U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-09-2019, 05:12 PM
Status: "WE Can Do Better!" (set 9 days ago)
 
Location: Cary, NC
37,282 posts, read 64,710,428 times
Reputation: 37437

Advertisements

Quote:
Originally Posted by Pyramidsurf View Post
The last house I bought cost the seller $60,000 in commissions plus closing costs to sell. It was on the market for two whole days. I'd love to hear a justification for how that is reasonable.

If you add the cost to sell my previous home, a 4.5% commission, selling and buying a new home cost me just about $85,000 in commission ($60,000 + $25000) costs alone.

Your first sentence contradicts your last sentence.



I could agree that it cost YOU $60,000 in bloated price paid because your seller locked you into a PHAT commission structure.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 09-09-2019, 05:38 PM
 
1,738 posts, read 2,629,064 times
Reputation: 2200
Quote:
Originally Posted by MikeJaquish View Post
Your first sentence contradicts your last sentence.



I could agree that it cost YOU $60,000 in bloated price paid because your seller locked you into a PHAT commission structure.
I bought a house. The seller was charged 60,000 in commissions. The money came from one place in the sale and that is from my pocket.

I sold a house. I paid 25,000 in commissions.

You're intentionally being obtuse instead of addressing the real issue.

And before you try to blame the buyer or seller, the houses in my area were all listed by agents that were part of the same association.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 05:43 PM
 
287 posts, read 128,410 times
Reputation: 616
Quote:
Originally Posted by Pyramidsurf View Post
I bought a house. The seller was charged 60,000 in commissions. The money came from one place in the sale and that is from my pocket.

I sold a house. I paid 25,000 in commissions.

You're intentionally being obtuse instead of addressing the real issue.

And before you try to blame the buyer or seller, the houses in my area were all listed by agents that were part of the same association.
All depends on your side of the transaction. Maybe I am slow, but I don’t see where the commissions paid by the seller when I am a buyer as costing me anything. The only exception to that would be if the seller pumped his price 6% (or whatever commission he is paying) above market value AND I was dumb enough to agree to pay 6% above market value. If you were dumb enough to do that, you might have a legitimate claim that you paid his selling commission cost.

In answer to your question as to how $60K in commission for a house that was on the market two days is reasonable, let me give your a real life example. In June of this year, I engaged a real estate agent to sell a large piece of property with two homes on it - land heavy and I didn’t want to mess around with a buyer who needed financing. I paid 6% commission and she brought a full price CASH offer to the table 6 days after listing that closed in 35 days with a buyer she found thru her extensive network of high net worth individuals. Was it worth 6% - YES - I would do it again in a heartbeat. Not only did I get the asking price I wanted but I got a quick close with virtually no contingencies. I figure I paid her about $500 to do the listing work and show the property to the buyer and I paid the rest of commission for her network of ready buyers who had capacity to close. Like an attorney I knew once said, 10 cents for the call, $5000 for knowing who to call.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 05:50 PM
 
Location: San Angelo, TX
2,008 posts, read 3,314,643 times
Reputation: 2472
Flat fee. You’re welcome.

Next thread.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:09 PM
 
1,738 posts, read 2,629,064 times
Reputation: 2200
Quote:
Originally Posted by Spokaneinvestor View Post
Maybe I am slow, but I don’t see where the commissions paid by the seller when I am a buyer as costing me anything.
Does money come from anywhere but the buyer in a standard transaction?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:13 PM
 
631 posts, read 323,227 times
Reputation: 943
We just sold our home. If the agents took less commission the buyer would not have paid so much.

The buyer pays the commissions regardless of how it's worded,
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:31 PM
 
287 posts, read 128,410 times
Reputation: 616
Quote:
Originally Posted by movedintime View Post
We just sold our home. If the agents took less commission the buyer would not have paid so much.

The buyer pays the commissions regardless of how it's worded,
The buyer only pays the commission if they pay above market. If they pay market value, then the seller pays the commission. I can tell you this, I would never lower a price on a property I was selling because I negotiated a lower commission - that would be incredibly stupid.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:33 PM
 
1,738 posts, read 2,629,064 times
Reputation: 2200
Quote:
Originally Posted by movedintime View Post
We just sold our home. If the agents took less commission the buyer would not have paid so much.

The buyer pays the commissions regardless of how it's worded,
I guess I can restate that selling my house didn't cost me 25K. It cost the buyer. Either way, it took 85K into the pockets of agents to get my house sold and new one purchased.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:34 PM
 
287 posts, read 128,410 times
Reputation: 616
Quote:
Originally Posted by Pyramidsurf View Post
Does money come from anywhere but the buyer in a standard transaction?
The money goes from buyer to seller. The seller pays the commission, other costs of sale, possibly a mortgage and keeps the balance. If you say to a seller, “I will pay you market value for your home and a 6% bonus to cover your agent’s fee” then the buyer is paying the commission. Otherwise, the seller pays the commission.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-09-2019, 06:38 PM
 
1,738 posts, read 2,629,064 times
Reputation: 2200
Quote:
Originally Posted by Spokaneinvestor View Post
The money goes from buyer to seller.
So that means the buyer is paying it.

You might have a leg to stand on if commissions were an entirely separate transaction outside of closing. However, it is not. Commissions and closing costs are skimmed right off the top of the buyers money and go into the agents pockets.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top