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Old 09-11-2019, 09:43 PM
 
1,657 posts, read 2,397,132 times
Reputation: 1947

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Quote:
Originally Posted by Spokaneinvestor View Post
I don’t like gravity either but I work with it to my advantage. Earlier you said $85K, I guess inflation is high where you are to go from $85K to close to $100K in a matter of days
I'm including closing costs.
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Old 09-11-2019, 09:46 PM
 
1,657 posts, read 2,397,132 times
Reputation: 1947
Quote:
Originally Posted by BoBromhal View Post
that's a second round of transactions. I assume he's only counting his 2 purchases, not 1 or more sales.

It would be insightful to understand why he moved 2x in 48 months though
I moved when I left the military. Moved 4 years later for a job in a different state.
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Old 09-12-2019, 11:48 AM
 
Location: The Berk in Denver, CO USA
14,247 posts, read 20,765,481 times
Reputation: 23421
So, for all the heat in this thread, no one has explained how real estate agents make a living in countries with much lower agent costs.
I mean, all the estate agents in the UK (with its rates at approximately 1/4 of the USA) are not starving to death.
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Old 09-12-2019, 01:05 PM
 
Location: Cary, NC
33,996 posts, read 59,121,387 times
Reputation: 32905
Quote:
Originally Posted by davebarnes View Post
So, for all the heat in this thread, no one has explained how real estate agents make a living in countries with much lower agent costs.
I mean, all the estate agents in the UK (with its rates at approximately 1/4 of the USA) are not starving to death.



Uhhhh,,,,


You are in a USA-heavy forum, Dave.


Might be a good one to ask the Brits? http://www.city-data.com/forum/united-kingdom/
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Old 09-13-2019, 08:08 AM
 
Location: New Mexico U.S.A.
25,704 posts, read 42,065,622 times
Reputation: 29842
Quote:
Originally Posted by davebarnes View Post
https://www.economist.com/united-sta...such-a-rip-off

Why America’s real-estate brokers are such a rip-off
Selling a house in the United States is extremely expensive


"...believes the problem lies in the anti-competitive practices of the Multiple Listing Service (mls), through which nearly every broker in America lists and searches for homes, and the National Association of Realtors (nar), a trade association with 1.3m broker members in America, which regulates it."
Why the article is "such a rip-off". "Register to read this article in full"
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Old 09-13-2019, 08:14 AM
 
54 posts, read 13,534 times
Reputation: 71
Quote:
Originally Posted by Poncho_NM View Post
Why the article is "such a rip-off". "Register to read this article in full"
To be fair, The Economist is one of the most highly regarded publications throughout much of the Western world. It does cost money to read their publication, but it's because it's usually very high quality content.
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Old 09-13-2019, 06:37 PM
 
851 posts, read 391,944 times
Reputation: 1188
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 weren’t worth much. I will be sure and let them know.
You’re wrong. Buyer pays commissions. Yours truly a real estate agent
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Old 09-13-2019, 07:20 PM
 
119 posts, read 22,783 times
Reputation: 194
Quote:
Originally Posted by JPrzybylski07 View Post
You’re wrong. Buyer pays commissions. Yours truly a real estate agent
Yeah I am an agent (broker in WA parlance) and the seller pays the commission but you believe what you want. Given that anyone with pulse that can fog a mirror can be a broker/agent I take a “real estate agent” opinion as worthless. But you go!
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Old 09-14-2019, 01:41 AM
 
9,068 posts, read 8,284,306 times
Reputation: 19698
There is so much misinformation being thrown about on this thread.

Facts:

Agents only on the average earn 1.5% commission to sell or list the property, with the commission split 4 ways, 1.5% to the listing agent, and the same to his/her office, and the same for the selling agent and office.

According to Internal Revenue data I saw recently, the median income for Real Estate Agents, is $42,000, putting them 1/3 below the rest of the people in this country.

The first two years in the business, the average gross income is $19,000 per year.

Out of this they pay all costs such as taxes, Realtor Dues and fees, Their own medical care as they do not have medical plans, social security, Gasoline showing property and other car costs, costs of a professional wardrobe, and many other costs, so many agents would have made more money being a Barista at Starbucks.

About 80% of new agents fail out of the business as they cannot earn a living, and many spend quite a bit of time working, and never make even one sale, or have a listing that sells.

Sixty three percent of agents are women, with the typical Realtor a married home owner, and 53 years old who the family does not rely on the Realtor Income to live. The remaining men are brokers, commercial real estate specialists, farm and ranch brokers and agents, and the other bigger money sectors of the business for the most part.

Hard to sell non residential property, will have as high as a 10% commission, and the net to the agent will be 2.5%. Due to the difficulty of selling it, their net commission after all expenses and time involved will net them on an annual basis about the same per hour as the single family home sold for a personal residence.

80% all real estate is sold by 20% of the agents/brokers, with 80% of all agents selling only 20% of the real estate.

So the agent showing and selling them a home, or listing and watching over the sale to get to closing on property they listed, is not getting rich as so many on this thread seem to think.

Last edited by oldtrader; 09-14-2019 at 01:57 AM..
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Old 09-14-2019, 04:32 AM
 
Location: Cary, NC
33,996 posts, read 59,121,387 times
Reputation: 32905
Quote:
Originally Posted by oldtrader View Post
There is so much misinformation being thrown about on this thread.

Facts:

Agents only on the average earn 1.5% commission to sell or list the property, with the commission split 4 ways, 1.5% to the listing agent, and the same to his/her office, and the same for the selling agent and office.

According to Internal Revenue data I saw recently, the median income for Real Estate Agents, is $42,000, putting them 1/3 below the rest of the people in this country.

The first two years in the business, the average gross income is $19,000 per year.

Out of this they pay all costs such as taxes, Realtor Dues and fees, Their own medical care as they do not have medical plans, social security, Gasoline showing property and other car costs, costs of a professional wardrobe, and many other costs, so many agents would have made more money being a Barista at Starbucks.

About 80% of new agents fail out of the business as they cannot earn a living, and many spend quite a bit of time working, and never make even one sale, or have a listing that sells.

Sixty three percent of agents are women, with the typical Realtor a married home owner, and 53 years old who the family does not rely on the Realtor Income to live. The remaining men are brokers, commercial real estate specialists, farm and ranch brokers and agents, and the other bigger money sectors of the business for the most part.

Hard to sell non residential property, will have as high as a 10% commission, and the net to the agent will be 2.5%. Due to the difficulty of selling it, their net commission after all expenses and time involved will net them on an annual basis about the same per hour as the single family home sold for a personal residence.

80% all real estate is sold by 20% of the agents/brokers, with 80% of all agents selling only 20% of the real estate.

So the agent showing and selling them a home, or listing and watching over the sale to get to closing on property they listed, is not getting rich as so many on this thread seem to think.

If you are making a point that there is a lot of fat in some commissions due to unproductive, non-value-adding overhead, you are doing a heckuva job.
To that point, why would anyone spend money on a fat commission with the bulk of their funds going to faceless bloated entities that add no tangible value to their specific transaction?
Why does a consumer care that agents poor mouth about splits, income, and fat fees, as if the consumer has no alternative service available?

Did the IRS figures include the fact that there are a great many agents who hold license and/or membership for ancillary reasons, with no intent of ever engaging in brokerage?
I.e., tradespeople, flippers, appraisers, referral agents, retirees?
Did the IRS figures mention part-time dabblers?
There are a great many.

Licensing and holding a license, and even joining NAR and state and local boards of REALTORS is a cheap endeavor for a hobbyist, or for someone who is intrigued.
In light of those realities, these routinely presented "facts" about income and fees are laughable.

Last edited by MikeJaquish; 09-14-2019 at 04:41 AM..
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