Real Estate Agents who split commissions (buyer, closing, price)

[jperryrocks]

I'd be more concerned about finding a GREAT agent.

A buyers commision is what....2.4%?

Why worry about that? Be concerend with getting an agent who's got your best interest and knows the game.

I've dealt with cheap agents before, and while I got a deal done, they were lacking in solid advise and just seemed to go as the wind blew them.

You can spend $3 to get $2.50 back, so it's all relative.

[islander03]

Originally Posted by Peter.

I also wonder about the future of real estate profession ... how to justify the same price for vastly different levels of service. Eg. client A does 0 research, and expects to be chauferred between properties - and has no idea of what they are looking for.

Client b know exactly what they are looking for and invests many hours in doing off line research - maybe only communicating 1 email / week with the RE.

Client B requires < 5 hours total time via email - and buys a $500k house. Client A requires 80+ hours of weekends/evenings - and ends up buying a $200k house after insisting on being shown the same houses as client A.

I think most reasonable people conclude somebody over paid and somebody under paid for services rendered. Suspect there are reasons why many legal services are either hourly - or a flat rate for a specific service.

Now i will wait patiently for the RE's on the board to patiently explain how i have it all wrong

- Peter

I fit Client B profile as an out-of-state buyer. While i know that our home purchase was an "easy sell" for our realtor, I also know that I'm paying for her local market expertise. This is something she's earned and acquired through years of real estate in the local market. I'm paying her for her knowledge and advice, not necessarily to show me houses and help me figure what I want. She's earning her commission by answering my long list of questions before, during, and probably after the sale is completed.

[BoBromhal]

:clap :clap :clap

though let's remember - nobody's asking you to pay us for the work we've done over the years, as if we DESERVE more from you because of a simple number of years sticking it out. Years is relevant in that you've seen FIRST-HAND what has happened over those years to houses, neighborhoods, and the paperwork we're required to use.

[MB1972]

Originally Posted by NewUser

Sure Vicki! Here ya go

LegalZoom: Online Legal Document Services: LLC, Wills, Incorporation, Divorce & More
WebMD - Better information. Better health.

Legal zoom is a complete disaster....I know as I've dealt with them!

[BoBromhal]

Originally Posted by Peter.

I also wonder about the future of real estate profession ... how to justify the same price for vastly different levels of service. Eg. client A does 0 research, and expects to be chauferred between properties - and has no idea of what they are looking for.

Client b know exactly what they are looking for and invests many hours in doing off line research - maybe only communicating 1 email / week with the RE.

Client B requires < 5 hours total time via email - and buys a $500k house. Client A requires 80+ hours of weekends/evenings - and ends up buying a $200k house after insisting on being shown the same houses as client A.

I think most reasonable people conclude somebody over paid and somebody under paid for services rendered. Suspect there are reasons why many legal services are either hourly - or a flat rate for a specific service.

Now i will wait patiently for the RE's on the board to patiently explain how i have it all wrong

- Peter

if you as a professional deal with type A, then you've been compensated fairly. If you professionally represent B then you've been compensated fairly.

now the difference is not the price range. It's finding, executing, and meeting reasonable expectations.


The internet is an AWESOME thing. it's made it clear - what the Buyer gets is REPRESENTATION in a complex and multi-faceted, ever-changing transaction that is critically important financially, and which most engage in 3-5 times in their life.

Unless I am at my desk, constantly refreshing the database, then every Buyer has the opportunity to see what is available NOW as quickly as I do. As I tell all of my clients now - it's more likely that you will IDENTIFY the house you want to buy than I will.

[VickiR]

Originally Posted by NewUser

Sure Vicki! Here ya go

LegalZoom: Online Legal Document Services: LLC, Wills, Incorporation, Divorce & More
WebMD - Better information. Better health.

Thanks! But...I'll pass! I prefer to take my kids to a real doctor, with experience!

And I did pay a real attorney for wills, last year. I didn't even think about asking him to gimme some of his income! What WAS I thinking?

Ok...say what you will and do what you want.

MY opinion is that when I need a professional, I'll hire one and I will happily pay for his expertise because "I" don't know everything about health or the law. For those of you that want to find a Realtor that will give you some of his/her income back...go for it. But...ask how long that agent has been in business because you pay for experience. And usually, it is that experience that negotiates for you and that experience that steps in to help you when there is a problem with the home inspection or the builder! Best of luck to you!

Vicki

[Peter.]

pretty disappointed in responses posted.

Fact is - pretty much every profession charges based on experience AND time required. Equating 5 hours versus 80 hours of time seems like fantasy land to me.

does a doctor/mechanic/accountant/real estate agent with 20 years of experience merit a higher rate then someone with 2 - absolutely. Same for an established office versus a new one. But that rate should be multiplied by effort required. And no way should a 2 year person have the same expertise and pay rate as a 20 year vetern. Many times the higher rate is actually a cost savings because the experienced pro will require many fewer billable hours.

It is this basic concept that RE will undoubtably need to come to grips with. Perhaps I am misinterpretting - but the tone of the responses seem to indicate that the special powers and training of RE goes beyond that of every other profession. I absolutely do not doubt the value of a good RE. But i am very skeptical of the compensation package being based on a fixed rate of the sale - versus years of experience and effort required.

Consider me somewhat skeptical

[BoBromhal]

you're disappointed we didn't disagree more vehemently with what you posted?

[RedZin]

Stick to the original topic, folks. If you want to debate RE pay, do it on the Real Estate board.

[Peter.]

Originally Posted by BoBromhal

you're disappointed we didn't disagree more vehemently with what you posted?

more disappointed with the lack of an articulated response explaining how RE rates are a size fits all regardless of the experience of the service provider or effort required by that individual.

More clear now? The fact that you are in the profession and not able to discern this kinda makes my point for me.