Realtor's commission...?

[mrsilv04]

Originally Posted By: mechtech2
I'm sure the realtor is used to 6%, or something like that . The 3% is a loss to him.


You don't understand. The 6% is when the buyer has a realtor and the seller also has a realtor.

2 realtors x 3% each = 6%.

However, I have seen that 6% reduced when the buyer and the seller use the same realtor.

 

[JHZR2]

mechtech has got it right. In some situations there may be more work on a $2M property than on a $200k property, but if a home is a home, then why is a $2M home THAT much more work? It is not.

I'd tell him to go walk. Everything is negotiable, the realtors commission is too.

I love the realtor commercials on TV. They are your best bet to figuring out to buy a home?!??!?? The same people that drummed into folks that buying homes was the best investment they could make and that it would go up indefinitely?!?

The realtor MAY earn their keep, but if they are, they are reviewing documents, making sure they are kosher and in your best interest. I find it ridiculous that (unless the same realtor is working both ends of the deal) that the seller has to pay for the buyer's agent's work.

Let him walk or ask for 3% higher.

 

[cryption]

It seems to me that since the guy contacted you PRIOR to getting a Realtor, you could call him back and deal with him directly. Or wait for another buyer.

If they want the land so bad, the buyer will cover the fee. Why would he have gone with a Realtor in the first place unless he was helping someone out - considering he had already made contact.

 

[Kestas]

The last couple posts brought up an issue that bothers me as well. 6%??... of what is often not only a persons entire wealth, but sometimes even more in a mortgage situation!

For houses that cost $100K to $200K, that amounts to $6K to $12K in fees. I know how hard I have to work for that kind of money, and I'm a professional with a lot of schooling! I don't see anywhere near that kind of work going into a realty transaction. It's no wonder there was a 3X explosion of realtors some four years ago. Everyone wanted a piece of that action!

Anyhow, I agree with above posters. If someone was interested in buying your property, and he exists, then why didn't he contact you directly? I had some property for sale, and the buyers did their best to avoid usng realtors, resulting in worthwhile savings to themselves.

 

[cryption]

Keep the land, put a trailer house on it, and rent it out. Charge whatever the going rate is in your area and pocket the money (assuming you own the land)

I read an article in the WSJ today that said most Americans are starting to rent - since the market is just so awful. Buying a house has so many fees, taxes, home owners fees etc.

I am one of those people.

 

[Kestas]

I was shocked to see the State of Michigan added a 1% transaction fee when we sold a house. I understand the fees are going to get worse.

 

[cryption]

The govt. is hurting for money. They will get it out of you any way they can.

 

[dkryan]

Originally Posted By: SteveSRT8
I can't understand why anyone would try and cut out the poor Realtor.

He brought the buyer in, and the seller pays. That's the way it works.

When I bought my current home the deal was discovered by my wife online, and we still used our Realtor. We didn't pay him, the seller did. And he earned every penny.

I think it is unreasonable to expect them to do that for nothing.


If your wife found the deal online, exactly how did your realtor "earn every penny?" Of the SELLER's money, no less?

YOU brought the realtor into the hunt AFTER your wife found it online. Those of us with more brains and/or who are less desperate to sell would have said, "you wanted the realtor involved, you pay him."

 

[ediamiam]

You've seen the kind of cars realtors driver around in? They have a lifestyle they need to support.

 

[Studebaker]

Everyone is an expert.

Everyone justifies what THEY make, but claim Realtors, Doctors, attorneys, mechanics are thieves.

My wife had her appendix out. The doctor charged a fortune. Maybe I should have done it myself.

OJ, first time around, paid Johnny C a fortune. He didn't HAVE to use an attorney. Look at the money he would have saved.

Why do people go to the Buick dealer to buy a 2 yr old Buick? They can buy one off someones front lawn in the hood. probably save a few bucks. Why do dealers charge more?

Why do people use Realtors? Because they want representation.
Got a house? The neighbor next door sold his house for $100k. He paid a 6% commission, netting $94,000. You have the exact same house. You are going to do it yourself. Are you going to sell it for $94,000? Or are you going to be greedy and charge $100k? The buyer expects to save 6% if buying from owner. The seller expects to put 6% in his pocket.
Next time you need medical help, read a book and don't pay those thieving doctors.
Going to court? Skip the attorney.
Paying 20K for a used car? Skip the dealer and pay the owner the same amount.
Selling your house? Do it yourself. If you get sued, you can represent yourself in court.
Buying a property? You don't need those crooked bankers. Go out back and dig up those money jars.

 

[AuthorEditor]

Sounds like there are some realtors joining in on the discussion. I'm sure there are some wonderful realtors in the world who work very hard for their clients, but this is a case where the realtor did absolutely nothing and wants a 3% fee for doing nothing. The buyer contacted the seller first, then brought the realtor into the mix. If the buyer so desperately wants that realtor, he can pay the fees. To me its a no brainer--if there is no service provided, what is the fee for?

 

[IndyIan]

Originally Posted By: AuthorEditor
Sounds like there are some realtors joining in on the discussion. I'm sure there are some wonderful realtors in the world who work very hard for their clients, but this is a case where the realtor did absolutely nothing and wants a 3% fee for doing nothing. The buyer contacted the seller first, then brought the realtor into the mix. If the buyer so desperately wants that realtor, he can pay the fees. To me its a no brainer--if there is no service provided, what is the fee for?

+1 I'm sure some realtors are good but it seems many are about as helpful or trustworthy as car salesmen. I don't recall the exact wording on the agreement we signed with our realtor, we used the sellers agent, but it seemed they couldn't be held liable for anything they messed up, and we still paid a real estate lawyer do a title search on our property so I don't know what the guy did, other than telling us to low-ball the seller, she needed the money quickly and he was tired of listing the property... Nice guy eh!

 

[pottymouth]

I can't believe someone would compare surgery to a real estate transaction.

To the OP. As has already been said, counter offer with a higher amount that covers the agent's fee. The potential buyer felt he needed the agent's help, let him pay for it.

 

[tonycarguy]

It's possible the buyer brought in an agent because he/she wasn't comfortable doing a property transaction solo.

Anyway just have them write up the offer, then counter with your price + $1300 for the commission. It's really simple -- if you can't agree on price then move on.

 

[The_Jeff]

Tell the Realtor (tm) you want him to take you to lunch on his dime.

The end.

Though, seriously, step up your game. Print out a pic of the school on some posterboard from kinkos and nail that up on your for sale sign. Advertise on craigslist and other free sites.

 

[JHZR2]

Originally Posted By: Studebaker

Why do people use Realtors? Because they want representation.



So what is the realtor representing exactly besides their commission? I know it is different from area to area, but in my area, it is typical to have a lawyer hired for the documents. if this is the case, what is the realtor doing? It would be one thing if they verified that the docs were boilerplate and standard at least, but that is the lawyer's job.

A realtor is a middleman that makes a relatively large sum of money for very little skill. A lawyer is similar, except that the "Lawyers' Monopoly" makes the system so backwards that the common person cannot effectively use the system if needed.

Doctors, while grossly overpaid for MOST of their actions, do have some specialized knowledge. You are right that it can be DIY in many circumstances - why do we now have nurse practitioners and physicians assistants? Because the medicine required for many things is so tough? No. But a surgery is different in that it truly is not DIY, requires a large number of trained people, etc. For some routine actions, a trained monkey could do most parts, so it is overpriced, but there is still some skill and capability involved.

I cannot see any significant value that the realtor brings to the table besides access to their MLS system... and that is worth $6000 per $100k transacted?!? How is doing comps in MLS 5x more of a task and worth 5x as muchfor a $500k home as a $100k?

 

[mrsilv04]

Originally Posted By: Studebaker
Everyone is an expert.

Why do people use Realtors? Because they want representation.



Fine. If the buyer wants "representation", then HE can pay for the "representation" that he hired... and not expect me to take 3% less on the deal.

The lawyer that I'll be using to draft the paperwork is a lawyer with a well respected, well established local firm.

This is my stance on the issue. If the realtor is dumb enough to call me back, this is what he's going to hear. He's working for the buyer, so the buyer can pay his fees.

If the realtor hadn't been such a complete jerk when I mentioned that he take a 2% commission instead of his stated 3%, he might of had a signed sales contract by now. But his rude response made me think about the whole deal in a completely different way.

A lesson to be learned here is that 2% of something is always going to be more than 3% of nothing.

And right now, the realtor is at 3% of nothing.

 

[SteveSRT8]

your response was...?

Equally rude.

The attitude that "no one should make any money off me" is childish and ignorant. And I mean ignorant of the way business works.

 

[cryption]

If in were in OP's position I would have already told them I'm firm on the price, if the Realtor wants commission buyer can pay it. The OP wasn't rude at all. If anything, he's being very accommodating considering how they are wasting his time.

Profitable businesses weren't made on please and thank you.

I REFUSE to use a Realtor ever again. The house we are in now was such a pain in the [censored] to get in to. At one point I told the owner that I never expected it to be so hard to give her my money.

I deal directly with the owner now, and the house I'll be moving into mid-November has been a much smoother transaction. Just too guys making a deal over a handshake. Say what you will, but I've never been burned dealing directly with an owner, and am always irritated buying from dealerships / realtors / salesmen etc.

The dealership experience I had on Monday, for example, has made my limit my hunt for a truck to private party only.

 

[mrsilv04]

Originally Posted By: SteveSRT8
your response was...?

Equally rude.

The attitude that "no one should make any money off me" is childish and ignorant. And I mean ignorant of the way business works.



What part of this was "equally rude"?

And thanks for referring to me as childish and ignorant.