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you understand that Redfin is a brokerage? That in . markets where they operate - and they're nowhere close to everywhere - they have a 1% or 1.5% listing fee. And whatever the co-op fee in said market is, yes?
So, if someone wants to assume Redfin is the way to go in their market. And commission is what everyone thinks it is - 6% (3% each side).
Then Redfin = 4-4.5%.
This highlights the haze created by CityData choosing to endorse Redfin, while other brokerages are barred from promotion.
There are so many people who just don't recognize the difference between a brokerage with licensee staffs, and agent-supported ad sites like Realtor.com, Movoto, Zillow, Trulia, and whoever.
I liked it in "the old days," when CD allowed no brokerage promotions.
I wonder how they will handle this in the future, as Zillow moves into brokerage.
I'm curious how they will handle iBuyer brokerages like OpenDoor, Offerpad, etc, when the Remax's, KWs, etc, are edging into iBuying.
you understand that Redfin is a brokerage? That in . markets where they operate - and they're nowhere close to everywhere - they have a 1% or 1.5% listing fee. And whatever the co-op fee in said market is, yes?
So, if someone wants to assume Redfin is the way to go in their market. And commission is what everyone thinks it is - 6% (3% each side).
Then Redfin = 4-4.5%.
A savings of 2% on $750,000 = $15,000. Could be more if you find your own buyer or get a buyer's agant to go for 2%.....?
Problem I see is the buyers will have an attorney and guess whos interest he is looking after.. It wont be yours. You will have to sign documents their lawyer has approved and friend you best understand every word in them.
You can also have a attorney. I have a property that would sell around 1.5-1.7 mil looking at 90,000-100,000 dollars in commission. There is no f’ing way they are doing 90,000-100,000+ dollars worth of work. There just isn’t.
Quote:
Originally Posted by Lbjen
Given that you are probably going to have to pay the 2.5-3% for the buyers agent, will the cost of potentially holding the home for another year exceed the additional 2.5-3% you think you’ll save by not listing it with a realtor yourself? You’re still going to have to pay taxes and other holding costs, even if the mortgage is paid off.
Assuming it’s gonna take a year. And if it does it does. You rent it out, wait till the market gets better. For all you know the house gains value in a year surpassing the cost of a realtor.
Quote:
Originally Posted by Brandon Hoffman
I agree with you, yet when the money is on the table the FSBO buckles almost every time.
Sure most will simply because they want to sell and they’re stressed they want it, the buyers the agents everyone to go away. Then you have FSBOs that flat out refuse to pay tens of thousands. For example above. If someone wants to buy a house that’s sod by a FSBO and the FSBO understands how to sell why pay tens of thousands for a agent.
The reason agents are used is because most buyers and sellers are irrational. If you found two rational people who understand and get what it takes to buy and sell, understand that there has to be give and take you’ll sell.
Like I said what would I do
First. Pull up all the sold comps for your area.
Second I would get a appraisal. That will tell me about what t would sell for. I don’t need all the emotional overpricing.
Third if I felt the need I would pay for a consultation with a agent to get my ducks in a row. If I’m overpriced nobody will call. So I drop the price. But I got a appraisal so I don’t overprice. The agents obviously sometimes don’t have any tactics other than drop the price. If I’m underpriced the phone won’t stop ringing. I can tell people bring me a offer. Now bring me your highest and best offer. I’m not afraid to say no or speak up for myself. I can offer a consultants fee to be negotiated etcif I needed someone to work with me if it means giving entry.
I may offer a set amount to a agent if they bring a buyer. That is if they actually have a buyer not just a bs tactic.
The overall paperwork and process of buying a house is the same wether it’s a 150,000 dollar or 1.5 million house. The biggest issue a lot of times is the buyer needing to be babied along because their credit job finance issues. That’s the buyers agent problem. The seller shouldn’t have to pay for the harder to qualify buyers.
Giving up tens of thousands of dollars for a home sale is beyond insane anymore.
While the “standard 6% commission” may still be around it’s going to get reduced. As houses and more importantly technology gets better the commission will go away. At some point imo structures will have a trade in like a car dealership.
I have one for sale now that I considered listing myself, but I really have no clue how to help people get approved for an fha loan, etc... realtors are experienced with that kind of thing.
You refer them to a mortgage broker that does all kinds of loans with various lenders.
You refer them to a mortgage broker that does all kinds of loans with various lenders.
If you’re buying a house I would hope the buyer is somewhat versed in the basics of the steps in buying a house. There is so much information in websites, videos and how to’s out there that if you don’t know it’s simply you’re too lazy to educate yourself. At that point YOU can pay a agent for walking you through the process.but buyers need to stop expecting sellers to pay for it all
If you’re buying a house I would hope the buyer is somewhat versed in the basics of the steps in buying a house. There is so much information in websites, videos and how to’s out there that if you don’t know it’s simply you’re too lazy to educate yourself. At that point YOU can pay a agent for walking you through the process.but buyers need to stop expecting sellers to pay for it all
For the house I’m selling most buyers will be first time buyers, and they don’t know anything about the process of buying a home.
In my particular case, I will be advertising the sale through neighbors word-of-mouth, and a Facebook page that is exclusive to our neighborhood. I expect most buyers will find us and then bring their broker to the showing. I see no reason to pay that particular agent more than 1%, if that......
OP, I did not read the entire thread but why not go with Redfin to list, I think they charge 1%? As a recent buyer of a FSBO home, who saved a ton of money by buying a FSBO home (because the sellers couldn't get what the home was worth) I don't think I would buy another FSBO home. What a pain to deal with the owners directly, who doesn't know what's customary in a home sale, who weren't getting guidance from an agent. Now I understand why agents do not like to show their clients FSBO properties. My agent had to do extra work to help the sale process move along.
After we moved in our new neighborhood, we saw a FSBO home that didn't sell for 2 weeks. They hired an agent who took new photos, up the price by 50k and sold the next weekend. If you get a good agent who provides complimentary services thru his/her brokerage firm, they will get earn that 3% commission through higher sale price and faster sale. My agent provided complimentary paint color consultation and complimentary staging consultation and professional photos for the home.
OP, I did not read the entire thread but why not go with Redfin to list, I think they charge 1%? As a recent buyer of a FSBO home, who saved a ton of money by buying a FSBO home (because the sellers couldn't get what the home was worth) I don't think I would buy another FSBO home. What a pain to deal with the owners directly, who doesn't know what's customary in a home sale, who weren't getting guidance from an agent. Now I understand why agents do not like to show their clients FSBO properties. My agent had to do extra work to help the sale process move along.
After we moved in our new neighborhood, we saw a FSBO home that didn't sell for 2 weeks. They hired an agent who took new photos, up the price by 50k and sold the next weekend. If you get a good agent who provides complimentary services thru his/her brokerage firm, they will get earn that 3% commission through higher sale price and faster sale. My agent provided complimentary paint color consultation and complimentary staging consultation and professional photos for the home.
Thank you....
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