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True. Successful realtors are hardworking. Effort pays.
The past two months have run a little long, so I hope you will not mind the following humor:
When I saw your first post:
Quote:
Originally Posted by Essequamvideri
Thanks to all the realtors and relators for reassuring us that you are needed. I didn't have a doubt you would take an opportunity to make sure we all know you're needed to navigate the home buying and selling process. Always a buyers market when you sell and sellers market when you buy - right?
All I could think of, was you using psychology on a real estate agent (in a humorous way, to your advantage):
"This commission that you didn't earn - where did you get the idea that you were entitled to a commission?"
"Did you expect this payment on the basis of a fear?"
"Did you expect this payment on the basis of misinformation?"
"Do you have a study that shows a "cause and effect" relationship between the services that you provided, and my well being?"
"Where did the idea of you being recompensed come from?"
LOL!
(As I wrote all of this out, I might use this tactic on the next large purchase that I make )
I only need a realtor to open the door. Not sure why that’s worth a 6% commission.
And who will get you in that door, and who will write that offer, Who will organize closing, inspections, relay between you and the seller, who will talk with lenders for you? Most importantly who spent several weeks in classes and spent thousands of dollars going into business to be able to open that door for you.... Lets not underestimate the value and information a GOOD Realtor can offer. could you do some of that footwork on your own? possibly some of it. But a GOOD Agent will be there every step of the way and prove their worth. Realtors have access to so much information the rest of us do not. They also spend a lot of time working on your behalf and yes... gasp.. ... earn a paycheck for it. 6% no. each brokerage earns 3% and the agent generally gets between 50 and 70% of that before they(hopefully) pay taxes. So ask yourself... is it ok to make thousand dollars for about 150 hours worth of work..... Because thats about what they average per sale. I used to think the same thing. we have moved 14 times and bought/sold homes every time except once. It only took one time without using an agent to change my thinking. There are programs out theree that offer discounted agents on both sides. Buyers agents will offer rebates back to you ass closing assistance, but it is like the old adage goes.... You get....What you pay for, and it isnt like you are writing them the check anyway. Sellers dont usually discount the home to offset for you NOT using an agent either. Especially new home builders.
Why a commission? Is it incrementally harder to open the door on more expensive homes? Do they need more “weeks” of training? Are the contracts harder to understand? Does it take longer to enter it in the MLS?
Realtors used to have to look through a book of listings (work) but now properties are all on the internet and viewable by anyone. Most buyers find property on their own and only call/need a realtor to open the door.
Role of a "Realtor" is a dying profession, especially if you are the seller. I took my own pictures and listed my 650k home for Sale by Owner and sold home is 28 days. As the seller all I had to do was obtain the Certificate of Occupancy. I am retired so I personally showed the home, answered any specific homes and we sat down at Dining Room table to discuss sale price wit the buyers. Piece of cake and saved 6.0% of 650k commission.....
Role of a "Realtor" is a dying profession, especially if you are the seller. I took my own pictures and listed my 650k home for Sale by Owner and sold home is 28 days. As the seller all I had to do was obtain the Certificate of Occupancy. I am retired so I personally showed the home, answered any specific homes and we sat down at Dining Room table to discuss sale price wit the buyers. Piece of cake and saved 6.0% of 650k commission.....
I agree, in today's technology agents are charging way too much for the work to be done.
A market analysis for the area could be made by a knowledgeable person after couple of hours of internet search.
In some cases both seller and buyer could depend on realtors:
- purchasing/selling remotely
- no time to show and no knowledge on negotiation
- no time on dealing with banks, attorney, inspections, handymen, etc
One obvious issue for people selling with no agent it is that many remote buyers depend on agent feedback and an agent would not try to purchase a house where he gets no commission for it.
Also there are buyers who prefer to not deal with home owner - keep things strictly professional with no personal feelings
So by selling private, sellers do expose themselves to only percentage of available buyers.
Of course, a well priced property goes fast with or without agent help.
And who will get you in that door, and who will write that offer, Who will organize closing, inspections, relay between you and the seller, who will talk with lenders for you? Most importantly who spent several weeks in classes and spent thousands of dollars going into business to be able to open that door for you.... Lets not underestimate the value and information a GOOD Realtor can offer. could you do some of that footwork on your own? possibly some of it. But a GOOD Agent will be there every step of the way and prove their worth. Realtors have access to so much information the rest of us do not. They also spend a lot of time working on your behalf and yes... gasp.. ... earn a paycheck for it. 6% no. each brokerage earns 3% and the agent generally gets between 50 and 70% of that before they(hopefully) pay taxes. So ask yourself... is it ok to make thousand dollars for about 150 hours worth of work..... Because thats about what they average per sale. I used to think the same thing. we have moved 14 times and bought/sold homes every time except once. It only took one time without using an agent to change my thinking. There are programs out theree that offer discounted agents on both sides. Buyers agents will offer rebates back to you ass closing assistance, but it is like the old adage goes.... You get....What you pay for, and it isnt like you are writing them the check anyway. Sellers dont usually discount the home to offset for you NOT using an agent either. Especially new home builders.
Thank you rtloucks. You are exactly right. After the brokerage we affiliate with take their fees and share and after taxes, we aren't left with a huge salary, unless someone is lucky enough to sell a $1,000,000 home.
(Not me, not even close) People are under the impression that realtors make a lot of money. It's false unless they are mega stars and when they get that busy I wonder how they can possibly give everyone the service they should have.
Why a commission? Is it incrementally harder to open the door on more expensive homes? Do they need more “weeks” of training? Are the contracts harder to understand? Does it take longer to enter it in the MLS?
Realtors used to have to look through a book of listings (work) but now properties are all on the internet and viewable by anyone. Most buyers find property on their own and only call/need a realtor to open the door.
So .... i will go ahead and answer yes to all of your questions. It actually does require much more research and training to deal with high priced homes. That is the exact reason that most brokerages have executive teams that deal exclusively with "Luxury Listings" Look, im not here to tell anyone they cant have the same opinion. If you fee having a realtor is a waste of money, then dont use one. But dont complain when struggles come up. Dont complain if you end up in court for not disclosing something you thought you were covered on. Agent take the responsibility of accuracy. So it is sort of a safety net if you will. They act as fact checkers. SO if you screw up your own listing or miss something on a purchase contract then tough ***** as my dad used to say. BUt if something is missed by an agent, then it is the problem of the broker.
More expensive homes do require more extensive research and diligence though. You will never see a new agent get that million dollar listing. It will get referred to a top producing agent that specializes in those listings.
As far as things like photography etc. Sure. I have seen realtors that use great professional photographers and then there are time that even I feel like my pictures were better than the ones taken by the agents photographer (sister actually) so believe me, i have seen it all. Like i mentioned. 14 relocation 15 homes bought and 14 homes sold. Seen it all. Tried it all and will continue to use an agent.
remeber, commisions are negotiable. And usually when the property price gets to a certain point it will get discounted or become a flat fee. If you dont negotiate, then find a new agent that will work with your demands They are out there..
Im not sure it this is allowed so forgive me if it is not. But i have been using a service called Upnest lately. I have no affiliation with them. I am just a customer. But you can request bids from agents. And interview and pick whoever you want. We have received bids averaging 4.5% total commission when we sell versus 6 and on the buying side we have been averaging 1% rebate. SO. It makes it a more affordable process. WE got bids from agents with all the top firms. Remax KW Century 21 etc. So there are option.
main reason very few care about details (upgrades, repairs) is that there are only 3 main things that really matter when selling/buying:
1. location
2. location
3. location
Many years ago when we sold our second home I was beyond frustrated when an agent (most known in the area) came in my home just to talk list price, had no interest to see the house.
He said that he knew prices for similar homes sold in my neighborhood and needed no more info to sell my house, it is about location and nothing more.
At the time I almost threw him out and chose another agent who thought our house was worth a lot more than what the "famous" agent told us.
Couple of months later I came to sell the house to what the "famous" agent told me in the first 5 minutes.
Okay. If what you are saying is true, I think I see the problem. If a house is in the wrong location location location, then why did the realtor bring a prospective buyer to my house house house? Didn't anyone look at map map map?
You make it sound as if buyers will buy a cardboard box to live in if it's in the right location location location.
Agreed, there are those for whom zip code is more important than quality, people who spend their inheritances on a down payment on a gorgeous house in an uber-expensive neighborhood and sit on lawn and patio furniture inside.
Most people, I am sure ARE interested in quality, features, and history of maintenance, even in older established neighborhoods. If I were interested in buying another house to live in (spare me), I'd want to know as much about it as possible: from soil stability and foundation to the roof and gutters. Most buyers would be interested in these things if they knew about them, regardless of the location location location.
And another thing: realtors calling and saying that they're going to show the house but never arrive or call to say that they've canceled.
The last time I sold a house that I lived in (not one of my rentals), realtors called to say that they were going to show the house. I suspected that most of these last-minute evacuations were unnecessary, so I stayed while the family made a mad dash down the street. Nobody showed.
What's up with that?
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No Shows
