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Old 01-03-2012, 07:46 PM
 
8,597 posts, read 9,835,247 times
Reputation: 7589

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Quote:
Originally Posted by S. Chris Webb View Post
"Sure there is. Generally speaking, RE fees are between 6-7%. That's "normal" / typical."

May I ask what real estate school or government agency is spreading that, or are you going from what you hear on the street?Some agents will work for 5%. Some for 3%. Some for a flat commission of $x.Some as little as 1%. But you often get what you pay for. By federal law, there is no "industry standard".There is also becoming more and more of a spread on listings as to what is offered as a standard co-broke in the MLS.
Read my other post. Go pull up a histogram on the total paid percentage on residential sales. There sure are a lot of agents charging 6-7%. Chris, I hope we can agree on this simple point. Just because someone charges 1% and another wants 20% doesn't change the fact that "typical" is around 6-7%.


Quote:
Originally Posted by S. Chris Webb View Post

"Driving people around" is not what good agents do to earn their living. Poring daily through new MLS listings, tracking comps in tax records, ensuring the buyer/seller is not getting ripped off, helping them determine a reasonable offer/selling price, negotiating the offer with the seller, writing up a fair and legal contract, running to the property multiple times to handle utility hook-ups, appraisals, inspections, repairs, following through the escrow, tracking down HOA info, figuring out how the funds are to be wired, following through with the loan requirements, etc. etc. is what agents do. When you have dual agency it's a whole different ballgame with double the people and vendors to deal with, and double the emails and phone calls. And 10 times the liability at stake. It never ceases to amaze me that so many people think all real estate agents do is drive to a few properties and open a few doors, and the deal just falls into place once a buyer likes a house. While that is what appears to happen on HGTV shows, it is not reality.
Poor choice of words on my part ("driving her around"). But you rambled off 30 different things that makeitagreatday didn't need. It sounds like she is buying a nice spot. So if it's $400K and you got an extra point ($4K) to do the paperwork for the buyer, are you saying that's double the work versus her needing your help in finding a property? OF COURSE NOT! FWIW, I'm sure I don't have to tell you how long it can take for one aspect of the transaction (days on end driving people around). That was my only initial point. THE RE agent didn't have to find her a house and that is normally a major chunk of time. My indecisive Sister-in-law for instance just fried up an agents time looking (and looking). We are talking a dozen days of windshield time excluding the rest of it. That agent lost money on Sister-In-Law; she was a "time-sink" even though she bought.

I don't know if you remember but I said I agree with you; it's not "double dipping". On average, it's certainly not a career that is "overpaid". We agree.

Quote:
Originally Posted by S. Chris Webb View Post
[i]
"It's fair to judge a situation based off of the statements that are presented."

I disagree. The OP was recommended to talk to the agent's broker. They stated they couldn't because the agent was the associate broker, which makes no sense as being an associate broker means nothing. Why can't the OP call the Designated Broker to have the fees spelled out to them? I didn't see anywhere in this thread how the specifics of the contract were written up. How can we tell the offer was even legal? How do we know if the seller had given the agent instructions not to present certain offers?

.
I hope we talking about makeitagreatday situation (I am) versus the original OP in 2007. The only concern if it was legal in my mind so that she could get those stupid fees off the table. If makeitagreatday said the words were spoken, you don't physically need to be there in order to make moral judgement. That was my point.


Quote:
Originally Posted by S. Chris Webb View Post
[i]There has been enough said to damage an agent's reputation in this thread without them being here to defend themselves. I am thinking of calling them to let them know this is going on.
An internet forum can be the balance of power. That being said, while I cannot speak for makeitagreatday, I would be upset if another RE agent stuck their nose in my business. IMHO, that's crossing the line.

Last edited by MN-Born-n-Raised; 01-03-2012 at 08:06 PM..
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Old 01-03-2012, 07:50 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,101,238 times
Reputation: 2200
Quote:
Originally Posted by MN-Born-n-Raised View Post
...If you told someone verbally that you get the typical 7% commission rate everyone will know what you are talking about. There is no need to be worried that you are going to be dragged in court if you suggest that is the norm because it is the norm.
You may be willing to take that risk, but not me. Not worth the possibility of losing my license and exposing myself to legal penalties doing that. I would only inform my potential client that the fee presented is the fee I charge, and not suggest that it is a market norm.
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Old 01-03-2012, 08:05 PM
 
8,597 posts, read 9,835,247 times
Reputation: 7589
Quote:
Originally Posted by rjrcm View Post
You may be willing to take that risk, but not me. Not worth the possibility of losing my license and exposing myself to legal penalties doing that. I would only inform my potential client that the fee presented is the fee I charge, and not suggest that it is a market norm.
Mentioning a typical rate is 7% is so far from price fixing. Let's pick on Bose (as in the stereo/radio company). It firmly states that you cannot discount off of retail. I can give you several hundred more examples. See A Few Notes on Price Fixing | Dealicacy
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Old 01-03-2012, 09:19 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,101,238 times
Reputation: 2200
Quote:
Originally Posted by MN-Born-n-Raised View Post
Mentioning a typical rate is 7% is so far from price fixing. Let's pick on Bose (as in the stereo/radio company). It firmly states that you cannot discount off of retail. I can give you several hundred more examples. See A Few Notes on Price Fixing | Dealicacy
Yes, but I doubt that Bose has been a subject of a DOJ antitrust action over their pricing.

Here's a general discussion about RE antitrust issues:

Per Se Real Estate Antitrust Law - Learn About Real Estate Antitrust Law

The point is, that agents should not suggest in their discussions that brokerages have cooperated to set a "standard" fee. Saying that the "typical" rate is a certain % implies that there has been some form of agreement between brokerages to maintain a certain rate.

Sorry, this is diverging from the OP topic. We may just have to agree to disagree.
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Old 01-04-2012, 01:27 PM
 
Location: Victoria Woods, CA
464 posts, read 796,765 times
Reputation: 256
Briefly reviewing postings at the moment but I wanted to thank each and every one of you for your input.

Some of you have all the facts and details correct but some have missed things here and there. Just to clarify as I see the multi-quotes flying, the agent did not drive me anywhere. We found the home on the internet and looked at the surroundings and outside. I contacted the agent to see the inside and she was able to reluctantly oblige as her schedule was completely full with meetings that week and called as I was about 10 minutes from the property asking if I still wanted to see it as she was running about 10-15 min. late. Aside from having to interrupt her almost constant texting to ask questions while I walked around the home, it was a pleasant walk through.

So to be required to give a $695 "bonus" to even present our offer to the seller is simply icing on the cake.
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Old 01-04-2012, 01:47 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,242,601 times
Reputation: 3874
Quote:
Originally Posted by makeitagreatday View Post
Briefly reviewing postings at the moment but I wanted to thank each and every one of you for your input.

Some of you have all the facts and details correct but some have missed things here and there. Just to clarify as I see the multi-quotes flying, the agent did not drive me anywhere. We found the home on the internet and looked at the surroundings and outside. I contacted the agent to see the inside and she was able to reluctantly oblige as her schedule was completely full with meetings that week and called as I was about 10 minutes from the property asking if I still wanted to see it as she was running about 10-15 min. late. Aside from having to interrupt her almost constant texting to ask questions while I walked around the home, it was a pleasant walk through.

So to be required to give a $695 "bonus" to even present our offer to the seller is simply icing on the cake.
Just as a point of clarification, from what I'm reading, the $695 was an admin fee that goes to the office, not to the sellers agent. If that's the case, it would not be considered a bonus to the agent.
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Old 01-04-2012, 02:14 PM
 
Location: In the Deem Hills of NW Phoenix
800 posts, read 1,824,552 times
Reputation: 889
makeitagreatday "On a different note, I have not yet read the inspection post in it's entirety but since you realtors see them come and go and the ones that do a thorough job, do you have any Home and Pool Inspector names that you can throw out there that will come to Fountain Hills in the event we choose to eat the $700 just to get this going?"

Yes, I know one who actually lives in FH. Byron Roman. Nice guy. Also specializes in Building Performance analysis.
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