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What do you all think is a fair price to pay your realtor? Just curious. How much do you think the guy makes who sells you your automobile? Is not his "fee, commission, pay, hourly rate" built into that negotiation? I think it comes down to credibility.....the person selling you a TV at Best Buy does not work on commission and therefore has a bit more credibility with his consumer even though he/she may be spouting drivel about the television. The Circuit City guy, who may know tons more about TV's has less credibility because why? He works on commission. I would simply like to take the commission aspect out of selling homes ...base it on a flat fee depending upon the value of the home....like everything else.
I disagree.
Way too many people act dronishly when guaranteed a wage.
Many, many more people should be commission paid.
I made this comment on a different thread on city-data but think it applies here as well....
When I read some of the responses in threads like these two things come to mind:
1) Many people don't do a good job researching agents and hire poor performers and take their bad experience and superimpose it to all agents across the board.
2) Many people don't fully understand "Agency" or what their responsibilities are and what their Agent's responsibilities are to them.
I think understanding the roles of the participants and how the process works is the key to a mutually satisfying and successful real estate transaction.
I'm learning new things everyday and in Europe as an employer you do have to pay for gas if an employee lives further than a certain km form the work place, that way the governement encourage employers to take people who live really close by and if the employee moves further than they won't get gas paid for. So different things for different countries.
bentlebee, you keep talking about "Europe" as if it's this little bitty place with all the laws the same.
Could you tell us how many of the countries in Europe have this law and name them?
...I think it comes down to credibility.....the person selling you a TV at Best Buy does not work on commission and therefore has a bit more credibility with his consumer even though he/she may be spouting drivel about the television. The Circuit City guy, who may know tons more about TV's has less credibility because why? He works on commission. I would simply like to take the commission aspect out of selling homes ...base it on a flat fee depending upon the value of the home....like everything else.
Quote:
Originally Posted by MikeJaquish
I disagree.
Way too many people act dronishly when guaranteed a wage.
Many, many more people should be commission paid.
Quote:
Originally Posted by LynnKK
And I agree with you....if all the world was paid strictly on productivity as is a realtor....well, the concept is staggering.
So.... Credibility is NOT the issue?
Interesting. You would be comfortable paying a "...flat fee depending on the value of the home..." for a crooked agent who never goes to school rather than paying a percentage for an agent with credibility?
And how is a "...flat fee based on the value of the home..." different from a percentage of gross sales price? If the flat fee floats up or down based on the value, doesn't if function very similarly to a percentage?
What do you all think is a fair price to pay your realtor? Just curious. How much do you think the guy makes who sells you your automobile? Is not his "fee, commission, pay, hourly rate" built into that negotiation? I think it comes down to credibility.....the person selling you a TV at Best Buy does not work on commission and therefore has a bit more credibility with his consumer even though he/she may be spouting drivel about the television. The Circuit City guy, who may know tons more about TV's has less credibility because why? He works on commission. I would simply like to take the commission aspect out of selling homes ...base it on a flat fee depending upon the value of the home....like everything else.
Good questions, Lynn.
Most auto sales people in my area do not receive a salary. Those who work on straight commission have no guarantee of a paycheck. It's all based on their productivity. The greater the financial risk of getting paid, the higher the reward. Their commissions are tiered, based on the gross profit of the transaction to the dealer. Compensation ranges from 20-30% of the dealer's gross profit.
Dealers are not in the business of buying cars wholesale today, for more than they can be sold, tomorrow. They are in business to make a profit off, every sale. If they can't do this, they don't remain in business.
Sales people work off some sort of financial incentive. That one place calls it incentive versus commission, does not change the outcome.
I am hard-pressed to think of anything that is sold that does not include the cost of marketing/sales in the price. We consumers pay the cost of marketing/selling every product to ourselves ! It's only when we consumers are responsible for direct payment that we feel the need to question the value. And as it relates to all employees and independent contractors, everywhere, your mileage will vary.
The livilihood of salaried employees with full benefits everywhere, depends upon the success of corporate marketing/ sales of the product to the consumer. If no one buyes, no one has a job.
As it relates to real estate, XXX Realty ( licensed in some states) set out to revolutionize the business model and bet the farm doing so. They were among the first to repackage MLS data and make it avalable to consumers, over the internet and they did an exceptional job with it. They wanted everyone to focus on their web site and that would generate inquiries that their agents could turn into sales.
They offered a base salary, health care benefits, a car, mileage allowance and incentive compensation to theiremployees. In other words, they offered certainty of a paycheck and benefits over the very real uncertainty that is typical in the real estate business. And best of all, they rebated a percentage of their commission derived from each transaction back to the buyer and seller. A win-win for everyone, right?
The XXX Realty business model attracted only those agents who could not cover their expenses in the more traditional commissioned sales model. XXX Realty could not expand as originally planned, so that the existing regional offices often cover massive geographical areas and the agents do not know the areas, nuances or the home inventory. They were unable to compete.
Over time, XXX Realty had to seriously cut back on employee benefits. The car was the first thing to go.
Mainstream full service agencies quickly played catch-up and what XXX Realty offered to online consumers was no longer unique. There remained nothing in particular driving business to them, beyond the hope for a rebate and that has not been good enough, thus far.
Last edited by middle-aged mom; 08-07-2008 at 10:14 AM..
I'm learning new things everyday and in Europe as an employer you do have to pay for gas if an employee lives further than a certain km form the work place, that way the governement encourage employers to take people who live really close by and if the employee moves further than they won't get gas paid for. So different things for different countries.
Brilliant plan... I sure want the US government "encouraging" my employer to lives less than X miles from work. Wouldn't we all love our government, through our employers, to determine where and how we live?
Government regulation of business and personal choices is rarely a good idea. Sure the government needs to protect consumers, but there is a fine line of protecting and controlling (no trans fats for you today, no sugar or caffeine tomorrow).
A buyer can negotiate for any service or product they want. No one can force a price on you in real estate or any other business. Some people post about their experiences and how they got cheaper service that was still okay... GREAT for you! But cheaper is not always better and there is often a tradeoff between service/experience and price.
There are plenty of $25/hour attorneys you can use... and there are $2500/hour attorneys/ You can not tell me that the service difference between them, of a .5% and a 3% Realtor are going to be the same. Sometimes all you need is the cheap alternative (I wouldn't take a $2500/hour attorney to fight a parking ticket, and I would probably just do it myself) but there are plenty of times when the service and experience of a Realtor who has taken hundreds of hours of education, advanced training, years of experience and many transactions is priceless.
I disagree.
Way too many people act dronishly when guaranteed a wage.
Many, many more people should be commission paid.
I have debated paying my employees with salaries or with commission. Paying commission is more likely to attract those that will committ fraud, lie or cheat because they have something to gain.... but paying a salary attracts the lazy and uncaring because they have no financial interest in the transaction being completed.
It is about proper screening and training of people in the field. We all know car salespeople, Realtors and loan officers that would sell their parents a pile of garbage if they could make a commission on it. But we also know the guy who is making $10/hour and sleeping on the job because as long as they don't get fired, they make $400/week whether asleep or awake.
Even if we were on pure salary, there would always be lying, cheating employees willing to do anything just to chalk up another sale. It is up to the government to set decent minimial standards to protect consumers, the employer to provide training and oversight to make sure that consumers are getting quality service and most importantly for consumers to research and pick someone that will provide the value they seek.
1, Glossy graphics with professional photographs. Agent to keep my outside box full of graphics at all times.
2. Advertising on all websites, your brokers website & personal website.
3. A virtual tour
4. Newspaper ads
5. I want my agent to immediately answer my email & their cell phone 24/7.
6. The agent should have a staff to handle my immediate needs.
7. A Realtor open house / luncheon.
8. Open houses every 3rd Sunday.
9. Feedback on showingss.
Agent: No problem I believe we can do the above and it costs you nothing until we sell your home.
Seller: Can you cut your commission in half ? I don't see why I should pay your full commisssion.
I have debated paying my employees with salaries or with commission. Paying commission is more likely to attract those that will committ fraud, lie or cheat because they have something to gain.... but paying a salary attracts the lazy and uncaring because they have no financial interest in the transaction being completed.
It is about proper screening and training of people in the field. We all know car salespeople, Realtors and loan officers that would sell their parents a pile of garbage if they could make a commission on it. But we also know the guy who is making $10/hour and sleeping on the job because as long as they don't get fired, they make $400/week whether asleep or awake.
Even if we were on pure salary, there would always be lying, cheating employees willing to do anything just to chalk up another sale. It is up to the government to set decent minimial standards to protect consumers, the employer to provide training and oversight to make sure that consumers are getting quality service and most importantly for consumers to research and pick someone that will provide the value they seek.
I agre that it is difficult to find a good payment plan...commission or salary. Maybe combine them....
I also agree that how the government is trying to make rules like where I'm from is bad for employers and freedom isn't so much there anymore and that is why many self employed people quit and move out of the country...too many laws.
When another poster wrote that $ 60.- for a hour being a witness in court is only for his salary and not for gas...is not how I look at it. The $ 60.- is covering all expenses for whatever you might want to use it for...so you time to get there, gas, etc....he might think it is only for one hour, but that is the same as thinking that a gallon of milk is just for paying the milk, it is also for the packaging, production, etc....all cost are incl. in the price.
I also see that people on cimmission do weird things like when I moved here and went to Circuit City...you couldn't walk in just one isle without being asked 2 or 3 times if some one could help you, when they stopped paying commission, you can't find one to help you.
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