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Old 04-29-2008, 12:08 PM
 
Location: Central Texas
19,851 posts, read 36,350,732 times
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I find it an interesting perspective on human nature that, given the choice, the sellers that you serve go for the commission in which you don't get paid for the work you've performed if the house doesn't sell rather than paying you for the work that you perform whether or not the house sells. Either way you're doing the work - wonder how many of those sellers would work under the same constraints?
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Old 04-29-2008, 12:24 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 18,515,694 times
Reputation: 6356
I couldn't agree with you more Silverfall. Nobody wants to pay for something without results and I'd be more than happy to bill people by the hour for my efforts. My attorney does. He charges $200 an hour, I'd be happy to charge $50 for the 60 hours a week I spend doing what I do, but like Silverfall, no one has taken me up on it yet.

As the owner of the company, I have invested in a large amount of infrastructure necessary to present property to the general public which an individual seller couldn't possibly justify in an attempt to sell their property. It costs me 60K per year just to keep the doors open on the real estate office and I think the public wants to see a real estate company with some stability (we've been working out of this office since 1987).

Sometimes we get lucky and a transaction sails through easily, sometimes I end up working for minimum wage (or less) when all is said and done. I have expertise developed over a long period of time that no seller should be required to have and lacking it, likely wouldn't be able to conclude their sale.

That's my take on it, thanks for asking the question.
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Old 04-29-2008, 12:26 PM
 
8,758 posts, read 8,629,154 times
Reputation: 1422
Quote:
Originally Posted by TexasHorseLady View Post
I find it an interesting perspective on human nature that, given the choice, the sellers that you serve go for the commission in which you don't get paid for the work you've performed if the house doesn't sell rather than paying you for the work that you perform whether or not the house sells. Either way you're doing the work - wonder how many of those sellers would work under the same constraints?


And with no benefits to speak of. People just don't realize the overhead we have.
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Old 04-29-2008, 01:17 PM
 
Location: Salem, OR
13,738 posts, read 31,524,987 times
Reputation: 12105
Quote:
Originally Posted by TexasHorseLady View Post
I find it an interesting perspective on human nature that, given the choice, the sellers that you serve go for the commission in which you don't get paid for the work you've performed if the house doesn't sell rather than paying you for the work that you perform whether or not the house sells. Either way you're doing the work - wonder how many of those sellers would work under the same constraints?
I always find this interesting too...The folks who take the risk and agree to pay me regardless are ALWAYS happy they did in the end, but I think the issue has to do with concerns of professionalism in the past.

It is really scary to commit to someone until they know you are competent.
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Old 04-29-2008, 02:20 PM
 
Location: San Antonio
4,149 posts, read 9,106,452 times
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All I know is that when I close deals for a seller, I've never had one tell me I made too much.

I've sold them in one day and they said I was worth every penny because I got it to sell so fast, and I've had them take a lot longer to sell, and I've had them tell me I was worth every penny because I worked so hard for so long.

A GOOD Realtor is worth every penny. If you had a bad experience, you should have interviewed more.
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Old 04-29-2008, 03:08 PM
 
Location: Salem, OR
13,738 posts, read 31,524,987 times
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Quote:
Originally Posted by jimj View Post
Rather than being ticked I'd love it if our agents had a menu of services and choices ranging from low$ to pamper with champagne and chocolates! This model leaves it up to the buyer of the service exactly how much they want to spend and get instead of the same 6% to all and different service to all as well.
Most of my listings are custom quotes. I walk into a house and then determine what I need to do to sell it. Some take more work than others...

Most markets have fee-for-service real estate agents in them. What is interesting about this model is that commissions are so ingrained in the consumer, that I have actually had potential clients question if it was LEGAL for me to charge hourly and flat rates. Those have been some of the most interesting conversations that I have had.

Honestly, most agents, I think would be happy to bill their clients out at an hourly rate, there just aren't a lot of takers.
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Old 04-30-2008, 09:22 AM
 
Location: Olympia
1,022 posts, read 3,583,792 times
Reputation: 828
Quote:
Originally Posted by bentlebee View Post
My question is how many realtors/brokers are giving to their clients what you descripe, I paid ^% and didn't receive all the things you descripe and IMO many other people didn't get it as well.

-I had to pay $395- to give the buyer a year warranty.

-I never got color advertisement in the newspaper or even a black and white add.

-I never received a color real estate advertisement

-I did receive a showcase at realtor.com but read in another blog that realtors/brokers get these in a kind of package if the list many homes and than get a discount for them.

-I did receive some feedback.

-I had a virtual tour but had to ask to take it over since it was so dark that you hardly couln't see anything. (By the way if you have a camera it doesn't cost that much, just some time and it is not that the realtor has to pay for a new camera for every lisitng, but I understand that time is money.

Still I have the same question why are the costs so high, since I pay 1,5% in Europe for my lisitng when it get sold. I even can list my home with more realtors at the same time, and guess what. There almost aren't any FSBO listings so the agents have way more work.
Bentlebee,

I'm sorry you didn't receive the services you had hoped for from your agent. Here's the problem with Realtors who offer the kind of services I offer: It's expensive! I can't afford to do all this marketing if the house ends up not selling, as I won't get paid in that event. Therefore I'm extremely diligent with my market analysis and pricing suggestion. I have my comps checked by two different colleagues, to be sure I come up with a realistic sales price. If a seller wants to sell their house outside my recommended price range, I won't take the listing. Sadly, when sellers interview several agents for the job of listing their home, they often make the selection not based on the Realtor's skills or marketing strategy, but based on who quotes the highest list price. Never mind that the market determines the final sales price, not the Realtor.

I'd like to point out that in Europe there is no Multiple Listing system. Only the listing agent can show the homes that are listed with the brokerage. Marketing is almost non-existent. There is no street signage, flyers, virtual tours, lock boxes, glossy real estate magazines etc... The brokerages pay no Realtor dues, MLS fees, etc...It is not uncommon for listings to be on the market for 6 months, or even years. Most European Realtors only list and show homes. Once the consumer chooses a house, they will have to go to a Notary to manage the transaction. These Notaries charge thousands of Euros for their contract services. It's an archaic, consumer adverse system.

Sandy
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Old 04-30-2008, 12:00 PM
 
Location: Chaos Central
1,122 posts, read 3,606,549 times
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Quote:
Originally Posted by surfingatwork View Post
4% and 5% is VERY common in massachusetts. My house is on the market and IMO my realtor has earned every penny of her commission and I don't have an offer (yet). She has helped me locate/interview landscapers (and when i had almost given up hope in finding someone that wasn't going to charge me an arm and a leg she offered to have her son landscape my yard), helped me clean out my koi pond, met with the mason when i couldn't be at the house and so many other little things if i continued to write this would be a book.
Exactly so on the RE percentages for MA.
My last agent earned every penny of her commission and then some. Like your agent, she went way above and beyond what I expected. A bargain no matter how you look at it.

The one I tried before her -- eh....not so much. You couldn't operate a solar calculator on the energy that one expended. Half-hearted attempts at advertising, showing and updates; just half-you-know-what work in general. I never met anybody who could talk so much and work so little. Promised everything and produced nothing. Not a bad person, mind you, just a disgrace to her profession.
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