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Old 03-11-2013, 06:57 PM
 
111 posts, read 167,839 times
Reputation: 35

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Welcome

This thread is aimed at California Consumers with concerns or curiosity of how Real Estate Agents go about working in their industry. It is not aimed at eliciting the opinions of agents (I have an open thread for that) although that will be inevitable. This thread is for the consumer.

I am a California Real Estate Broker aware of “the” economic anomaly of the Real Estate Brokerage Industry.

An explanation: An Economic anomaly means that an event does not follow the rules of economics, like for example, the better and less available a product is, the price tends to go up. That is an economic principle. If under the same circumstances, the price would go down, it would be an anomaly.

In real estate, the more the price of homes goes up, so does the commissions, only that the costs of selling homes are not increasing. Today, it is actually cheaper for an agent to to assist consumers in buying or selling homes, cheaper that it was just a few years back.

The ideal would be that those savings be passed to the consumers, but as we all know, the fees charged remain pretty much the same.

The United States Department of Justice calls this a “puzzle” and in 2005 began working on finding an explanation, but still, they have not found one. I believe I can pinpoint the event, the moment the real estate brokerage machine takes a wrong turn. I want to show that moment in this thread.

This is the third time I start a thread on this issue. You can find them by my city-data username bubbleboy or eventually I can direct readers to them. The first thread was opened here in the California forum but when the thread began to turn technical, it was moved to the Real Estate Professionals forum.

The problem is that this is not a problem that affects the pockets of Real Estate Agents, or that they need fixed, so there is little or no incentive for agents to follow the dialog. You be the judge of what happened. Go take a look click here.

So, I decided to move it back to this forum, leaving the technical talk on the other thread.

In this thread, I am looking for somebody, just like you, willing to play the role of a real estate buyer wanting to hire a real estate agent to buy a residential property in California.

I will be your agent and we will do all of the paperwork in the open, right in this thread.

My claim is that, as a buyer, you are entitled to money the seller offers to the buyer as an incentive to choose his property over other properties. Today, that incentive is captured by the agents fraudulently. In other words, the buyer is entitled to money he never receives and the seller looses the ability to use his money as an effective incentive.

I know it sounds incredible, but I can prove my point, using the standard paperwork and practices.

No tricks, no money savings scheme. This is not a "how to" save money by better negotiating a commission. Think of this as whistle blowing. I plan to correct an anomaly, something that is wrong and that the people doing it should stop doing.

If you decide to be that buyer, (and there can be more than one) you don’t need to know anything about how to buy a home or hire an agent. You also don’t need to be in California to do this.

Just show up here, at my make belief office, with make belief money (600K) and I will be your real estate agent.

Using current available resources and rules and regulations available to agents and the public, we will go through the process of hiring the agent, finding a property, making an offer, opening escrow, paying for the property and paying me, the agent.

The money you are entitled to receive can either be used for closing costs or you can dispose of it as you wish. That is how the system was designed to work and it is all in black and white. It is all legitimate and we will do this simply by following what the forms say, the forms your agents has to provide, only this time, we will do it in the open.

I’ll stop now so we can get a feel if this thread is going to work or not. We can start in a few days.

Please note and ignore the objections of those that claim to know that what I am talking about is wrong, but fail to present rebuttals to what I write.

Everything you read or write in this thread will belong to City-Data, according to the rules we all read before signing up. I won’t use any of it for any personal gain.

I believe that what is occurring in the Real Estate Brokerage Industry today is shameful.

My intention is to make this industry something I can practice without shame.

I'll be back Tuesday night.

Thank you for your support.

Bubble Boy

Last edited by bubbleboy; 03-11-2013 at 06:59 PM.. Reason: Typos
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Old 03-11-2013, 07:14 PM
 
Location: northern va
1,731 posts, read 2,669,082 times
Reputation: 1687
Quote:
Originally Posted by bubbleboy View Post

Please note and ignore the objections of those that claim to know that what I am talking about is wrong, but fail to present rebuttals to what I write.
plenty of rebuttals throughout your other thread...
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Old 03-11-2013, 07:31 PM
 
6,802 posts, read 6,105,500 times
Reputation: 1911
Was he finding the going a bit rough down in real estate, KWW?
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Old 03-11-2013, 07:41 PM
 
162 posts, read 354,475 times
Reputation: 142
I'm going to take the opposite. I just bought a new home (I'm in escrow right now) and while I understand the 6% my agent gets I believe my particular agent deserved it. She did a great job helping me through the process, shuttling me from listing to listing and helping me with the contracts etc. I have ZERO issue with her taking 6% from the seller. I feel she did a good job, got me the right place and earned her compensation

Just my 2 cents...
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Old 03-11-2013, 07:58 PM
 
Location: DFW - Coppell / Las Colinas
39,663 posts, read 45,138,319 times
Reputation: 51107
Quote:
Originally Posted by Outdoorfanatic1 View Post
I'm going to take the opposite. I just bought a new home (I'm in escrow right now) and while I understand the 6% my agent gets I believe my particular agent deserved it. She did a great job helping me through the process, shuttling me from listing to listing and helping me with the contracts etc. I have ZERO issue with her taking 6% from the seller. I feel she did a good job, got me the right place and earned her compensation

Just my 2 cents...
The 6% he refers to is in many cases much less than this as what a seller pays your Buyers agent. The Buyer agent only (usually) collects half the amount which they in most cases split with their broker. Rarely if seldom does one agent makes the the amount discussed. It is standard for the commission to be divided between the parties which can be the 2 Brokers and their 2 agents.
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Old 03-11-2013, 08:22 PM
 
86 posts, read 224,731 times
Reputation: 35
Quote:
Originally Posted by Outdoorfanatic1 View Post
I'm going to take the opposite. I just bought a new home (I'm in escrow right now) and while I understand the 6% my agent gets I believe my particular agent deserved it. She did a great job helping me through the process, shuttling me from listing to listing and helping me with the contracts etc. I have ZERO issue with her taking 6% from the seller. I feel she did a good job, got me the right place and earned her compensation

Just my 2 cents...
Your agent doesn't get 6% from the seller. She gets an amount the buyer's agent agrees to pay her, generally half of the total (6% perhaps) commission.

But I find your post amusing because I doubt many of us would find much of an "issue" with service we get for free - paid for by someone else. That's human nature.

But look at it from the other perspective. You obviously had the impression that your agent was getting the full 6% of the selling price of the house you purchased. So we'll change the compensation rules and the buyer now pays the commission. So now take that full dollar figure out of your own wallet.

Please be honest. She may have been very helpful, but would you have been so eager to write that check?
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Old 03-11-2013, 08:29 PM
 
Location: So California
8,707 posts, read 10,298,581 times
Reputation: 4785
Quote:
Originally Posted by Steamboat45 View Post
Your agent doesn't get 6% from the seller. She gets an amount the buyer's agent agrees to pay her, generally half of the total (6% perhaps) commission.

But I find your post amusing because I doubt many of us would find much of an "issue" with service we get for free - paid for by someone else. That's human nature.

But look at it from the other perspective. You obviously had the impression that your agent was getting the full 6% of the selling price of the house you purchased. So we'll change the compensation rules and the buyer now pays the commission. So now take that full dollar figure out of your own wallet.

Please be honest. She may have been very helpful, but would you have been so eager to write that check?
That's right.....nobody likes that side. Especially if the sale is break even or worse.
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Old 03-11-2013, 08:35 PM
 
162 posts, read 354,475 times
Reputation: 142
Quote:
Originally Posted by Steamboat45 View Post
Your agent doesn't get 6% from the seller. She gets an amount the buyer's agent agrees to pay her, generally half of the total (6% perhaps) commission.

But I find your post amusing because I doubt many of us would find much of an "issue" with service we get for free - paid for by someone else. That's human nature.

But look at it from the other perspective. You obviously had the impression that your agent was getting the full 6% of the selling price of the house you purchased. So we'll change the compensation rules and the buyer now pays the commission. So now take that full dollar figure out of your own wallet.

Please be honest. She may have been very helpful, but would you have been so eager to write that check?
Correction 3%. I'm of the mindset that you get what you pay for. Want to pay nothing? Sure you can do it but you are on your own because nobody (yes NOBODY) works for free...

Besides based on your argument I could have walked in there and asked for 3% off since no compensation is being paid OR ask for it to be paid to me (assuming that is legal) which is the SAME net result for the seller...
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Old 03-11-2013, 08:38 PM
 
Location: So Ca
24,301 posts, read 22,373,941 times
Reputation: 21479
Quote:
Originally Posted by Steamboat45 View Post
Your agent doesn't get 6% from the seller. She gets an amount the buyer's agent agrees to pay her, generally half of the total (6% perhaps) commission.
Maybe he meant that his agent was also the seller's agent. Our realtor got the full 6% commission on our purchase, since she was both the seller's agent and our agent.
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Old 03-11-2013, 09:23 PM
 
Location: On the "Left Coast", somewhere in "the Land of Fruits & Nuts"
8,864 posts, read 9,822,507 times
Reputation: 6659
Am no fan of the standard 6% commission, even if I'm not the seller. But the reality is that the property often ends up actually being sold by another agent... you know, someone who actually makes the effort to get folks to buy that particular property among many others competing on the MLS. And if you're an agent in the business of selling stuff, frankly which property are you more likely to pitch... the one with the standard higher commission, or one with say, a negotiated lower one (especially if you gotta split it)?
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