Builder's incentives going to realtor and not buyer (Houston, Howe: sales, foreclosure) - Texas (TX) - Page 2 - City-Data Forum

structuralengineer1 · 08-18-2009, 09:21 PM

Quote:

Originally Posted by PFEdoc

Exactly! You guys are all right in your responses. Bottom line is bottom line and I only got a realtor involved because I did get some kickback but nothing like what they got for my referral to the builder...I offered the builder to not use a realtor at the beginning but didn't even know that realtors actually got a huge referral fee on top of their commission. Just a little crazy since I'm the buying and the money has to come from somewhere and now teh builder is out $10k more than I asked for originally w/ no one else involved.
Oh well! I may walk now since I am more offended!!!

nah i think the trick there is get an agent willing to split you the 3% they will get. many builders dont give you discount just because you are not going to use an agent.

westres1 · 08-18-2009, 09:30 PM

Quote:

Originally Posted by Topaz

But it IS our money. The cost for Realtors is built into most real estate transactions. I want Realtors to be able to feed and clothe their children, just not by being a Realtor. I want the entire system to be different.

Why? you want another job to go away....the way people dicredit Realtors and have such disdain for their job I guess we should just send the paper work over to India like everything else!

RoughRider · 08-18-2009, 09:38 PM

Quote:

Originally Posted by westres1

Why? you want another job to go away....the way people dicredit Realtors and have such disdain for their job I guess we should just send the paper work over to India like everything else!

The job doesn't need to go away, just change the services to a flat fee, not a percentage, stop telling us about all of the marketing they do and how much it costs, and make the MLS open to everyone. The Zillow approach was a good starting point.

PFEdoc · 08-19-2009, 12:01 AM

Yep! I am all for making a hard earned living! They should feed their children as we do with money we work for! That is the problem! Many want to do nothing for it and then expect it. Others...call it "representation" but really have no guts to protect and stand up for their buyers but want the easy money. However...notice I said some....because just as in any profession there has to be some good ones....finding one is pretty hard though. I have absolutely NO prob w/ what they get paid if they do the job w/ heart and soul.

westres1 · 08-19-2009, 12:41 PM

Quote:

Originally Posted by RoughRider

The job doesn't need to go away, just change the services to a flat fee, not a percentage, stop telling us about all of the marketing they do and how much it costs, and make the MLS open to everyone. The Zillow approach was a good starting point.

Zillow doesnt work in hot markets in areas such as 77024.

I can stop telling you how much it costs for marketing,gas,lunches,broker fees,mls fees,har fees,nar fees.....but I wont because most people do not know how much it costs to keep your license and have a broker. They dont know that the broker takes off the top sometimes HALF of the commission. You do the math on a $100,000 house the realtor makes 3% or 3 grand then pays the broker half down to $1500 then pay the IRS! for driving someone around for three months and going thru all the paperwork,negotiations,options,title company. That is not alot of $ and then on top of that you get a nice gift but still complain and want 1% of the original 3% sheesh!

PFEdoc · 08-19-2009, 11:13 PM

You must be good to do all that! You should get your full commission! I am all for people like you getting paid for doing your job right! I hope your collegues take some notes. Its people who do bare min. and want the lazy route w/ an attitude who give you good guys a bad rap...

Houston321 · 08-21-2009, 03:39 PM

The shame is, many clients could actually get a better deal...but the realtors are pushing the builder reps for BTSA's. They threaten to take their clients elsewhere unless they get a heavy bonus. I see this a lot and it's a shame, because the realtor should have their client's best interest in mind not their own pocket. The BTSA DOES affect the bottom line price of the home. Of course you will hear that it comes from a separate budget..etc, but it doesn't. All bonuses are factored into the bottom line of the home.

PFEdoc · 08-21-2009, 10:35 PM

What is BTSA? I am assuming it is some realtor referral incentives?

Dougishere2 · 08-22-2009, 09:22 AM

Quote:

Originally Posted by westres1

Zillow doesnt work in hot markets in areas such as 77024.

I can stop telling you how much it costs for marketing,gas,lunches,broker fees,mls fees,har fees,nar fees.....but I wont because most people do not know how much it costs to keep your license and have a broker. They dont know that the broker takes off the top sometimes HALF of the commission. You do the math on a $100,000 house the realtor makes 3% or 3 grand then pays the broker half down to $1500 then pay the IRS! for driving someone around for three months and going thru all the paperwork,negotiations,options,title company. That is not alot of $ and then on top of that you get a nice gift but still complain and want 1% of the original 3% sheesh!

It is just as bad on my side of the fence! I am a Mortgage Banker and I can't even compete in getting the builder business because the builder owns their own Mortgage Company which Lures the buyer to do business with their Mortgage Company by throwing in the Title Policy, or by paying some, or even all closing costs! They make sure that YOU the purchaser will not get this incentive IF you go outside and get your financing! In what I have seen you the consumer still have not learned! Nothing is Free in this world. You are paying for all this free stuff somewhere! Where? Usually in the intrest rate. Over the term you will pay Thousands and Thousands of dollars to save a few thousand dollars. You the consumer do not get the education in doing a purchase with the builders Mortgage Company because they are not about service, they play the numbers game. If you look at the forclosure Market, where do you see most of the forclosures? In the 1 to 5 year old homes. Who put those people in those homes? The Builders Mortgage Company! I educate my 1st time home buyers on where every dime goes.
As far as the Realestate agents Pay?? They do work hard for their money, they are worth every penny you pay them. The builder has on every home to sell, a Marketing Budget. This is where the money comes from for incentives to be paid out to realestate agents who bring them customers. Ultimatly that money does come from the Customer, it is in the price of the home!! You the Consumer either cares where your money goes and how much of it goes out, or you don't! Get educated and then things will change.

PFEdoc · 08-23-2009, 04:15 AM

Then, what do you suggest? First go to the buyers mortgage co. and then compare w/ mortagage broker outside of the builder? I thought you can't even really compare since its based on what the market is like when you close which is effected by when the home is done. What are your best solutions? What has everyone else done who may be in the situation of using the builder's mortgage co?
I have to admit that w/ our first build-out we used the builder's mortgage co...didn't think to use anyone else. Now...not the first time home buyer so more street savy so I was thinking of shopping around anyway!