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There’s no more effort between a $250k home and a $500k home for a listing agent.
None.
And you’ve given no explanation as to why when there’s the exact same gross profit that a realtor would take twice the proceeds to list.
I’m not opposed to paying the buyers agent, it’s a tough world out there, but 3% to the listing agent for what is a handful of hours at the most.
Just another day on CityData Real Estate Forum...
It is a common refrain on this forum:
"I don't know what I am doing. And, I'm too lazy to do my homework and dumb enough to pay X% commission, and it is the agent's fault that I do dumb things."
Last edited by MikeJaquish; 03-31-2021 at 05:18 AM..
Just think about how much that is vs the hours worked for that.
Surgeons don’t make that kind of money per hour.
$50k selling price vs. $500k selling price - there is no fair way to charge the customer for the realtor's effort other than a percentage.
It's not about the effort of the realtor or about the hours spent on average (that's a discussion about percentage rate IMHO), it's more about the fairness to the customers. If it's not proportional then either the $50k customer pays a lot more, or the $500k customer gets a very good deal.
And why should a waitperson make a 20% tip? Whether a party of two spends $80 or $160 for a meal (same number of courses) at the same restaurant, why should one waitperson receive $16 and the other make $32 for the same amount of work?
I draw the line on this type of mentality..........if you think like this, stay home/make your own burger/serve your own drink and save all the money!
Wait staff makes a nominal wage (it was $2 a hour for years, I think it is $5.13 in my state now). The tips also routinely get shared among hostess/table bussing/barback staff (lesser percentage).
Going out to a sit down restaurant is a luxury, everything costs more than fast food or cooking at home. If you don't feel you should tip, then stay home because that server didn't show up to work that day to work for you for FREE!
I eat out nightly, the tip starts at 20%.......I went to a new place the other night and basically ordered everything the waitress recommended, she was 100% spot on, the food I ordered was excellent. I think I tipped 35%.
New Years Eve 2020, went to a restaurant I patronize almost weekly, I rarely make reservations even on big holidays. Hostess seats us outside, basically a parking lot view but I asked for my regular server. She came out and asked "WTH" are you doing out here! Then says pick up your stuff and hauls us back into the restaurant and seats us at a booth. She scolds the hostess and says if anyone asks for me don't put them out back!
If the 20% holds you back, just stay home.
Being this thread is based on real estate, I do have an issue with 6% of the gross sale. Plenty of people in the last slowdown came to the closing with a check and the only ones leaving with a profit was the realtors!
But again, like restaurants if you don't want to pay the commission then sell it yourself!
Just another day on CityData Real Estate Forum...
It is a common refrain on this forum:
"I don't know what I am doing. And, I'm too lazy to do my homework and dumb enough to pay X% commission, and it is the agent's fault that I do dumb things."
But Mike you do have to acknowledge that in a hot market like this one if you put a high school kid on the corner waving an open house sign they could likely get a full price offer!
Realtors are worth every penny IF they upsell the property and get the owner above market value. Realtors are famous for doing this on their own homes. I usually joke and say if you are buying a realtors personal home you are getting it for whatever it is going to be worth in 3 more years.
Neighbor was thinking of selling with a friend of his mothers, I inquired about the price point. He told me and I (not a realtor) thought it was 100K light. I told him to at least reach out to a neighbor (within eyesight of his house) and she had already set 2 records in the community for high sales. She got him 98K MORE than the list price he was considering with the first realtor............and it sold in 1 day.
Realtor one- useless, using old MLS data to price the house for a quick sale.
Realtor two- knew the market, knew the past sales were outdated and got a significantly better price.
Only issue to me? If it sold for full price in one day, it probably should have been listed 50K higher.
But Mike you do have to acknowledge that in a hot market like this one if you put a high school kid on the corner waving an open house sign they could likely get a full price offer!
Realtors are worth every penny IF they upsell the property and get the owner above market value. Realtors are famous for doing this on their own homes. I usually joke and say if you are buying a realtors personal home you are getting it for whatever it is going to be worth in 3 more years.
Neighbor was thinking of selling with a friend of his mothers, I inquired about the price point. He told me and I (not a realtor) thought it was 100K light. I told him to at least reach out to a neighbor (within eyesight of his house) and she had already set 2 records in the community for high sales. She got him 98K MORE than the list price he was considering with the first realtor............and it sold in 1 day.
Realtor one- useless, using old MLS data to price the house for a quick sale.
Realtor two- knew the market, knew the past sales were outdated and got a significantly better price.
Only issue to me? If it sold for full price in one day, it probably should have been listed 50K higher.
"Full Price Offer" is SOOOOOO 2017.
And, the thread basis is really just routine whining about consumers willfully and blindly choosing a 6% commission over other alternatives.
I agree with the premise of the original post. Real estate commissions are a real racket. Hence the recent antitrust investigation by the DOJ into the shady practices of the National Association of Realtors. That should lead to some changes that will make the industry a bit more honest in the near term. But in the long term, it should be an hourly-based fee like almost any other professional service.
But Mike you do have to acknowledge that in a hot market like this one if you put a high school kid on the corner waving an open house sign they could likely get a full price offer!
Realtors are worth every penny IF they upsell the property and get the owner above market value. Realtors are famous for doing this on their own homes. I usually joke and say if you are buying a realtors personal home you are getting it for whatever it is going to be worth in 3 more years.
Neighbor was thinking of selling with a friend of his mothers, I inquired about the price point. He told me and I (not a realtor) thought it was 100K light. I told him to at least reach out to a neighbor (within eyesight of his house) and she had already set 2 records in the community for high sales. She got him 98K MORE than the list price he was considering with the first realtor............and it sold in 1 day.
Realtor one- useless, using old MLS data to price the house for a quick sale.
Realtor two- knew the market, knew the past sales were outdated and got a significantly better price.
Only issue to me? If it sold for full price in one day, it probably should have been listed 50K higher.
When I try to find a good realtor or one that has a great track record, they usually end up being a small group of agents under one umbrella, and since my house has a lower value, I'm concerned that I'll get one of their employees.
And, the thread basis is really just routine whining about consumers willfully and blindly choosing a 6% commission over other alternatives.
Mike,
For informational purposes, would you be willing to outline those "other alternatives"?
Understand that I have no problem paying a commission to the agent who earns it, but I retain the right to negotiate that commission as I see fit. It's then up to the agent to decide if that's what they want to work for or not. Our transactions are relatively hassle free, as we've done it many times over and always have our ducks in a row when we're ready to buy or sell, so the agent's job for us is a relative'y easy one. I realize that's rarely the case, however.
We sold our house in 2020 and interviewed five agents before deciding on one. Since we would be out of state during the selling process it was especially important to us to know the agents beforehand. When the question of commissions came up, four of them quoted between 5% and 5.5%. Only one came in at 6% and quickly came down to 5.5% when told of the other agents' commissions.
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