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.
I will show whatever fits my clients needs. There have been a few times a flat rate listing has fit my clients needs and the MLS showing instructions stated to contact the owner directly to make showing arrangements. The owners either did not answer the phone & had no answering machine/voicemail or they returned my call 2-3 days later.
When Selling New York posts the potential commissions, it shows a flat 6% on the screen. Let's say they're listing a $2m condo, it would say: Potential Commissions = $120,000
That is a flat 6% and is the potential commission if the realtor is working both sides of the deal (realtors on each side split that 6%) and also would assume that that realtor is also either his own broker or on a 100% commission split with his broker (if she's not the broker, they're getting between 50-80% of the leftover)
More accurately, when Selling New York puts up the Potential Commission, take that number and cut in half in your head twice, and that's more reasonably what that agent will receive. (In this case, 1.5% as opposed to 6% = $30,000)
Also, there are a lot of things that go in to selling luxury condos. Just on the basic level, advertising in the WSJ, local papers, etc will cost hundreds, for sure, and then notice when they hold broker's opens and open houses, they're catered? Often times, there is a party. That's thousands of dollars.
If they stage the place, that costs thousands. etc. These are just some things that come right out of the agent's pocket.
Just my .02 cents.
No matter which way it is sliced, diced, and marketed, the homeowner is expected to pay for the deals realtors make with each other - it reminds me of the IRS.
No matter which way it is sliced, diced, and marketed, the homeowner is expected to pay for the deals realtors make with each other - it reminds me of the IRS.
And who else should pay (leaving aside the monetary contribution of the buyer through their financing)? The homeowner is paying a fee to the Realtor to get their home sold. How the Realtor divides up that fee to pay other agents or expenses in the endeavor to get the home sold is up to them. All businesses depend on customers/clients to provide the funding to sustain their business. Realtors are no different.
No matter which way it is sliced, diced, and marketed, the homeowner is expected to pay for the deals realtors make with each other - it reminds me of the IRS.
Why would that be?
The IRS seizes wealth for the powers-to-be to buy votes.
Realtors compete to provide services in exchange for a mutually-agreed payment.
When realtors make in one sale what many people work all year for, it is like running ones nails down a chalk board. Reaonable fees would really be refreshing.
When realtors make in one sale what many people work all year for, it is like running ones nails down a chalk board. Reaonable fees would really be refreshing.
While that may seem reasonable and get support, how many people buy a home that is worth 30 to 40 times their annual income? I think that is well outside the norm.
When realtors make in one sale what many people work all year for, it is like running ones nails down a chalk board. Reaonable fees would really be refreshing.
Flat fees are reasonable.
Pay for service is reasonable alternative.
Yet , most buyers and sellers choose to impose the very real business risk on the broker/agent.
In my neck of the woods, it is customary for the listing broker to handle showing appointments either through the " front desk" or via outsourcing to a showing service. In the city ( Chicago) it is far more customary for the listing agent ( or an assistant) to be the one to unlock the doors. In other words, it is uncommon for buyer's agents to work with the seller for an appointment, unless it's a flat fee deal.
My state imposes a fiduciary responsibility on all borkers/agents regardless of compensation. All offers are communicated to the listing broker/agent who then, in turn, works with the seller. Given most flat fee guys have never seen the property and don't know the local market they add no value.
I have no issue with showing flat fee or FSBO properties. In fact, I often seek them out to help demonstrate the value of another property because most DIY sellers are priced seriously way out there.
Such properties tend to be harder to show because the sellers do not return calls promptly or want appointements at their own conveneince. In other words, they do not understand how markets work.
And lastly, it's been my experience that flat fee sellers tend to stalk me with the hard sell, after the showing.
When realtors make in one sale what many people work all year for, it is like running ones nails down a chalk board. Reaonable fees would really be refreshing.
And that agent may very well have worked on that deal for over a year and spent an awful lot of his or her own money in the process.
When realtors make in one sale what many people work all year for, it is like running ones nails down a chalk board. Reaonable fees would really be refreshing.
There are reasonable fees out there. Sellers just typically choose not to pay them. I say this as a fee-for-service agent. 75% of my business is commission based when sellers are given a choice. MOST choose to pay more.
I know...It's crazy, but true.
There is a business loss built into every single commission based listing. Because the commission model is an "all or nothing" approach to business fees have to be inflated for all of the losses that will occur. In order to have reasonable fees, the business risk has to be removed from the real estate transaction. In order to do that, the seller has to pay for service regardless of outcome...just like you would with a plumber, hairdresser, CPA, doctor...whatever service industry.
Most sellers don't want to be responsible for payment if their house doesn't sell. As a result, commissions are popular with them and the main way to compensate agents for their time.
We take on the business risk because the rewards are huge. It really is that simple.
So...if you don't want to pay a high commission, that's totally fine. Find a flat rate, fee-for-service, or hourly rate real estate agent in your area. Just remember that you pay for those services regardless of outcome though.
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.
