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Just a hard time swallowing 3%. Took a few phone calls and seeing the home for a under 3 hours. 27K for that is insane. Didn't want to push it and goto 1.5% because even as the home owner I realize there are drawbacks about my home.
Understand we will be getting the most for any home sold in this development other than the settlement from when they were new. Consider the FSBO I did and I will net more than any other home even listed for.
Gotta thank my wife for awesome taste and making every home we had sell in under a week.
The bolded part is the part that you are wrong about. Bringing the offer is only part of what the agent does. They also work with the title company and the lender throughout the rest of the process to make sure any surprises are dealt with and to make sure the deal gets to closing. That agent has the bulk of their money still to earn in the days between offer and closing.
*Edited to say I'm not an agent, I just work in a real estate office and have seen this all first hand.
I'm not saying they are not entitled to compensation for what they do. For my specific transaction, where I am representing myself I find it hard to pay the buyers realtor $27,000 for this. Buyers decided they wanted my home in 2 showings on back-to-back days. A few phone calls, a few emails and that's it. Now of course there is "a lot" of work to get to settlement but not $27,000 worth.
Just a gut feeling. If I would have out flat 15K fee in my ad I would have stuck with that. Reality is I am netting way more than I ever thought was possible due to comps and neighborhood action and listings.
Just a gut feeling. If I would have out flat 15K fee in my ad I would have stuck with that. Reality is I am netting way more than I ever thought was possible due to comps and neighborhood action and listings.
I kind of feel like 5K would have been fair.
Ya I completely understand, but I have a feeling what you are doing (same thing I do) is thinking about how long and how hard you have to work to earn $5K, or $27K and comparing it to how long/hard the agent is working for the same amount.
Doing that is an exercise in frustration b/c agents refuse to think of it as an hourly wage or flat fee transaction. Just about every agent I know has an easier time calculating 3% of any number than they do say 15 or 20% of that same number. They get really good at figuring out how much they are going to make by looking at the price....that number doesnt change based on how hard they are going to work for it.
The offer includes the percentage. And they may not have done much for you, but they have bene working with the BUYER. 3% or 2.5 is better than 6 or 5.
Quote:
Originally Posted by SeaNile31
Full asking price minus 3% isn't full asking price when I think about it!
I'm not saying they are not entitled to compensation for what they do. For my specific transaction, where I am representing myself I find it hard to pay the buyers realtor $27,000 for this. Buyers decided they wanted my home in 2 showings on back-to-back days. A few phone calls, a few emails and that's it. Now of course there is "a lot" of work to get to settlement but not $27,000 worth.
It's not just about the 3 hours of showing. It's about the time educating the client, showing other homes, writing the offer, the time spent from contract to closing, the cost of running a business, the time spent learning the business, etc.
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Does FSBO pay realtor fees??
