a buyer should negotiate after the negotiations, because commissions are calculated obviously on the sales price not listing price.
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Old 09-20-2019, 12:32 PM
 
Location: Olympia area (for now)
1,612 posts, read 598,724 times
Reputation: 3321
Interesting thread and it’s easy to see why people can become disgusted. Not all agents are the same, some deserve commissions, they earn it, others not. Good or bad, they all get paid the same.

I recently came across this website and was wondering if this type of service is the way of the future or a flash in the pan.

https://www.faira.com/
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Old 09-20-2019, 03:00 PM
 
Location: Cary, NC
34,028 posts, read 59,174,530 times
Reputation: 32957
Quote:
Originally Posted by Taz22 View Post
Interesting thread and it’s easy to see why people can become disgusted. Not all agents are the same, some deserve commissions, they earn it, others not. Good or bad, they all get paid the same.

I recently came across this website and was wondering if this type of service is the way of the future or a flash in the pan.

https://www.faira.com/

And.... one must register with Faira to read the Terms and Conditions. Hmmm... Gathering database, it would appear.

I also see that sellers must be aware of terms and contingencies before the offer is submitted. Odd.
https://faira.zendesk.com/hc/en-us/a...-for-my-buyer-
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Old 09-20-2019, 05:22 PM
 
Location: Olympia area (for now)
1,612 posts, read 598,724 times
Reputation: 3321
Quote:
Originally Posted by MikeJaquish View Post
And.... one must register with Faira to read the Terms and Conditions. Hmmm... Gathering database, it would appear.

I also see that sellers must be aware of terms and contingencies before the offer is submitted. Odd.
https://faira.zendesk.com/hc/en-us/a...-for-my-buyer-
Thanks, I didnít see that part. So far they are only in three states, but Iím more comfortable dealing with a realtor. Many people probably feel the same, so this type of business will take awhile to catch on, if it ever does.
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Old 09-20-2019, 05:25 PM
 
Location: Cary, NC
34,028 posts, read 59,174,530 times
Reputation: 32957
Quote:
Originally Posted by Taz22 View Post
Thanks, I didn’t see that part. So far they are only in three states, but I’m more comfortable dealing with a realtor. Many people probably feel the same, so this type of business will take awhile to catch on, if it ever does.

So many "disruptors" are really just another spoon in the soup, trying to take a slice of the pie, offering some convenience, but very little acumen or skill.
Glitz over substance.
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Old 09-21-2019, 12:16 PM
 
Location: Raleigh NC
9,990 posts, read 7,522,099 times
Reputation: 8599
Quote:
Originally Posted by Taz22 View Post
Thanks, I didnít see that part. So far they are only in three states, but Iím more comfortable dealing with a realtor. Many people probably feel the same, so this type of business will take awhile to catch on, if it ever does.
it appears, like so many other ... we'll call "fee for service" or "steep discount" brokers (a listing fee of 1% or less) ... that the "free"/low-cost is the bait to get you interested. Nobody can make money giving their stuff away, and this place claims they literally will get you on MLS for $0 to them.

And don't forget, in every MLS, there is still a co-op fee/Buyer's Agent fee due from the Seller.

Then if you look, they have some 0.5% "platform fee". It's nebulous how this is paid for, since they both say they charge buyers, and that it's included in the sales price (covered by seller).

But NOBODY can stay in business at 0.5% for maybe 30% of their business. Meaning, they can't have 800 completely free listings (they claim 800 sales total), sell 30% of those to online buyers paying 0.5%, and get 0.5% and make money. And 30% would be an insanely high figure. That's making $1K per transaction, IF the houses are all $700K.

I've been doing this 20 years, and I couldn't manage 240 closings a year, paying no one else and grossing $240K doing this:

Quote:
MLS listing

Professional photography

Market analysis

Transparency reports

Signage, keybox and flyers

Transaction management
that's 50 hours/week, giving zero service beyond paper-pushing/box-checking.

And then - if you choose 1% or "full fee" instead ... why would I spend my time on the free people?
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Old 09-21-2019, 02:34 PM
 
Location: Olympia area (for now)
1,612 posts, read 598,724 times
Reputation: 3321
Quote:
Originally Posted by MikeJaquish View Post
So many "disruptors" are really just another spoon in the soup, trying to take a slice of the pie, offering some convenience, but very little acumen or skill.
Glitz over substance.
True, Iíve been in insurance sales for a long while and even though many people are computer savvy and perfectly capable of shopping for what they want, a segment of the population will always want to talk with a real person.
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Old 09-21-2019, 03:05 PM
 
Location: Olympia area (for now)
1,612 posts, read 598,724 times
Reputation: 3321
Quote:
Originally Posted by BoBromhal View Post
it appears, like so many other ... we'll call "fee for service" or "steep discount" brokers (a listing fee of 1% or less) ... that the "free"/low-cost is the bait to get you interested. Nobody can make money giving their stuff away, and this place claims they literally will get you on MLS for $0 to them.

And don't forget, in every MLS, there is still a co-op fee/Buyer's Agent fee due from the Seller.

Then if you look, they have some 0.5% "platform fee". It's nebulous how this is paid for, since they both say they charge buyers, and that it's included in the sales price (covered by seller).

But NOBODY can stay in business at 0.5% for maybe 30% of their business. Meaning, they can't have 800 completely free listings (they claim 800 sales total), sell 30% of those to online buyers paying 0.5%, and get 0.5% and make money. And 30% would be an insanely high figure. That's making $1K per transaction, IF the houses are all $700K.

I've been doing this 20 years, and I couldn't manage 240 closings a year, paying no one else and grossing $240K doing this:



that's 50 hours/week, giving zero service beyond paper-pushing/box-checking.

And then - if you choose 1% or "full fee" instead ... why would I spend my time on the free people?
This company has a lot of hidden costs and is full of gimmicks, but it goes back to peopleís frustration with the poor performance of their agent. People are going to look for ways to shave off paying full commission, especially to an agent who hasnít done much for them. They will go looking and find sites like this.

Over time, the real estate industry will evolve and change. I think, there will be more a la carte services for those who want them. People will opt for more diy services and possibly a lower brokerís fee. Not everyone needs to be guided every step of the way by a full service agent. Zillow and Realtor make it easy to find homes and read about them yourself and paperwork is done with docu sign, which is better than spending an hour in an office initialing a huge stack of papers. There will always be people who are intimidated by the house buying/selling process, but others will be willing to do more legwork themselves in order to save money. Iím ok with paying commission to a good agent, like the one who gets top dollar for the house and makes the process easy. Agents who donít do much and still have their hands out for a commission check, are irritating. They are the ones who would make me look for a steep discount broker.
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Old Yesterday, 02:20 PM
 
18,974 posts, read 20,935,836 times
Reputation: 28071
Quote:
Originally Posted by 1insider View Post
Following your logic, which I agree with BTW, shouldn't buyer expect seller to discount the price by the amount of the seller's saved transaction costs or buyer's increased costs? After all, we are acknowledging that the market value includes those seller costs.
No the buyer shouldnít expect the seller to lower price by 6%. TMV is TMV regardless who is selling it. Or buy it at the negotiated price and there shouldnít be any discounts expected because there is no agent involved. If I were to sell a property FSBO and a buyer expected a 6% discount because Iím FSBO Iíll gladly show him the door. If Iím priced at market value take a hike.
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