Posted on: 24th Jan, 2010 07:18 am
As a seasoned buyer, I know that the 6% Realtor Commission actually comes out of the equity of the home. This lie that Realtors tell buyers that the Seller pays their commission is a joke to those who understand how things really work.
Why aren't more buyers and seller waking up to this PRICE FIXING the Real Estate industry has been able to get away with and how can consumers stop Realtors from getting away with taking 6% of the equity out of homes for doing something a monkey can do?
Why aren't more buyers and seller waking up to this PRICE FIXING the Real Estate industry has been able to get away with and how can consumers stop Realtors from getting away with taking 6% of the equity out of homes for doing something a monkey can do?
Tony,
Do you offer your buyers any Buyer's Agent rebate? Do you offer to share in some of this below outragious extraction of the tax free equity of a home? If so, I stongly advise consumers use you!
$300,000 @ 3% = $9,000
$400,000 @ 3% = $12,000
$500,000 @ 3% = $15,000
$600,000 @ 3% = $18,000
$700,000 @ 3% = $21,000
$800,000 @ 3% = $24,000
$900,000 @ 3% = $27,000
$1,000,000 @ 3% = $30,000
A buyer can simply do an online search if they live in one of most states that allow this savings of Realtor Rebate, Buyer's Agent Rebate, etc. They will discover littereally thousands of very experienced and professional realtors who offer this huge savings.
There are sites like All Realtors Suck and Frankly Realty dot com where uneducated buyers can go to learn all about realtors and realtor rebate.
Do you offer your buyers any Buyer's Agent rebate? Do you offer to share in some of this below outragious extraction of the tax free equity of a home? If so, I stongly advise consumers use you!
$300,000 @ 3% = $9,000
$400,000 @ 3% = $12,000
$500,000 @ 3% = $15,000
$600,000 @ 3% = $18,000
$700,000 @ 3% = $21,000
$800,000 @ 3% = $24,000
$900,000 @ 3% = $27,000
$1,000,000 @ 3% = $30,000
A buyer can simply do an online search if they live in one of most states that allow this savings of Realtor Rebate, Buyer's Agent Rebate, etc. They will discover littereally thousands of very experienced and professional realtors who offer this huge savings.
There are sites like All Realtors Suck and Frankly Realty dot com where uneducated buyers can go to learn all about realtors and realtor rebate.
I rest my case!
I am a Realtor and I'm also an Engineer, a pilot, etc. I think 6% is outrageous for Realtor fees but I know why it is so high and how it can be reduced. Fees are high because there are too many Agents. Most agents spend much more time marketing themselves than marketing their clients homes. They have to to make a living. A very simple fix would we for the state agency in charge to limit the number of Realtor licenses available. If there was a limited number of agents, then agents would have a continuous stream of business and could charge much less per transaction. I could easily sell a house for $500/listing if I could sell 10/month which I could easily handle if they were available. Unfortunately, limiting the number if licensees is not exactly free market/capitalism.
Having been on both sides of the Realtor fence, I know that it is not a scam. Everyone is free to sell their homes themselves. Why don't they. There are discount listing services and 1% realty firms available. Why don't they own the market?
Having been on both sides of the Realtor fence, I know that it is not a scam. Everyone is free to sell their homes themselves. Why don't they. There are discount listing services and 1% realty firms available. Why don't they own the market?
BiBi and Man o War, you are completely naive if you think realtors do not earn the 5-6 % . These days most closings are co-brokered . So the commission is down to 2 1/2 - 3 %. Now, this commission is paid to the Broker who in turn will pay his salesperson a percentage of the commission. Usually 50-75 % depending on the broker. So , on a $ 200,000. home @ 5% = $ 10,000.
If co brokered = $5,000.
$ 5,000. x 50% = $ 2,500.
At this rate I would have to sell -30 houses per year to make a average living. That is 2-3 houses per month. You are both directing your frustration at the wrong place.
Why not take a look at the banks ? They are making 5-7 % on a yearly basis. Simply for giving someone a mortgage.... using someone elses money ( depositors ). Thats what you should be looking at !
If co brokered = $5,000.
$ 5,000. x 50% = $ 2,500.
At this rate I would have to sell -30 houses per year to make a average living. That is 2-3 houses per month. You are both directing your frustration at the wrong place.
Why not take a look at the banks ? They are making 5-7 % on a yearly basis. Simply for giving someone a mortgage.... using someone elses money ( depositors ). Thats what you should be looking at !
If selling real estate is SOOO easy as some are stating here, why do they banks themselves use realtors?? Are some of you reeeally suggesting, Bob the engineer or Sylvia the accountant sell her property on her own? You must be highly unaware of the complications that transpire from real estate transactions.
I really thought the internet would be the end of Real Estate "agents"... much as it was the demise of Travel Agents.
Title company lawyers do ALL of the paperwork... How do I know? I sold by owner... simple transaction.
Title company lawyers do ALL of the paperwork... How do I know? I sold by owner... simple transaction.
I put Realtors at the same level as a lawyer. They are both parasites the only difference is a Lawyer actually needs an education. Realtors (at least in Canada) do absolutely nothing for the money they make. You sell a 400K home and they make over 20K in commission. They do absolutely nothing for it. I would expect my realtor to do my yard work and clean house once per week. No wonder there are so many realtors, its easy money.
heres what an agent does...first y drive a stake in the ground with a sign attached, then they drive away in their Mercedes...call in the ad to MLS...and then take 6% of your equity....SOLUTION...offer the buyer a reasonable flat fee or negotiate that fee
To the bashers of real estate professionals:
Until you become thoroughly educated, obtain your license, and practice real estate (ie: read and prepare an entire listing contract, negotiate a purchase contract, put your license on the line with each and every transaction to assure legal compliance and mandatory disclosures), shut the hell up! Unlike every other profession who gets paid by the hour, REALTOR(S) work for free 40% (if not more) of the time and ARE ONLY paid when a transaction closes. There are usually two agents in any given transaction. Therefore, the 6% commission that you seem to be complaining about, even though you appear to be a jaded buyer (is paid for by THE SELLER and is totally negotiable). Even more importantly, the negotiated commission IS SPLIT WITH THE OTHER AGENT (3% & 3%). Try earning a living in this economy. For the retard who referred to agents as "any monkey could do their job", is an absolute moron who most likely couldn't fight their way out of a wet paper bag. How ignorant *
Until you become thoroughly educated, obtain your license, and practice real estate (ie: read and prepare an entire listing contract, negotiate a purchase contract, put your license on the line with each and every transaction to assure legal compliance and mandatory disclosures), shut the hell up! Unlike every other profession who gets paid by the hour, REALTOR(S) work for free 40% (if not more) of the time and ARE ONLY paid when a transaction closes. There are usually two agents in any given transaction. Therefore, the 6% commission that you seem to be complaining about, even though you appear to be a jaded buyer (is paid for by THE SELLER and is totally negotiable). Even more importantly, the negotiated commission IS SPLIT WITH THE OTHER AGENT (3% & 3%). Try earning a living in this economy. For the retard who referred to agents as "any monkey could do their job", is an absolute moron who most likely couldn't fight their way out of a wet paper bag. How ignorant *
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