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Property taxes is a different issue because it is an ongoing payment while you live in the property and the property appreciates so it's part of the investment. The sale commission is a one time fee at time of sale so you can't compare these two things.
So for the ones against my original point, I would think if you go out to a dinner in a group of 4 people, the total bill is $80, separate checks, $20 each check, each one of you will agree to pay individually a $16 to the waiter, right? (not the perfect analogy but you get the idea)
Property taxes is a different issue because it is an ongoing payment while you live in the property and the property appreciates so it's part of the investment. The sale commission is a one time fee at time of sale so you can't compare these two things.
So for the ones against my original point, I would think if you go out to a dinner in a group of 4 people, the total bill is $80, separate checks, $20 each check, each one of you will agree to pay individually a $16 to the waiter, right? (not the perfect analogy but you get the idea)
No, you lost me on that one. If the service was fair, you'd pay $80*1.15/4= $23 each person. No?
The waiter makes the same percentage of tip whether you have $100 balance on your credit card or $10,000 balance. It has no bearing on his income. All that matters is the quality of the meal.
Spoken like someone who knows absolutely nothing about the business side of real estate. Most people assume that when a 25K commission is paid, one agent keeps it all. BEEP, wrong answer. That 25K is split (usually 50/50) with another agent. That leaves you 12.5K. Of that, the agent pays the brokerage that allows him/her to practice.
On a side note...when I first got into RE, I worked for a brokerage that kept MORE THAN 50% of that amount. They charged marketing fees, sign fees, admin fees. I made a 14K commission (that's what I got to keep) and after the brokerage took all their stinkin' fees, I was left with $3900 (BEFORE TAXES).
Anyways, let's say the brokerage keeps 30% of the 12.5K commission. That leaves the agent with $8750. Are agents exempt from taxes? Of course not. There goes another 30%...which puts you at $6125. I keep half, and put half back into my business. If you break that half down into the amount of time it takes to market and negotiate an offer (I'm not including every little step involved in the process), the pay is no different than what most people make. What makes a difference is an agents volume. If you're only selling one house a month, you're making enough to live like average people live. There's nothing wrong with that. Some of us prefer to have a nicer lifestyle...and there's nothing wrong with that either.
People have this misinformed perception that all agents are rich and do nothing to make their money. The average income for a Realtor is 50K per year. I would love for anyone who doubts how hard I work and discounts the value I bring to do my job for just 8 hours.[/QUOTE
I understand fully how the breakdowns work and again nothing is going to change because the system is exactly how you want it. And frankly I am pretty sick of hearing about this crap that I am not going to reply to any more commission rants. More and more I read and deal with my own experiances with trying to sell my house and working witn inept agents that I am sure this profession is merely a hobby. Just now I got off the phone with my agent about some feedback on a showing the other day, my house was listed at $489 last friday when these buyers came through, my agent tells me today that these buyers can only afford high $300 low $400. WHY THE HELL are they looking at my house????????????? is this a way of saying they do not want it> just SAY SO. most likely its another agent just taking a ride doing there hobby!!!!!!!!!!!!
Property taxes is a different issue because it is an ongoing payment while you live in the property and the property appreciates so it's part of the investment. The sale commission is a one time fee at time of sale so you can't compare these two things.
So for the ones against my original point, I would think if you go out to a dinner in a group of 4 people, the total bill is $80, separate checks, $20 each check, each one of you will agree to pay individually a $16 to the waiter, right? (not the perfect analogy but you get the idea)
A group of 5 sharing a $80 tab would pay $16 a piece if one check.
If you are getting separate checks it would be divided by who had what.
I see absolutely no comparisons to selling a house in there though.
Not trying to change the world here but I keep wondering how fair it is for the commission to be based on the SALE price instead of the EQUITY you have on the home.
Imagine you are selling your house for $500K but you have only $100K equity in it. This means you're paying $25K (5%) commission on a sale that you received $100K, which makes it a 25% commission!!
I can't believe you all responded to this post. I thought it was some kind of joke. If the poster was serious...this is the dumbest idea/arguement I have heard in a long time.
I see ZERO correlation between a homeonwer's equity and the commmission they should pay to sell.
I was only comparing the property taxes to real estate commission for the way it is calculated..... price being the only variable in a certain area.
The check idea is right on the money.... if the bill came to $80 then each person should pay a 20% tip for their portion of the bill. Lets say one person spent $50 and the other 3 spent $10, Your saying they should all just pay $4 each for the tip?? NO.... the person who spent $50 should pay $10 towards the tip and the other three should pay $2. That would be fair.
I can't believe you all responded to this post. I thought it was some kind of joke. If the poster was serious...this is the dumbest idea/arguement I have heard in a long time.
I see ZERO correlation between a homeonwer's equity and the commmission they should pay to sell.
I can't believe you all responded to this post. I thought it was some kind of joke. If the poster was serious...this is the dumbest idea/arguement I have heard in a long time.
I see ZERO correlation between a homeonwer's equity and the commmission they should pay to sell.
BTW, I am not an agent.
I thought it had to be a joke too. A bad one, but a joke.
I understand fully how the breakdowns work and again nothing is going to change because the system is exactly how you want it. And frankly I am pretty sick of hearing about this crap that I am not going to reply to any more commission rants.
I'm sure many people will appreciate the lack of gems of wisdom like:
Quote:
Originally Posted by MJinNC
Doesnt it make you sick sometimes to hear how they justify their commission.
I mean seriously... how do you expect people to respond? It's a shame you're not having any luck selling your house, for that I am sorry. It's not uncommon for people to look at house with an interest of buying, only to find out they can't afford it. Maybe they didn't talk to a loan officer before they started looking? I suppose you should be happy people are even coming to look at your house. It sounds like the agent may actually be trying to sell your house. I can't imagine you're in this situation, but the most common reason houses don't sell these days is because owners think their house is worth more than it is.
It's not uncommon for people to look at house with an interest of buying, only to find out they can't afford it.
Or maybe it's close to what they can afford but the seller doesn't want to haggle. Liz
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(not the perfect analogy but you get the idea)
