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So, the dual agency rules need to be changed then to accommodate this.
Why do we need these hard rules for selling real estate (on the MLS), but in no other marketplace or industry? You can run the risk that a guy down the street wants to sell his $50,000 car but doesn't know how to transfer title or write up a contract. But, you know what? He figures it out. The real estate industry is bogged down by these laws pitched to protect the consumer but the real intent is to protect the agent's commission.
Dual agency disclosure and agreement laws protect agent commissions over consumers' interests?
That is an astounding misperception of a fundamental point of real estate practice and law.
Dual agency laws are not relevant to MLS rules, as the concepts of dual agency and client representation apply to all licensed agents, regardless of MLS affiliation.
So, the dual agency rules need to be changed then to accommodate this.
Why do we need these hard rules for selling real estate (on the MLS), but in no other marketplace or industry? You can run the risk that a guy down the street wants to sell his $50,000 car but doesn't know how to transfer title or write up a contract. But, you know what? He figures it out. The real estate industry is bogged down by these laws pitched to protect the consumer but the real intent is to protect the agent's commission.
opowello, I respectfully disagree. The dual agency rules are fine. Agents need to understand them, but it's all too easy to fall into a trap when an unrepresented seller is trying to save money by not hiring an agent, and then expects the other party's agent to help him out.
The law as it is written is clearly designed to protect a large segment of the public who can fall into the many traps that await the uneducated in a real estate contractual transaction.
Selling a car is nothing like selling real estate. The Arizona 9 page contract is extremely complex, and there are plenty of addendums and other forms that go with it. I have spent about 10 full days in class in formal study of the contracts and many more hours per month just reviewing them to keep up, and still with each deal there is something that pops up where I have to ask my broker a question in order to stay out of trouble.
Maybe you know the contracts well enough that you can stay out of trouble, but very of the non-agent general public does.
What you would like is the law to accomodate your requirements.
The Texas law protects the consumer from the discount brokers who do not fully disclose the services that they do not provide. They now have a minimum service requirement, that we discussed, that protects the public. It does not protect a commission for the traditional realtors. The business that we're discussing is going to the fee for service people. So while it protects the consumer it also gives the fee for service the opportunity to charge a higher fee for that basic service.
If you want to get the law changed, then I recommend you lobby your legistlators. Lobbying for it here is not going to help because you're not going to have a sympathetic audience. After all, we are Realtors in business to provide a service to people who need and want our services, and we expect to be paid for those services.
We have no problem with you selling your home on your own. We do have a problem when you want the MLS opened to the public.
The Realtors developed; own; and we pay very expensive dues to have access to the MLS and we do want to protect it for our industry. I'm sure you would want to protect your industry as vigorously as Realtors do their own.
So, the dual agency rules need to be changed then to accommodate this.
Why do we need these hard rules for selling real estate (on the MLS), but in no other marketplace or industry? You can run the risk that a guy down the street wants to sell his $50,000 car but doesn't know how to transfer title or write up a contract. But, you know what? He figures it out. The real estate industry is bogged down by these laws pitched to protect the consumer but the real intent is to protect the agent's commission.
NOOO, dual agency laws do not need to be changed. They are designed to protect the consumer by forcing disclosure and specific representation.
A house is a bit more complicated than a car. I think that's apple to oranges. I know the attorney's/title companies wouldn't love your system very much.
NOOO, dual agency laws do not need to be changed. They are designed to protect the consumer by forcing disclosure and specific representation.
A house is a bit more complicated than a car. I think that's apple to oranges. I know the attorney's/title companies wouldn't love your system very much.
Exactly -- because they would have to work harder for their dollar and prove there medal in a *free* market. You can say this is a larger debate that can pertain to any industry (but I believe the real estate industry is by far the biggest abuser). This being where fees and "services" are forced on the consumer and lauded as a neccessary protection in a "scary" world.
Exactly -- because they would have to work harder for their dollar and prove there medal in a *free* market. You can say this is a larger debate that can pertain to any industry (but I believe the real estate industry is by far the biggest abuser). This being where fees and "services" are forced on the consumer and lauded as a neccessary protection in a "scary" world.
Black chopper and aluminum foil helmet time.
I'm outta here.
Exactly -- because they would have to work harder for their dollar and prove there medal in a *free* market. You can say this is a larger debate that can pertain to any industry (but I believe the real estate industry is by far the biggest abuser). This being where fees and "services" are forced on the consumer and lauded as a neccessary protection in a "scary" world.
opowello, you obviously don't need any assistance in selling your home. All you want is to be able to list on the MLS for almost nothing.
If you want to list on the MLS but don't want to pay the price to have the minimum service that Texas legistators have mandated, then do what the realtors do.
Get your own real estate license; pay the NAR fees; pay the state association fees; pay the local association fees; then you have complete access to the MLS just like every other Realtor.
Or put another way, if you can't beat 'em, join 'em.
I think OP has a valid point. I have not read all the posts and it seems most suggestion is for him to lower the offering price and against cutting commission. (surprise?!! ).
Let's say. The OP offers 200k which the seller could accept (getting 188K after paying commission). The seller agent got additonal 3% ONLY because OP has no buyer's agent. I do not think it is unreasonable to ask rebates in current market.
Yes, OP could lower the asking price (4k, 2% of 200K) to make up the saving. However, a lower asking price (196K) bascally means the seller has to take the loss (instead of an agent getting an extra bonus) which could prevent him/her from accepting the offer.
I'm getting ready to make an offer on a home in Austin, TX.
I don't have a buyer's agent. (Something I've avoided, since having our pockets picked, repeatedly, the first time we bought a home.)
I need to know the best strategy for getting as much of the commission rebated as possible.
As I see it, some of my options include:
1.) Telling the seller's agent we'll forgo representation if he'll reduce his commission to 4% - returning 2% to us.
2.) Going to one of the discount agents who advertise on the web - like this one: Cash Rebate - Flat Fee Listing - Austin Realtor - Mary Liu (http://www.localrealtypros.com/FAQ.html - broken link)
Unfortunately, while the large font says "2% rebate," the small print says "one."
I'd really like to get a 2% rebate on this deal, especially since it'd represent virtually no work whatsoever on the part of the agent who represented us.
Thoughts?
I don't give rebates however, I do know a few agents that do.
The part that I find so wrong about a Realtor giving the buyer a rebate is that when I speak with these Agents, they don't really give much help to their buyers.
I actually (true story) had a agent that gives rebates tell me that she doesn't even try to negotiate for her clients. So...whats the point?
I typically get more than 2% off the selling price for my clients.
I don't give rebates however, I do know a few agents that do.
The part that I find so wrong about a Realtor giving the buyer a rebate is that when I speak with these Agents, they don't really give much help to their buyers.
I actually (true story) had a agent that gives rebates tell me that she doesn't even try to negotiate for her clients. So...whats the point?
I typically get more than 2% off the selling price for my clients.
I say...you get what you pay for.
Just my opinion...
Vicki
It sounds like those people shouldn't have been using a discounter then (and, by all means, not all should) But, many people are capable of negotiating a price themselves (writing an offer letter, etc, etc) and just need someone to cut through the red tape for them (say getting their post on the #1 real estate exchange or getting a seller's agent to even look at their offer). I argue that there are too many unnecessary rules and regulations that make the process overly expensive for all parties.
Merry Christmas to all and thanks for the continued discussion despite the differing views...
You're not selling me on the idea of a buyer's agent.
Like I said, is this what you'd tell a first-time buyer or immigrant sitting in your office or talking to you on the telephone? Of course not. You'd answer their questions and address their concerns in a professional manner, correct?
People complain about bad real estate agents giving the rest of them a black eye, then I read posts like this and realize that real estate agents possibly deserve their reputations as people not to be trusted.
You COULD have given a concise, professional answer....or you could have not answered at all. But no, you chose to tease and make fun.
Pointing and laughing is for the playground.
Not all buyer's agents are equal. I have worked with experienced, savvy home buyers who were simply unaware of many aspects of the new construction process. They were amazed and quite pleased with the information that I disclosed to them.
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