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I think realtor's should cut their commissions. Don't get me wrong,some of them really hussle and work for it, but most I have seen do not. 6% was a fair commission when homes were half the price as they were today (about 8 yrs ago). I think it should be a flat fee in a tiered structure.
If the public had access to the mls, who needs a realtor?
I think realtor's should cut their commissions. Don't get me wrong,some of them really hussle and work for it, but most I have seen do not. 6% was a fair commission when homes were half the price as they were today (about 8 yrs ago). I think it should be a flat fee in a tiered structure.
If the public had access to the mls, who needs a realtor?
1. My market has been flat for 10 years. So if price are still the same, should I get a raise?
2. The MLS is a tool for its members. They input, manage and control the data. It is not a public utility.
Fee-for-service companies exist all over the nation. This model has been around for decades.
Yep, and if it was really effective, the industry would've moved to that already.
If RE agents charged an hourly rate, many sellers (and ultimately, the buyers) would end up paying MORE than that 5-6% commission. Likewise, a low flat fee for listing, whether it sells or not ... how many sellers really commit to that?
People think it's easy ... well, buying that one house that was an "easy transaction" hardly represents the hours of shuffling paperwork and negotiating with other parties on agreements that all transactions entail to some extent.
Lets not get into the hair-ripping, rant-filled aspects when escrow screws something up, or the other party forgets something major 1 day before it's supposed to close, or the lender that said yes-yes-yes until a week before signing and now says no. Alas, the clients rarely see or understand that aspect ...
Offering financial incentives makes alot of sense because Buyers are NOT "one price fits all." Some Buyers are short on cash and could use money for closing costs. Others may benefit from a lower interest rate - Seller pays discount points at closing to Buydown the Buyer's interest rate. This can create more of an impact than a standard price reduction. When Sellers reduce their price by $8,000 it lowers a Potential Buyer's payment by only $42.95/month. When a Seller funds a temporary buydown on a $300,000 purchase, it lowers a Buyer's payment by $311.08 the first year and $160.39 the second year. The cost for the Seller is ~$5,600.
Coldwell is not taking advantage of its sellers. Coldwell is taking a pro-active approach to try to stablize this unstable real estate market. No one knows what the market is going to do after this remarkable tax credit saga has ended. The "3% of the purchase price, up to $8000" credit at closing or buyer bonus...is something the buyer usually asks for now and in any buyers market. The seller isn't raising the listing price. Agents and Coldwell Banker are not getting paid any more money from the sellers that are participating in the program. Sellers are getting additional advertising opportunities for agreeing to something they most likely would have been asked to do from a buyer at the time of an offer being written. So I think you should have agreed to participate! I believe we are past the deadline. So did you decide to participate or pass?
I imagine other real estate company will be offering other sorts of promotions after the Coldwell program starts May 1st.
Hmm, two new members arriving in a week just to post about this particular program just as the gov't "no realtors left behind" tax credit is expiring. Sounds like things are getting tough out there.
Not good for seller or buyer as 6% commission plus $8k will be tacked on to list price of house. Seller will have an overpriced house and the buyer would feel they are actually getting a credit/discount, but are actually paying more for the house in this sales gimmick as opposed to the real tax credit that is about to expire, go figure.
If this is such a great program and CB really wants to help the economy, why aren't they kicking in a percentage from their own pockets? Nice of them to ask us seller's to kick in another 3% on top of our already incredibly low listing prices. Seems to me that everyone except for the seller stands to gain from this. Remember we seller's are already taking a big hit because of this economy.
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