Why America’s real-estate brokers are such a rip-off (negotiation, percentage, price)
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.
It is not inexpensive to sell a piece of Real Estate in America in regards to the commission rates compared to the other countries in The Economist list, because United States of America is the World leader in compensations like no other country in the planet when comes to guarantees and protections, while for instance, China is a communist country where there is no private property at all and the government has the right to confiscate everything.
To that point, why would anyone spend money on a fat commission with the bulk of their funds going to faceless bloated entities that add no tangible value to their specific transaction?
Why does a consumer care that agents poor mouth about splits, income, and fat fees, as if the consumer has no alternative service available?
Yeah I am an agent (broker in WA parlance) and the seller pays the commission but you believe what you want. Given that anyone with pulse that can fog a mirror can be a broker/agent I take a “real estate agent” opinion as worthless. But you go!
I will go, am going and have gone!
Just because the commissions are shown on the sellers says doesn’t mean the seller is paying the commission. I honestly don’t know why this is so complicated. The buyer is the one bringing the cash or the loan to the pot, the same pot where the realtors get their commissions from.
Maybe the industry needs to show buyers agent’s commissions on their side of the statement and sellers agent’s commissions on the other side?
Paying it out of the gross proceeds from the negotiated sale of the property. Right?
Cash, yes. AKA the gross proceeds from the negotiated sale of the property. Right?
Neither does anyone else following the thread.
I’m not understanding what you’re trying to point out. Phrase or word it however you would like. I don’t care how it’s shown on the settlement statement, the buyer is paying a higher price on the property because of the commissions. That cost gets indirectly passed on to the buyer, no matter how’s its shown!!!
The buyer gets the whole house and the seller gets the leftover proceeds.
Sellers do not discount off FMV for FSBO.
Buyers might bring in the cash, but the seller has agreed in advance what that fee is.
10 years ago, banks were taking less and agreeing to pay commissions. And sellers were bringing money to closing.
The organized system of selling & buying real estate in the US is working out for both buyers and sellers.
It is not inexpensive to sell a piece of Real Estate in America ...China is a communist country where there is no private property at all and the government has the right to confiscate everything.
So, the UK has no property rights?
Color me confused.
The buyer gets the whole house and the seller gets the leftover proceeds.
Sellers do not discount off FMV for FSBO.
Buyers might bring in the cash, but the seller has agreed in advance what that fee is.
10 years ago, banks were taking less and agreeing to pay commissions. And sellers were bringing money to closing.
The organized system of selling & buying real estate in the US is working out for both buyers and sellers.
The current system also works for the industry.
The system manipulates people into home ownership by making it seem there is less cost to buy in, because once you’re in you're probably going to stay in. If I’m a buyer who isn’t using an agent and I’m buying a house from a seller who is using an agent, you bet your ass I’m negotiating 3% off the sale price after they thought negotiations were over because that’s 3% more I would have to directly pay for the house. So even if a buyer isn’t a licensed agent they can still knock 3% off the sales price by showing it as a seller credit to buyer on the statement instead showing it as buyer’s agent commission. It’s just words, the words can be manipulated too.
So the conclusion is at the very least the buyer definitely is directly paying for their buyers agents commission no matter how it’s worded or shown.
For any buyer not using an agent, you should be entitled to a 3% discount off the negotiated sales price even if you aren’t licensed as long as the listing was advertising a 3% buyers commission. Don’t leave 3% on the table buyers, that’s YOUR money.
Last edited by JPrzybylski07; 09-14-2019 at 12:58 PM..
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.
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.
