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more and more consumers would do this if agents didn't control the buyer pool by locking them into contracts which they really don't understand. more fsbo sales would get done and there would be more "real" competition in the market. any agent arguing against this just has to look to the title of this thread. education is key.
So, if I understand, what you're saying is that buyers are too stupid to understand a contract worth a few thousand dollars, but are very capable of handling an entire real estate transaction worth 100's of thousands?
It doesn't work because of the anticompetitive nature and behavior of many real estate brokers that has been allowed so far.
It doesn't work, because of the high cost of doing business. License fees, Errors and Omission insurance, bricks & motor rental, MLS, Realtor dues, car, phone, website, IDX, car insurance, business insurance, gas, continuing ed classes, admins, compliance, internet, phone system....
Brokerages hire brokers/agents to sell real estate to the public. The agents have costs too. Sometimes I pay for refrigerators, plumbers, mold remediation, sinks, toilets, roll offs, dryer, chandelier, a home warranty, house cleaning, donating the contents of a third of a house to goodwill and give the receipt to the seller... I do whatever it takes, to make whatever the issue is, right for the client.
So, if I understand, what you're saying is that buyers are too stupid to understand a contract worth a few thousand dollars, but are very capable of handling an entire real estate transaction worth 100's of thousands?
For the most part, yes. They don't understand the ramifications of signing the contract because they are told over and over again by the industry that it costs them nothing to use a buyers agent. Many don't understand all of the options available to them - nor do they realize what the effect of what they are signing may have on homes in the MLS that don't offer the standard co-broke fee. This thread is a testament to that.
Many of those same buyers are very capable of handling a transaction. It's not as difficult a process as some agents make it out to be.
For the most part, yes. They don't understand the ramifications of signing the contract because they are told over and over again by the industry that it costs them nothing to use a buyers agent. Many don't understand all of the options available to them - nor do they realize what the effect of what they are signing may have on homes in the MLS that don't offer the standard co-broke fee. This thread is a testament to that.
So the buyer is to be concerned about the effect on the seller who wishes to pay less than the common rate exactly why?
Many of those same buyers are very capable of handling a transaction. It's not as difficult a process as some agents make it out to be.
You're somewhat correct, as long as things go exactly as they should in every regard. The moment a glitch turns up (see my post above regarding some real-life examples - I didn't include the one where the bank that went under contract to sell a foreclosure to my clients and turned out not to have dotted all the i's and crossed all the t's and didn't actually have title to the property, that was a fun one), it's a whole 'nother ball game. Those glitches are more common than you might think, given that we're working with human beings here.
It doesn't work, because of the high cost of doing business. License fees, Errors and Omission insurance, bricks & motor rental, MLS, Realtor dues, car, phone, website, IDX, car insurance, business insurance, gas, continuing ed classes, admins, compliance, internet, phone system....
Brokerages hire brokers/agents to sell real estate to the public. The agents have costs too. Sometimes I pay for refrigerators, plumbers, mold remediation, sinks, toilets, roll offs, dryer, chandelier, a home warranty, house cleaning, donating the contents of a third of a house to goodwill and give the receipt to the seller... I do whatever it takes, to make whatever the issue is, right for the client.
All or most of which is tax deductible. Like to have your cake and eat it too?
All or most of which is tax deductible. Like to have your cake and eat it too?
Tax deductible is very different from "cash out of pocket". I would recommend talking to an accountant about how taxes work. But oh wait, you might have to pay them.
Tax deductible is very different from "cash out of pocket".I would recommend talking to an accountant about how taxes work. But oh wait, you might have to pay them.
Absolutely! It's not like you get all that money back after spending it, just because it's "tax deductible".
I wonder if you can put agent compensation in the public MLS comments/description on a listing. Something to the effect of: "1% buyer agency fee paid by seller", or perhaps other non-standard compensation the seller wants to pay. Is that within MLS guidelines?
I wonder if you can put agent compensation in the public MLS comments/description on a listing. Something to the effect of: "1% buyer agency fee paid by seller", or perhaps other non-standard compensation the seller wants to pay. Is that within MLS guidelines?
CFPB says commission is confidential seller information.
but in this instance, the seller doesn't want it to be confidential. they want it to be public.
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