Fixed real estate commissions look to be "unfixed" by lawsuit settlement
- Thread starter BoxsterCy
- Start date
The only reason I even use a buyers agent is because I want my realtor buddy to make money on it. But if I have to start paying a buyers agent, I’m dropping it like a bad habit.
I’ve bought enough homes that I know I don’t need representation. But if you’re not experienced in homebuying, they can be useful for sure.
I’ve bought enough homes that I know I don’t need representation. But if you’re not experienced in homebuying, they can be useful for sure.
Again, just depends if you've done it before. Strongly recommend having one if you don't know what your doing.
Zillow more/less made the buyers agent worthless if you have any basic knowledge. Industry refuses to adapt and is hanging on by a thread.
There are some good realtors who help advise you how to maximize your home's value for sale, what to put some money into and what not to. And can be smart about marketing and negotiation.
And there are some good realtors that help you avoid overpaying for a house, and identifying possible problems you might not recognize.
And all of that is worth something. But it ain't worth 7% of $400k.
My old house sold for just over $300k, agent made $20k. She did a decent amount of marketing work, drone photos, etc. I would guess she had about 40 hours of work all in, and that is probably generous. So $500 per hour; nice work if you can get it.
Also, that's about 10% of realtors in my experience. The vast majority just want to move product, get a deal done regardless of anything, and rack up commissions and on to the next one.
The Economist had a major article about this a year or 2 ago. Most countries realtors (estate agents) make 1.5-2%. In the US it was 6-7%. Just an absolute monopoly - if it was 4 nationwide companies that did it rather than 5000 local ones, the SEC would have trustbusted it decades ago.
Burn them all down.
And there are some good realtors that help you avoid overpaying for a house, and identifying possible problems you might not recognize.
And all of that is worth something. But it ain't worth 7% of $400k.
My old house sold for just over $300k, agent made $20k. She did a decent amount of marketing work, drone photos, etc. I would guess she had about 40 hours of work all in, and that is probably generous. So $500 per hour; nice work if you can get it.
Also, that's about 10% of realtors in my experience. The vast majority just want to move product, get a deal done regardless of anything, and rack up commissions and on to the next one.
The Economist had a major article about this a year or 2 ago. Most countries realtors (estate agents) make 1.5-2%. In the US it was 6-7%. Just an absolute monopoly - if it was 4 nationwide companies that did it rather than 5000 local ones, the SEC would have trustbusted it decades ago.
Burn them all down.
July - but the practice has already started in some areas, at least here in Iowa.
I dont have enough time to go on that tangent... ISU basketball game at 8pm tonight.
So if buyers are paying for their own realtors, does that mean that the sellers only paying 3% to sell their house now?
As a Broker for my own Realty, I would negotiate the commission which was often 3-4% (Though in one case it was 10%, and thank God what a mess!). After the market went down I sold the company 15 years ago and my blood pressure is better. Realtors had become self-serving and backstabbers of fellows in the business. I can't say I recommend a realtor in my area now but at best they are a necessary evil.
And it is pronounced: REAL-tor not real-IT-tor just a pevee.
lots of sad realtors on twitter. sounds like they need to learn to code or weld
Can say realtors are "maybe" worth it depending on the situation, many are facilitators, and many title companies and banks are helpful in that regard if you swing your purchase. But, finding the right homes without pre-listing agreements is very difficult.
They carry errors and omissions insurance for a reason, but today it seems the one taking the risk is the buyer assuring they can make the (average 7.77% on a 320k, 30-year mortgage, taxes, insurance, and interest) $2,7000/mo. payment.
I'll believe it when I see it last. They'll all join a new association and go back to 6%. Unbelievable gross commissions for decades. And talk about shooting fish in a bucket the past 5 or 10 years. NO service after the sale/purchase. Maybe get a doormat at signing. Insulator for your outside faucet.
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It's always seemed wild to me the sheer # of realtors out there, or people that change careers to real estate.
Like, isn't there only so many homes, and only so many people willing to buy/sell?
Many realtors see listing/ buy/sell as part of their business model. Many get in and find the best deals on rental and other properties as they get to the stage of "listing buy/sell" as a part of the mix. Some operate title companies and do new construction. I never wanted part of the acquisition as income (landlord) but did do many new builds with my partner. As an owner, you also get a cut of realtors operating under your Brokerage. With a background in wildlife/botany, I had sufficient knowledge to get several people on the staff of my sideline landscaping company.
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How long will it take for the "market" value of homes to decrease since the market value no longer has to include the 3% that the buyer's realtor was receiving as a commission. If the market value of homes does not drop to reflect this saving the seller will realize, is not the cost of purchasing a home actually going to increase (as the buyer now has to pay the broker separately and not have this cost included in the purchase price.)
Or are buyers going to ask the seller to compensate the buyer's realtor still so that the buyer does not have to come up with the cash to pay his own realtor, and then can include that cost as part of the mortgage. And we are back to including the value of the buyer's realtor in the market value of the home.
And with the upcoming confusion, who will know the true "market" value of a home?
Or are buyers going to ask the seller to compensate the buyer's realtor still so that the buyer does not have to come up with the cash to pay his own realtor, and then can include that cost as part of the mortgage. And we are back to including the value of the buyer's realtor in the market value of the home.
And with the upcoming confusion, who will know the true "market" value of a home?
Does this mean Charter was in the right side of history? If I remember correctly he did flat fee plus smaller commission.
Found the realtor in the emojis
IMO having a buyer's agent depends on circumstances and if they're good. We've moved 3 times in the past 12 years. First move - we knew the area, I found the house. They were also the listing agent so....oh, well. With our second move, having a realtor to help us look for a home was a major help. We weren't from the area. She knew what homes would be coming on the market and had some ideas of who she could contact that might decide to sell. Third move was to another state. We had a good idea what area we wanted to move to and I found most of the homes we looked at. We ended up building a new home and in the end appreciated having her to deal with some things. So I'm kinda "meh" with that one.
