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Old 09-10-2019, 08:07 AM
 
3,909 posts, read 3,242,698 times
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Man, the word commission is such a trigger around here. Please continue.
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Old 09-10-2019, 08:07 AM
 
Location: Raleigh NC
9,953 posts, read 7,499,106 times
Reputation: 8567
Quote:
Originally Posted by Pyramidsurf View Post
So that means the buyer is paying it.

You might have a leg to stand on if commissions were an entirely separate transaction outside of closing. However, it is not. Commissions and closing costs are skimmed right off the top of the buyers money and go into the agents pockets.
agents don't get the closing costs. If there's a "transaction tax" - be it like a sales tax, an excise tax, etc charged to the seller - you feel the Buyer pays that as well?

If so, then why not legally shift all the burden onto the Buyer - reflect it on the HUD/CD?
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Old 09-10-2019, 08:39 AM
 
Location: Raleigh NC
9,953 posts, read 7,499,106 times
Reputation: 8567
Quote:
Originally Posted by Pyramidsurf View Post
If you took finance or economics classes at the college level then you should ask for a refund. No competent professor would ever claim that the seller is paying for the commissions in a transaction.
let's say it is a short sale.

You pay $100K for a house. The Bank is owed $100K, and then there's $10K of commission and other closing costs.

Who's paying the $10K? The Seller is.
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Old 09-10-2019, 08:42 AM
 
Location: Raleigh NC
9,953 posts, read 7,499,106 times
Reputation: 8567
Quote:
Originally Posted by Pyramidsurf View Post
If the MLS went away you would see a change in market prices.

Try this. Learn how markets work and how anti-competitive practices affect market prices. Please report back on your results.
so if all we had was FSBO's, the prices would drop ... how much?
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Old 09-10-2019, 09:30 AM
 
Location: Texas
43,814 posts, read 53,363,441 times
Reputation: 71662
How we bought a home (and pretty much everyone else we know did in the last 10 years):

Listing agent staged, took pictures, put online, and stuck a sign outside.
We drove by and then found house on internet. We were cheezed bc our buyer's agent didn't even tell us about it.
Buyer's agent made appointment
and unlocked door.
We said, "Yup. We like it."
Wrote contract. One back and forth.
House sold in a week.

For this they got $50,000 in commission?!!

That's total crap.

Of course everyone should be adequately compensated, but a fixed % regardless of price is stupid.
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Old 09-10-2019, 10:19 AM
 
1,657 posts, read 2,396,396 times
Reputation: 1947
Quote:
Originally Posted by stan4 View Post
How we bought a home (and pretty much everyone else we know did in the last 10 years):

Listing agent staged, took pictures, put online, and stuck a sign outside.
We drove by and then found house on internet. We were cheezed bc our buyer's agent didn't even tell us about it.
Buyer's agent made appointment
and unlocked door.
We said, "Yup. We like it."
Wrote contract. One back and forth.
House sold in a week.

For this they got $50,000 in commission?!!

That's total crap.

Of course everyone should be adequately compensated, but a fixed % regardless of price is stupid.
According to people in this forum, the seller paid the commission so you shouldn't be concerned it was $50K. It was "free".
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Old 09-10-2019, 10:24 AM
 
1,657 posts, read 2,396,396 times
Reputation: 1947
Quote:
Originally Posted by BoBromhal View Post
agents don't get the closing costs. If there's a "transaction tax" - be it like a sales tax, an excise tax, etc charged to the seller - you feel the Buyer pays that as well?

If so, then why not legally shift all the burden onto the Buyer - reflect it on the HUD/CD?
The whole closing costs game is a sham designed to separate more money from the buyers pockets and feed the real estate conglomerate.

Quote:
Originally Posted by BoBromhal View Post
let's say it is a short sale.

You pay $100K for a house. The Bank is owed $100K, and then there's $10K of commission and other closing costs.

Who's paying the $10K? The Seller is.
Actually, the seller is coughing up money to clear the mortgage the bank owns.

Quote:
Originally Posted by BoBromhal View Post
so if all we had was FSBO's, the prices would drop ... how much?
There would be significant shift in the market and an increase in transactions once people realize they could buy and sell real estate without tens of thousands of dollars in fees being siphoned to the real estate industry.
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Old 09-10-2019, 10:31 AM
 
1,657 posts, read 2,396,396 times
Reputation: 1947
Quote:
Originally Posted by Spokaneinvestor View Post
Nope, you surmise wrong. I buy at market price - wherever that market price is - and then put tenants in them. I sell a few and buy a few via 1031 exchanges to defer gains. As long as I get my 6 cap net of expenses and my tax depreciation, I am happy. Never thought I was a financial genius except for the paying with cash and never financing part. Took some genius to amass the capital to get started but that was software development genius not financial.
More fast talking nonsense.

Tell us, what economic and financial education do you have besides reading investing forums?
Quote:
A HUD-1 is a form of a balance sheet. Maybe not the balance sheets you are used to using your crayons to complete but a balance sheet none the less. I read the same article you did but I was able to comprehend the argument which you obviously havenít. I donít think you will find a listing agent that would state that the buyer pays their commission but I would love it if you could. The MLS *may* have some anti-competitive practices but setting broker commissions isnít one of them.
Its clear you have no idea what a balance sheet is or how it works. A HUD-1 is a settlement statement. Its not even close the to the same thing.

Here, is City-data MikeJaquish good enough? He seems to be a well respected agent on these forums. He clearly states the buyer pays the commission:

http://www.city-data.com/forum/50767233-post300.html

Quote:
What you are failing to understand is that market value is just that market value. Any commission comes out of market value so the seller is paying the commission by taking a loss on market value. If one accepts your argument that the buyer pays the commission, then the real estate market should be such that the buyer makes an offer and also decides how much commission they want to pay to close the deal. And, furthering that argument, if a seller doesnít use an agent, then the savings on commission should go to the buyer since they are paying the commission. Nope, not the way it works. The only way your argument holds any water is if you say well the market is inflated by x% to account for costs of sale - maybe then.
What your failing to understand is the current market value is reflected to account for extremely high real estate costs.
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Old 09-10-2019, 12:19 PM
 
119 posts, read 22,783 times
Reputation: 194
Quote:
Originally Posted by Pyramidsurf View Post
More fast talking nonsense.

Tell us, what economic and financial education do you have besides reading investing forums?

Its clear you have no idea what a balance sheet is or how it works. A HUD-1 is a settlement statement. Its not even close the to the same thing.

Here, is City-data MikeJaquish good enough? He seems to be a well respected agent on these forums. He clearly states the buyer pays the commission:

http://www.city-data.com/forum/50767233-post300.html


What your failing to understand is the current market value is reflected to account for extremely high real estate costs.
I will let you have the last word. I tired of arguing with simpletons years ago. I guess those Econ classes at MIT Sloan that I took while completing my EECS degrees werenít worth much. I will be sure and let them know.
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Old 09-10-2019, 12:57 PM
 
1,657 posts, read 2,396,396 times
Reputation: 1947
Quote:
Originally Posted by Spokaneinvestor View Post
I will let you have the last word. I tired of arguing with simpletons years ago. I guess those Econ classes at MIT Sloan that I took while completing my EECS degrees werenít worth much. I will be sure and let them know.
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