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Does any other non realtor feel that the commission structure is run off a broken system?
We are about to sell our home and there are quite a few realty companies out there pitching 3.5-4% commission rates .(which I think is still too high) opposed to 6% which is just ridiculous. Those rates were when houses were under $200k, not when the average home is over $400k.
So What exactly are realtors doing to split 20-30k in commissions? I mean with Zillow, mls, Redfin, realtor.com, docu sign, etc..... I feel like the actual buyer is doing most of the work. EVERYONE in the market is looking on their laptops or phones for homes and telling their realtor to set up a time to see it. Buyer agents spend pennies to list a home and then the Internet does the rest.
The sellers Are getting ripped off! What are the other options?
Last edited by Oldhag1; 07-17-2016 at 10:27 AM..
Reason: Duplicate thread/post
Does any other non realtor feel that the commission structure is run off a broken system?
We are about to sell our home and there are quite a few realty companies out there pitching 3.5-4% commission rates .(which I think is still too high) opposed to 6% which is just ridiculous. Those rates were when houses were under $200k, not when the average home is over $400k. So What exactly are realtors doing to split 20-30k in commissions? I mean with Zillow, mls, Redfin, realtor.com, docu sign, etc..... I feel like the actual buyer is doing most of the work.
Well, get your license, sir, spend a few years learning how to represent clients and keep them out of trouble and get their transactions closed. Spend another few thousand dollars per year on licenses, signs, CE classes, staging items, professional photos etc. Be ready to answer your phone practically at any hour of the day and sometimes night when there's an emergency. Have a "who to call" list a mile long for trustworthy vendors for repairs, painting, lawn work, electrical and plumbing work. Know all the clerks at the county building by their first name because you're down there researching and verifying permits on every listing before you even list it.
Then let me know how you feel that the "actual buyer" is doing all the work.
Like it or not, real estate commission is baked into the selling price. Had the majority of the comps that you use to base your price on not included commission your number would be 4, 5 or 6% less. No commission, lower-selling-price comps. If you could buy your junk directly from the manufacturer in China you wouldn't pay so much for it at Walmart.
Why not go FSBO and pass the commission savings on to the buyer.
Or get your own license, start a business, and offer 0.5% commission rates--or whatever you think you could reasonably offer and stay in business. Competition is the American way. (Unless, of course, you're a really big business, in which case you'd opt for government protection and corporate welfare.)
Does any other non realtor feel that the commission structure is run off a broken system?
We are about to sell our home and there are quite a few realty companies out there pitching 3.5-4% commission rates .(which I think is still too high) opposed to 6% which is just ridiculous. Those rates were when houses were under $200k, not when the average home is over $400k. So What exactly are realtors doing to split 20-30k in commissions? I mean with Zillow, mls, Redfin, realtor.com, docu sign, etc..... I feel like the actual buyer is doing most of the work.
If they're available in your area, use a flat rate brokerage to get it into the MLS etc. Handle the showings yourself, along with the contract negotiations (or go with a brokerage that offers a la carte options for those items also).
Oh goidy, this again. Let's do lawyer fees, what my hairdresser charges, and the upcharge on a bottke if wine in a restaurant next. Truthfully, I consider all if those MORE ridiculous than what GOOD, PROFESSIONAL Realtors charge.
But go ahead and do FSBO. That's your solution.
PS Your math is off. WAY off. That $200,000 house at 6% creates a commission of $12,000 not $20k. And that (usually) gets split up, so that the actual agent get around $3,000. Takrs a lot of $200,000 homes to maje a decent living.
Predictably the same answers. I think the OP would be better served if the agents on here explained how, in a time of increasing information flow via the internet, the real estate industry justifies the same commission they charged back when the information was harder to get, took more time to compile, and was generally a paper based thing. However, in this day and age when so much of the information a buyer needs is easily obtained and cheaply produced by the representative agents, why has the pricing structure not responded accordingly?
Predictably the same answers. I think the OP would be better served if the agents on here explained how, in a time of increasing information flow via the internet, the real estate industry justifies the same commission they charged back when the information was harder to get, took more time to compile, and was generally a paper based thing. However, in this day and age when so much of the information a buyer needs is easily obtained and cheaply produced by the representative agents, why has the pricing structure not responded accordingly?
What "pricing structure?"
Predictably the same turn of the usual thread.
Compensation is variable and negotiable. What many consumers fail to grasp is that "negotiable" does not mean that any given agent will immediately cave to all demands.
Give me a town in the US, over 50,000 in population, and I will produce evidence of a variety of advertised compensation models.
What some folks want is the level of service I offer without recognition of what I do and how I have earned my knowledge.
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