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Of course 99% of agents are in it to make money, I think you'll all agree.... That's not a bad thing, but I do think it affects their behavior. If they know they are not going to get paid, or paid less, they will not be inclined to show my home.
I foreshadow agents steering buyers to comparable homes where they know they'll get a commission, making off comments about the downside to my home, or even informing a buyer that asks to see my home that they will not show it to them unless they get paid.
So yeah, I get it.... but I think times are changing... I think home buyers/sellers are becoming more and more savvy.... and with forums like City-Data to ask questions and learn from, it's happening at an increasing rate.
I have not seen any evidence of the changing times, sometimes it is worthwhile to buck the system and sometimes it's not. I don't like paying huge commissions either, just like I don't like paying the capital gains taxes, but the system is what it is, and so long as there are still profits to be made, it is still worth it to pay the people who run the game.
Jimhcon, you haven't seen it, because millennials haven't been able to get into the housing market, but there is a generation of people who are use to using the internet to buy everything and eventually they'll be able to crawl out of their student debt and enter the housing market.
Jimhcon, you haven't seen it, because millennials haven't been able to get into the housing market, but there is a generation of people who are use to using the internet to buy everything and eventually they'll be able to crawl out of their student debt and enter the housing market.
99.99 percent of people begin their home buying endeavor's by getting a agent. That is because they are for the most part overwhelmed by the process.
It is not just home shopping, it is financing, escrow, inspections, contingencies, disclosures and legal aspects. For buyers, the agent offers a mentor to guide them through a very complex process, and the agents shun do it yourselfers like the plague. The vast majority of home buyers put their trust in their agents and follow their counseling.
Jimhcon, you haven't seen it, because millennials haven't been able to get into the housing market, but there is a generation of people who are use to using the internet to buy everything and eventually they'll be able to crawl out of their student debt and enter the housing market.
That isn't the trend for Millennials/Gen Y as of now. They are the group most likely to use a buyer agent via NAR surveys. They generally just research their buyer agents really well before working with someone. Every Millennial I have worked with has researched me online before I ever got a phone call from them. Millennials are generally well researched by the time they come to agents, but I think they quickly realize they don't know enough to venture it alone.
Boomers are the group least likely to use a buyer agent which makes sense because they have been through the process before.
Quote:
Originally Posted by jimhcom
99.99 percent of people begin their home buying endeavor's by getting a agent. That is because they are for the most part overwhelmed by the process.
Actually that percentage is off. About 80-85% of buyers end up using a buyer agent, but many, many consumers begin their home search process by themselves online.
That isn't the trend for Millennials/Gen Y as of now. They are the group most likely to use a buyer agent via NAR surveys. They generally just research their buyer agents really well before working with someone. Every Millennial I have worked with has researched me online before I ever got a phone call from them. Millennials are generally well researched by the time they come to agents, but I think they quickly realize they don't know enough to venture it alone.
Boomers are the group least likely to use a buyer agent which makes sense because they have been through the process before.
Actually that percentage is off. About 80-85% of buyers end up using a buyer agent, but many, many consumers begin their home search process by themselves online.
I stand corrected, now what percentage of 15-20% buyers are actually agents themselves?
Agents don't shun me (or other owners who are in a seller's market), a lot of them would love to put their sign on my properties (one even did, claimed it was a mistake), but when it comes to raw land deals, and you have a property that is needed for a project, there really isn't any need for a buyer agent. The developer is going to have done the due diligence needed to secure financing for their project and that would cover any thing that an agent could do and on top of that the financing is usually more complex then what a Realtor is trained to handle.
In my group of friends no one has used a buyer's agent, they've done their own research and were able to handle the paperwork. Do they represent a minority, yup, but will more people forgo a buy agent, maybe, remember flat fee mls services and FSBO are trending upwards, even if Realtors are trying to fight it.
I stand corrected, now what percentage of 15-20% buyers are actually agents themselves?
I stand corrected. In the 2014 survey it was 88% that used a buyer agent. It went up. I think most of that percentage that don't use an agent will be investors. A small percent will be savvy consumers buying a personal residence.
Quote:
Originally Posted by perigee
In my group of friends no one has used a buyer's agent, they've done their own research and were able to handle the paperwork. Do they represent a minority, yup, but will more people forgo a buy agent, maybe, remember flat fee mls services and FSBO are trending upwards, even if Realtors are trying to fight it.
Actually FSBO's are relatively flat as are limited reps. The NAR 2014 buyer/seller profile showed FSBO's at 12% of the market and they tend to be 12-14% of the market sector. They aren't trending upward. I think it peaked at 17% of the market during the height of the boom. There has always been and will always be a savvy group of consumers that can do it themselves. They did trend downward during the bust when it was really hard to sell a house, but during the recovered market, it went back to relatively normal levels. That is a pretty normal cycle. When it is easier to sell homes you see more FSBO's and when it is harder to sell homes you see less.
Why you are reading someone's personal opinion and calling it fact/trend for all real estate agents is beyond me. That blog is written to help agents in their business. It is totally expected that they would write an article on how to overcome FSBO's for agents that want to solicit them. It isn't a research paper.
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