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Wondering how much the agent pays for magazine ads, on line subscriptions, business cards, etc... I imagine the answer varies depending on company but am curious if there is anything close to an industry standard?
Yeah - not sure there's any standard, but I don't know any brokerages locally that pay for ANY of the things you list. As agents we buy all of our own memberships, subscriptions, business cards, signs, and marketing.
Correct, no industry standard. Agents usually pay for the bulk of the marketing. Some franchises offer national level deals on some things but still normally the agent that pays.
Brokerages actually have very small margins. Agents have a much better profit margin than a brokerage usually.
I met with a realtor about listing my house and she does all the marketing but if I decided to take it off the market, I would have to pay her $350.
Thats a bargain...just my photography and flyers would cost that...not to mention sign placement, any print advertising, open house food/drinks, staging items,etc.
Thats a bargain...just my photography and flyers would cost that...not to mention sign placement, any print advertising, open house food/drinks, staging items,etc.
Agents often come here and justify the high cost of sales commission by saying that they take the risk of clients who do not proceed to buy or sell a home. So either this risk is built into the price of commission or not. If it's not built into the price then iit might be "a bargain" to "just" pay $350. Otherwise, it's no bargain to pay this "risk premium" built into the high cost of commission and then pay exit fees as well.
well see, just_because, the seller signed an agreement saying they would have their house listed for sale for a certain period of time, and they would pay $X if they decided to take it off the market.
how you can twist that shouldn't surprise me. I just hope anyone else who decides to read this thread isn't confused by your post.
well see, just_because, the seller signed an agreement saying they would have their house listed for sale for a certain period of time, and they would pay $X if they decided to take it off the market.
how you can twist that shouldn't surprise me. I just hope anyone else who decides to read this thread isn't confused by your post.
I don't know if you're responding to me but there is no twisting here. Pretty basic. If an agent is taking the risk that the seller (or buyer) will not proceed to consummating a deal where the agent will make commission, then that risk is priced into the commission. If the agent is requiring the seller (or buyer) to bear that risk via exit fees, then the cost of that risk should not be built into the price. Simple. Not sure what there is to disagree with here. I don't understand your point. We all assume that the buyer has signed an agreement to this effect. So stating it like it proves anything is a waste of words. I never said that the agent is wrong (or right) for charging an exit fee and I assumed it was clear up front in the agreement.
As stated, agents come here and justify the high cost of commission by saying that significant % of sellers and buyers walk away leaving the agent with the costs. Agents often assume that consumers do not want to bear this risk and prefer the "typical" model where it's built into the price. I don't know what all consumers want but personally, I think that if sellers bear the risk that they will change their mind, etc in exchange for lower commission rates, this could be a good thing as it will clearly dissuade some consumers from engaging with an agent until/unless they are serious. If walk aways are really such a big problem and are driving up commission fees for everyone, then that seems like an easy answer to lowering commission fees.
Agents often come here and justify the high cost of sales commission by saying that they take the risk of clients who do not proceed to buy or sell a home. So either this risk is built into the price of commission or not. If it's not built into the price then iit might be "a bargain" to "just" pay $350. Otherwise, it's no bargain to pay this "risk premium" built into the high cost of commission and then pay exit fees as well.
Huh? Spottednike was dead on.....$350 is a bargain. Signs aren't free, nor lockboxes, or flyers or open houses (wherever they are still held), or professional photographers.
I rep'd you by accident, meant to hit the quote button - so there is really one less person that agrees with you.
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