Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The buyers agent typically gets 1/2 of the commission, so in a 6% market, they'd get 3%. Most agents won't bother with a listing that will give them less than that, as they can make more money selling a different home to their client.
Bob
True. And it's called steering- but for economic reasons. In any case, it's unethical since a buyer's agent has a fiduciary responsibility to their client and should actually be showing their client a good deal if possible.
This is exactly why the consumer should be looking at houses they find on their own as well as those they are steered to by an agent. The higher the price the more money the agent makes, whether buyer's agent or seller's agent. Probably a good argument for giving a buyer's agent a flat fee only- take away the incentive to show high priced homes only.
Real estate is not a commodity. A 3 bedroom 2 bath 1100 sq ft brick ranch on 1/10 of an acre in Denver is different then another in Atlanta.
Real estate services are not a commodity. You can hire a licensee by the hours, or task, or flat fee full service, or full fee full service, etc.
I know after 26 years of being licensed, it has never been a two week class. Now its 168 hours and pass the school test, the state test and a criminal background check.
There are no FSBOs on the MLS. Every one of those properties advertised on the MLS have a valid listing contract.
I am buying a house via a FSBO right now. The owner has owned many homes and so have I.
Such a pleasure not having an bored housewife in middle of transaction slowing it down to collect a commission to cover her lyposcuction procedure and car lease.
also realtors are lazy. they sit there and wait for listings to appear.
The house I am buying there was one or two blocks I really liked. I called literally like ten realtor. One by one they tell me I will do a MLS query tool so as soon as it is listed I will call the agent and get you in. I am like I already have that tool set up. And by me it usually is 3.5% on an exclusive and 5.0% on dual agency.
A few months went by and one day was a bit bored drove over knocked on a few doors, one owner is about to relocate in a few months and we did a deal.
OMG would it be so hard for the realtor to do that? Lazy bones
gina,,,i dont believe we conspire against fsbo's ive approached many fsbo's with potential buyers,,
but thier is a general attitude,,,of disrespect towards brokers, from fsbo's,,which is fine,,personally, but professionally,,it can be a deal breaker,,more often than not,,
to make an offer, i need property disclosures for the buyer,,the fsbo owners are usually, not very cooperative, or lie thru there teeth about material facts (leaky roof/water in basement, etc.....they get very defensive...
and just suppose, we make an offer on a fsbo,,,well,,,not knowing what most of the verbage means on the general purchase and sale real estate contracts,,they accuse, and ask 200 questions,,,and immediately get emotional,,with the phrase go f--- yourself,,being the predominently, fsbo phrase in these parts,,
now say my buyer needs to sell to buy and the purchase agreement has contingencies, in it,,,and also property inspections,,,these freak out many fsbo owners.
and if a fsbo isnt working with a lawyer,,,its even worse,,
the upside with working with fsbo's is that, they will either overprice thier property,,because they are testing the market,,,(really dont need to sell) or they actually do, undervalue thier property, so in an effort to "save" 5% comission,,,they may lose,,over 20 % value,,,
if i have buyers that are investors,,i send them to the fsbo's
the analogy i like with fsbo's is this,, it may be legal to do your own divorce,,,,while thinking you are saving 2-3k in lawyers fee's,,,,but if the other spouse gets a lawyer,,its not an even playing field,,,you are at a distinct disadvantage,,and could lose, over 20-50k, if not more(would you want to go to court,,with your spouse having a lawyer, knowing all the laws and loopholes,,and you do not?)
now,,ive seen a handful, of people that will take the time to study most of real estate rules/laws, contracts, liabilities, etc, and can do thier fsbo very well,,,however, they are very much the minority!
First, I'd never hire anyone who writes as poorly as you do. It seems your ego is so huge that you think you don't have to bother writing anything close to correctly.
Second, your adorable status - in fact I'll copy it in case you decide to change it for some odd reason - "I love animals! They're tasty!" confirms my thought that you're an acne-ridden HS boy in his pajamas.
First, I'd never hire anyone who writes as poorly as you do. It seems your ego is so huge that you think you don't have to bother writing anything close to correctly.
Second, your adorable status - in fact I'll copy it in case you decide to change it for some odd reason - "I love animals! They're tasty!" confirms my thought that you're an acne-ridden HS boy in his pajamas.
I'd never allow you to represent me.
"...an acne-ridden HS boy in his pajamas."
Good choice. He appears to be overqualified for your needs.
Of course we are offering 3%. Everyone knows that the selling/buyer agent split the commission.
You have that perfect know-it-all arrogant attitude to be a realtor here for sure. That is the attitude I won't pay to sell my home. Customer service is key here. This person tried to act like we don't have a clue and pull one over on us. The selling price of the home she gave those figures for was a totally different figure than she told us in person. Am I going to hire this person that can't even keep the figures the same? No.
You could also do the following.
Get a agent who is a broker to work on a flat fee commission. He handles the listing and paperwork but you handle EVERYTHING ELSE. Finding the buyer and all showings, open houses, etc. you are responsible for, you'll still have to give the 3% to buyer agent if you are approached by a buyer being represented, but YOU find the buyer and bring them to the table all you're paying is broker fee/commission
Or
You could offer 4-4.5% to a agent if they double end the deal. I'm not big on double ending deals but I would be more inclined to do a double end IF the agent was my agent representing me as the seller first)
Or
Go get your RE license and do a double end deal for yourself. Some people do that. Then you can walk a mile in a agents shoes and see how it's done. You may like being a agent.
Thats becuase when most people are making 25$/hr for comperable intellegence/certs/etc real estate agents are making a killing. I mean if I sell a 300k house the 2 agents are making 5 figures. So they only have to sell a few homes to make the equivalent to most other jobs. There jobs are not rocket science which is why alot of people are going FSBO, it is because their commission is HIGH way higher than any one else would make for comperable educatoin and expericene.
It is the order of magnitude of their compensation that upsets people. The MLS is a good tool but you as Joe agent did not develop that tool and too many agents act like its their own personal web site and its not. There are plenty of agents that act as limited service agents to put FSBO's on the MLS. Just because you took your 2 week course does not put your name on the patent or copy right for the MLS.
Its these sort of smug attitudes that give real estate agents a bad name.
You as joe agent dont OWN the MLS, maybe they should be teaching that day one in your 2 week course. It is a brilliant marketing tool developed by highly skilled programmers, web developers and real estate agents who likely had degrees in computer science.
Last I checked there is only a small percentage of people that try FSBO and of those 87% ultimately list with an agent.
You as joe realtor with your 2 week cert does not get to dictate what goes on with the MLS.
Math must not be your strong suit...3% of 300k is $9,000 before splits so each REA is not making 5 figures unless you're counting decimals.
I find it humorous that someone is knocking the education of REA when their post is so rife with spelling and grammar errors I had to read it multiple times to comprehend it. I guess that's not your strong suit either.
Actually, the agents do sort of own the MLS since they pay for it and provide the information for it. In my market to be specific, the Brokers own the MLS. It isn't a public site. The MLS is a convenient platform to share information between brokerages to help sell homes and a contract for commission shared for a co-broke. You don't seem to know much about real estate either so why are you here trying to tell REA about their job?
Your voting rights as joe agent are like my voting rights holding 100 out of 1,000,000,000 shares of common stock of a company, it approaches 0. MLS is a big deal but you dont own it, period end of story.
Each owner has an equal vote in my market which means it is actually about 1 of 378. Most of those company are very small mom and pop operations so they actually form the majority as a result.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
