Why do realtors make so much? (brokers, attorneys, houses)

[MikePRU]

Originally Posted by simplexsimon

Are the lower tier services heavily advertised? Never really heard of them...it would help reduce number of complaints...or not.

They're all over the internet. They usually masquerade as FSBO websites although from a strict legal standpoint you're not a FSBO if you have a contract with an agent. It doesn't matter that the agent has only agreed to provide you a limited number of services. You still have an agent.

I've definitely seen complaints over on the C-D real estate sub-forums about these limited service agents. Those complaints had more to do with erroneous expectations than anything. Those folks complained because they paid Yugo money and thought they were getting a Rolls Royce. They didn't understand what they were actually buying.

At the end of the day, there are different levels of service available to meet different folks' level of need. While each agent sets their own pricing, generally speaking you can expect to get lower levels of service the lower the fee although by no means is a higher fee a guarantee that you're hiring a better agent.

[rent-a-swag]

I'm not a realtor, but I have sold several houses with and several houses without a realtor. To answer your question, not necessarily. Theoretically, you could have a house sell for 100k and it might be more work than a house that sells for 300k and vice versa. Each sale is uniquely different.

Does the waiter who serves a meal for $50 have more work to do than the waiter who serves a meal for $15? Not necessarily. Each waiter may provide the same service and make 20% each time, but obviously the tip on the $50 meal will be greater. You still tipped them 20%.

In real estate standard commission is 2-3%. In the future try and negotiate the commission percentage if you feel the realtor is getting too much. Some realtors may allow you to do this and some may not.

You could also try and sell the house yourself and not pay a commission.

[mdovell]

^^^that reminds me does everyone tip on takeout or just me?

[MikePRU]

Originally Posted by mdovell

^^^that reminds me does everyone tip on takeout or just me?

I think the larger question is . . . are you supposed to tip when you pick up at curbside???

[matrix5k]

Originally Posted by mdovell

^^^that reminds me does everyone tip on takeout or just me?

No, what are we tipping for if we are picking up ourselves? They put the food in a bag and throw in some plasticware. That's the same thing they do at McDonald's - do you tip there too? If you dine in at Wendy's, they will bring the tray of food to your table - do you tip at Wendy's? Also, if you order stuff for online pickup at Wal-Mart, Target, Home Depot etc do you tip them?

[mdovell]

Generally I order online not at stores.

[MikePRU]

Originally Posted by mdovell

Generally I order online not at stores.

Sometimes I order online but pickup in the store.

[stevepumpkinman]

Originally Posted by matrix5k

So a 700k agent deserves twice the commission in case the seller tries to sue them? You're reaching here. Why don't you just admit that selling a 700k house is the same amount of work as a 350k house?

I imagine a 700k house is harder to sell, therefore the commissions require a longer period on the market and more work, and you will get more attention from the realtor for that money I imagine, than if you are shopping for a small fish like a 300k house. Realtors just want to sell ANYTHING small or large, and larger is better.

[matrix5k]

Originally Posted by stevepumpkinman

I imagine a 700k house is harder to sell, therefore the commissions require a longer period on the market and more work, and you will get more attention from the realtor for that money I imagine, than if you are shopping for a small fish like a 300k house. Realtors just want to sell ANYTHING small or large, and larger is better.

Depends on the area. Many towns inside I-95 have median house prices close to $1mil. A tear down for $450k is the norm. You can't even get a plot of land for $300k.

[Huckleberry3911948]

10% makes gobs of money the rest starve