$1.8 billion mega-verdict against National Association of Realtors.

[hallett21]

Competitive sales is based upon commission 99% of the time. I think you’d see a flat rate before an hourly rate.

Otherwise they’d charge you an hour every moment they thought about your property. And then what happens when it doesn’t sell?

 

[Bakotrash]

I have bought and sold homes without an agent, and with an agent. Both were very easy, one I keep more money..........one I don't. Whatever, life moves on.

 

[Englewood]

Any experience selling with Redfin?

Would you go an urgent care for top medical care?
Would you go to Walmart for major vehicle repairs?

Not trying to be a dick, just painting a picture of the quality of agent they attract.

Only the weakest of agents go to Redfin. No good agent would step foot in that place. I personally would want someone who is actually talented and financially invested to handle my biggest financial transaction. But that’s just me.

 

[whiteworks]

Truths I’ve noticed about realtors, no offense meant to any in that business.

1. Realtors will justify the commissions and the need for a realtor in a transaction until hell freezes over.

2. Each one claims to be the best and most professional at what they do.

3. Each one considers all other realtors unprofessional hacks.

 

[riverroyal]

I just paid 77k this week. I'm pretty thrilled.
Our agent was good, the others.....
It a strange profession in 2023
We are one good software program away for not needed agents. Like bank tellers.

 

[hallett21]

Would you go an urgent care for top medical care?
Would you go to Walmart for major vehicle repairs?

Not trying to be a dick, just painting a picture of the quality of agent they attract.

Only the weakest of agents go to Redfin. No good agent would step foot in that place. I personally would want someone who is actually talented and financially invested to handle my biggest financial transaction. But that’s just me.

I will say the “best agents” tend to hire the worst “help” lol. And that’s coming from someone who does a decent amount of work in good areas.

But business is business so I get it.

 

[caribbean20]

A good agent, when selling, will have a Rolodex of vendors to spruce the place up, stage the home and market the place. For the buy side, get a good lay of the land for competitive intel. Especially if I am buying into an area with which I’m not familiar.

For that, I’m fine with paying a commission of 4 or 5%, max. I don’t recall ever feeling ripped off on 8 or so buys and sells.

 

[Vib]

Agent fees should be hourly like attorney fees. The ones that add value and work for it should be compensated appropriately, the ones that get $30k that just happen to be associated with a buyer or seller and do nothing to add value should get much less.

After further thought - hourly would encourage them to just to drag out the whole transaction to run up the bill...bad for consumers.

As a commercial real estate brokerage owner I would welcome hourly fees. We will then bill exactly like attorneys, plumbers, electricians, etc.

 

[Cdog]

As a commercial real estate brokerage owner I would welcome hourly fees. We will then bill exactly like attorneys, plumbers, electricians, etc.

The amount of "free time" I dole out to clients is mind numbing.

It's important that people remember we don't have closure on this lawsuit. There are massive consequences on all sides depending on how the dust settles. Most people who have an opinion on it as a consumer don't even understand they are paying compensation to the listing broker and that broker is splitting to attract a buyer/buyers broker. They don't understand what they agreed to in a contract yet they are capable of selling their home with their own contract.

Okay.

 

[28Eliminator]

Kinda depends on what they are doing for the client doesn’t it?

To some degree, of course. But how much more work is the agent doing on a $1,000,000 house than a $300,000 house if the house sells quickly.. say within 2 weeks, assuming the same amount of work. Is the $60,000 commission justifiable compared to the $18,000 one just because there was another digit involved?

I haven’t sold a house in 20 years, but I was able to negotiate a more reasonable commission on 2 of them.. at least at the time. Does the industry still reduce commission % at certain price thresholds? I don’t even know anymore.. Lol.

 

[J DUNN]

What I've NEVER understood is how if I'm the buyer, how is my agent "working" for me but yet monetarily incentivized to keep the price higher?

I've always wanted to tell my agent (if I'm the buyer), "Okay, you get 1% of the sale price but I'll give you 30% of whatever amount we get off the asking price!" I just throw those numbers out hypothetically. The buyer and seller agents shouldn't be on the same team and in kahootz to keep the price higher. The buyers agent SHOULD be monetarily incentivized to get you a better deal, almost like they're actually working for you!!!!!! Screw the whole seller pays both commissions. I'll gladly pay my agent as the buyer but I'm paying a large portion based on how much you save me.

 

[Cdog]

What I've NEVER understood is how if I'm the buyer, how is my agent "working" for me but yet monetarily incentivized to keep the price higher?

I've always wanted to tell my agent (if I'm the buyer), "Okay, you get 1% of the sale price but I'll give you 30% of whatever amount we get off the asking price!" I just throw those numbers out hypothetically. The buyer and seller agents shouldn't be on the same team and in kahootz to keep the price higher. The buyers agent SHOULD be monetarily incentivized to get you a better deal, almost like they're actually working for you!!!!!! Screw the whole seller pays both commissions. I'll gladly pay my agent as the buyer but I'm paying a large portion based on how much you save me.

Nobody could make a living doing it with that compensation model.

So they save you 20k off your 550k house.

You pay them 6k instead of the $16,500 they would have made at 3%.

Let’s say they are on a 80/20 split with their broker. $13,200 to the agent minus transaction costs $1,000. Out of that $12,200 figure 35% in taxes. Remember we have to pay self employment tax. $7,930 left over.

The average agent 80%er is probably lucky to do 4 of those transactions a year.

So you think you can find someone to do all that for $2,800 net?

Google says 2-10 transactions a year & 51k income on average. 87% failure rate

 

[J DUNN]

Nobody could make a living doing it with that compensation model.

So they save you 20k off your 550k house.

You pay them 6k instead of the $16,500 they would have made at 3%.

Let’s say they are on a 80/20 split with their broker. $13,200 to the agent minus transaction costs $1,000. Out of that $12,200 figure 35% in taxes. Remember we have to pay self employment tax. $7,930 left over.

The average agent 80%er is probably lucky to do 4 of those transactions a year.

So you think you can find someone to do all that for $2,800 net?

Google says 2-10 transactions a year & 51k income on average. 87% failure rate

As I said, my numbers were hypothetical. You conveniently left out the 1% of sale price I mentioned.

You’re missing my point and not even addressing it really. I have NO problem with the buyers agent getting paid what is “fair.”
I’m happy to pay my agent $20-$30k if they ACTUALLY work for me on my side of the table.

I’m not going to work through the 5,000 different pricing scenarios to find the one that works but if you are an agent and you did that and found the magic number so that you’re still paid well as a buyers agent but the buyer can see how you’re paid based on the price going in the buyers favor then YOU would be MY preferred agent and a lot of other peoples on EVERY SINGLE purchase.

 

[Cdog]

As I said, my numbers were hypothetical. You conveniently left out the 1% of sale price I mentioned.

You’re missing my point and not even addressing it really. I have NO problem with the buyers agent getting paid what is “fair.”
I’m happy to pay my agent $20-$30k if they ACTUALLY work for me on my side of the table.

I’m not going to work through the 5,000 different pricing scenarios to find the one that works but if you are an agent and you did that and found the magic number so that you’re still paid well as a buyers agent but the buyer can see how you’re paid based on the price going in the buyers favor then YOU would be MY preferred agent and a lot of other peoples on EVERY SINGLE purchase.

I read that as 1% or 30% of savings.

At the end of the day my math shows you the compensation breakdown and that’s legitimate

 

[rrrr]

A good agent, when selling, will have a Rolodex of vendors to spruce the place up, stage the home and market the place. For the buy side, get a good lay of the land for competitive intel. Especially if I am buying into an area with which I’m not familiar.

For that, I’m fine with paying a commission of 4 or 5%, max. I don’t recall ever feeling ripped off on 8 or so buys and sells.

This is a good point. Our agent dispatched a crew of competent workers with a plethora of skills to our house a few days before the listing went live, and they fixed all of the stuff I had been ignoring for a long time in two days.

More than 50 realtors came by the open house, and it sold in a few days for way more than the market based asking price. It was worth the commission.

 

[riverroyal]

So do some math....from day 1 to final day is 45 days ish for a realtor on a fair priced house.
80k in commission? I know they don't get it all. But cut it to 25k, what does that come our to? $200 a hour?
It's not always a quick sale.
So if you tried to understand the hourly rate it's pretty tough.

I said it before, one good real estate software for the documents and bank things and the profession is gone.
Like carvana, or 'internet ' car sales.
It's all math, marketing and luck.
Real estate is no different than any other large purchase at the end of the day.

There is sooooo much documentation to sign the realtors risk is pretty small.

Some are good, ethical hard workers. Some..

 

[RiverDave]

BNAG!

I’m not a real estate agent.. I owe the guy a nice dinner.. just busy as shit all the time and it got forgot about. lol

 

[RiverDave]

I’ve never met a single person who thinks they are overpaid for what they do.

lol truth

 

[RiverDave]

As a commercial real estate brokerage owner I would welcome hourly fees. We will then bill exactly like attorneys, plumbers, electricians, etc.

Strangely a lot of attorneys aren’t on the hourly anymore.. they do a flat fee kinda deal. I was surprised to learn that

 

[Rivrat]

I’m on my 3rd home trying to buy a 4th. There has yet to be a good realtor in any of these transactions. Even gave that 72 sold bozo a try… fuckin morons in that business, it’s a shame.

 

[Cdog]

I’m on my 3rd home trying to buy a 4th. There has yet to be a good realtor in any of these transactions. Even gave that 72 sold bozo a try… fuckin morons in that business, it’s a shame.

 

[Sleek-Jet]

Strangely a lot of attorneys aren’t on the hourly anymore.. they do a flat fee kinda deal. I was surprised to learn that

Not the ones I deal with. I get billed on 1/10 hr increments.

 

[Singleton]

Strangely a lot of attorneys aren’t on the hourly anymore.. they do a flat fee kinda deal. I was surprised to learn that

Depends on the attorney. Those worth working with, don’t do flat fees based on my experience.
Most have a retainer (min you pay), then once you exceed that you either pay hourly rates or another retainer.

 

[traquer]

Anyone can be a Realtor, even I had my license in college lol...

I think there's generally 3 kinds of realtors:

- The pro. Someone who's lived in the area for decades and knows everyone and everything. They've sold hundreds of homes and you can't give them a problem they don't have a solution for. They tell you exactly what you need to do to the house to sell for the most money, they know a pool guy that will come out on 12 hours notice and do an emergency call to make sure your pool isn't green in the photoshoot, they have the best stagers that don't cost an arm and a leg, good drone photo guys etc. They don't bother you, only call when there's somethign important, but they keep you in the loop and take you out to dinner randomly one Friday just because. They're worth their 5-6%.

- The hot milf. May have sold a dozen or two houses in her life, but she's a rookie. But she has big boobs and she's good at sales. It's a sales job after all. She'll get the job done but 90% of the work is done by her male coworkers... She'll probably forget to call you back most of the time unless she's about to get paid. Not worth th 5-6%.

- The friend. Might be an experienced agent, might not be. Everyone has a friend or relative that's a real estate agent these days.. Only if they have experience in your city and neighborhood, then it may be a great deal. It feels good to work with somene you know, and help them out instead of someone random. The only downside is some people like to be private and not let their friend see their bank statements and tax returns. That's probably the biggest reason they flake on their friend who's left thinking "WTF I thought I was their friend" nothing personal I guess?

Just my 2c from what I've seen in the industry

 

[Done-it-again]

Not the ones I deal with. I get billed on 1/10 hr increments.

Mine too and so does my CPA firm.....

 

[Cdog]

Anyone can be a Realtor, even I had my license in college lol...

I think there's generally 3 kinds of realtors:

- The pro. Someone who's lived in the area for decades and knows everyone and everything. They've sold hundreds of homes and you can't give them a problem they don't have a solution for. They tell you exactly what you need to do to the house to sell for the most money, they know a pool guy that will come out on 12 hours notice and do an emergency call to make sure your pool isn't green in the photoshoot, they have the best stagers that don't cost an arm and a leg, good drone photo guys etc. They don't bother you, only call when there's somethign important, but they keep you in the loop and take you out to dinner randomly one Friday just because. They're worth their 5-6%.

- The hot milf. May have sold a dozen or two houses in her life, but she's a rookie. But she has big boobs and she's good at sales. It's a sales job after all. She'll get the job done but 90% of the work is done by her male coworkers... She'll probably forget to call you back most of the time unless she's about to get paid. Not worth th 5-6%.

- The friend. Might be an experienced agent, might not be. Everyone has a friend or relative that's a real estate agent these days.. Only if they have experience in your city and neighborhood, then it may be a great deal. It feels good to work with somene you know, and help them out instead of someone random. The only downside is some people like to be private and not let their friend see their bank statements and tax returns. That's probably the biggest reason they flake on their friend who's left thinking "WTF I thought I was their friend" nothing personal I guess?

Just my 2c from what I've seen in the industry

Nailed it. Big boobs wins a lot of the time. Then that seller or buyer goes on the internet to tell everyone how all realtors are worthless.

 

[rrrr]

Anyone can be a Realtor, even I had my license in college lol...

I think there's generally 3 kinds of realtors:

- The pro. Someone who's lived in the area for decades and knows everyone and everything. They've sold hundreds of homes and you can't give them a problem they don't have a solution for. They tell you exactly what you need to do to the house to sell for the most money, they know a pool guy that will come out on 12 hours notice and do an emergency call to make sure your pool isn't green in the photoshoot, they have the best stagers that don't cost an arm and a leg, good drone photo guys etc. They don't bother you, only call when there's somethign important, but they keep you in the loop and take you out to dinner randomly one Friday just because. They're worth their 5-6%.

- The hot milf. May have sold a dozen or two houses in her life, but she's a rookie. But she has big boobs and she's good at sales. It's a sales job after all. She'll get the job done but 90% of the work is done by her male coworkers... She'll probably forget to call you back most of the time unless she's about to get paid. Not worth th 5-6%.

- The friend. Might be an experienced agent, might not be. Everyone has a friend or relative that's a real estate agent these days.. Only if they have experience in your city and neighborhood, then it may be a great deal. It feels good to work with somene you know, and help them out instead of someone random. The only downside is some people like to be private and not let their friend see their bank statements and tax returns. That's probably the biggest reason they flake on their friend who's left thinking "WTF I thought I was their friend" nothing personal I guess?

Just my 2c from what I've seen in the industry

Nailed it. Big boobs wins a lot of the time. Then that seller or buyer goes on the internet to tell everyone how all realtors are worthless.

Our realtor was a #1 with big boobs.

 

[cofooter]

Anyone can be a Realtor, even I had my license in college lol...

I think there's generally 3 kinds of realtors:

- The pro. Someone who's lived in the area for decades and knows everyone and everything. They've sold hundreds of homes and you can't give them a problem they don't have a solution for. They tell you exactly what you need to do to the house to sell for the most money, they know a pool guy that will come out on 12 hours notice and do an emergency call to make sure your pool isn't green in the photoshoot, they have the best stagers that don't cost an arm and a leg, good drone photo guys etc. They don't bother you, only call when there's somethign important, but they keep you in the loop and take you out to dinner randomly one Friday just because. They're worth their 5-6%.

- The hot milf. May have sold a dozen or two houses in her life, but she's a rookie. But she has big boobs and she's good at sales. It's a sales job after all. She'll get the job done but 90% of the work is done by her male coworkers... She'll probably forget to call you back most of the time unless she's about to get paid. Not worth th 5-6%.

- The friend. Might be an experienced agent, might not be. Everyone has a friend or relative that's a real estate agent these days.. Only if they have experience in your city and neighborhood, then it may be a great deal. It feels good to work with somene you know, and help them out instead of someone random. The only downside is some people like to be private and not let their friend see their bank statements and tax returns. That's probably the biggest reason they flake on their friend who's left thinking "WTF I thought I was their friend" nothing personal I guess?

Just my 2c from what I've seen in the industry

So true! I have used two different pros in different areas for several of my transactions. Worth every penny. On the other hand, I'm looking in a few areas that I am not familiar with and only see the hot MILF's. Need to find a referral for the Pro's!

 

[COCA COLA COWBOY]

I've been in the industry for about 30 years and selling residential for about 24 years. At first, I was worried about this situation because it will make changes to the industry. Change sucks right! Most likely, there will be additional court cases after the fact because the system we ave now was based on court cases 50 years ago! Lots of history and I'm not going to dictate it, but I will at a later time if someone chimes in and wants the history.

In the end, I mostly have worked with sellers in my history and this will actually benefit me in the long run as buyers agents most likely will become a thing of the past or will be an hourly wage job of just showing homes. That buyers agents most likely won't care much when sellers only offer a few hundred dollars for them to bring a buyer. Also, when the market changes, which it is right now, sellers will be begging for good agents to help them with the marketing of their home.

Will good listing agents/brokers start listing homes for 2-3%...nope, they will still be listing homes for 5-6% as that is what the overheard in this industry dictates. Just like all of you that are contractors or business people that have huge amounts of overhead, we do too. Office, staff, marketing, internet associations, mailers, signs, vehicles, insurance, etc. etc. etc.

In the end, when there is a shift in an industry who is the winners and who are the losers....the consumers are sold a bill of goods and they always get the short end of the stick.

Is it better now or 30 years ago getting a vacation when there were travel agents? Is it better now or 30-40 years ago buying anything? It's more efficient now, but as far as quality and experience the past always wins. Remember those cheap prices of Uber when they first came out? Not too cheap anymore and the quality of the ride went back down to the yellow cabs.

If the protections of agents and brokers become more limited for property owners, you will see so much corruption it will make your head spin. At least now, when you have an issue you can blow up the phones of about 5 people including agents, brokers, escrow, title, etc. Wait until everything is done on an app and you only get to talk to someone in India. When your home closed escrow, but the funds magically didn't appear in your account? Yeah, there are crooks that already planning how they are going to steal your equity.

Consumers always lose!

 

[LargeOrangeFont]

As I said, my numbers were hypothetical. You conveniently left out the 1% of sale price I mentioned.

You’re missing my point and not even addressing it really. I have NO problem with the buyers agent getting paid what is “fair.”
I’m happy to pay my agent $20-$30k if they ACTUALLY work for me on my side of the table.

I’m not going to work through the 5,000 different pricing scenarios to find the one that works but if you are an agent and you did that and found the magic number so that you’re still paid well as a buyers agent but the buyer can see how you’re paid based on the price going in the buyers favor then YOU would be MY preferred agent and a lot of other peoples on EVERY SINGLE purchase.

A good agent wants to make a deal. Yes they may try to talk you into a negotiated price, but also likely aren’t trying to drive up the price unless you are a pushover. 3% of you paying $30k more on your house is $900 of their commission.

How hard do you think they want to work to try to make another $900? Any agent worth working with is just going to close the deal as opposed to juicing you.

 

[LuauLounge]

I've sold two houses in my lifetime, both FSBO. Offered 3% to any realtor that brought me a buyer. All I got was from the realtors was the pitfalls of selling your own house. Both were super clean and sold quicky for the highest price in the neighborhood. Last one was in the 80's, so a lot has changed since then. I've now got 3 to sell and we'll see what path we go.
By far, the best buying experiences we've ever had was: It was a Sunday afternoon and my wife was on the way to the grocery store. There was an open house, so she stopped in. She came home about 30 minutes later and said you need to come look at this place. As I was changing the oil on the car, I washed my hands to be presentable. Headed over there, it was a block away, on a court, 1/3 acre, had a pool, 4/3, 2000 sq ft and needed updating, but nothing had to be done. Talked about it for about 30 minutes and followed the realtor down to his office to fill out the paperwork. Got finished, he said let me contact the owner and I will get back to you. We stood up to leave and he said sit down, it will only be a minute. He turns around to the guy at the desk behind him and said, "Hey Willis, I have an offer of $125,000 on your house." Willis says, No, I can't go that low. I almost fell off the chair and said, perhaps the owner has a counter offer in mind, The realtor turns around and said, got a counter in mind? How about $128,000. Our agent turns to us, dead faced and says "I've contacted the owner and he has countered at $128,000. I said how about $127,000, finally settled on $127,500 and laughed through the whole transaction. Signed the deal and less than 45 minutes left the office.
A few weeks into escrow and we're watching 30 year mortgages drop 1/4 percent a week. Called the realtor and asked what's Willis's motive on the place. He calls me back and says he took the house on a trade, there's an existing loan and he doesn't want to make the payments on it. I asked if he'd be interested in renting it until rates settle. Realtor called him and Willis agreed to that if we rent it from him for his payment, $1k/month, he'd credit me back $300/month at COE. Just close it within the next 6 months or so. Stopped by the realtor's office, filled out a rental agreement and picked up the keys. We ended getting a mortgage that was 1 1/4% lower than when we started.
Never had such a great time dealing with these old horse-traders. 35 years later, now getting ready to sell and I know it won't be that easy or enjoyable.

 

[Cdog]

I've sold two houses in my lifetime, both FSBO. Offered 3% to any realtor that brought me a buyer. All I got was from the realtors was the pitfalls of selling your own house. Both were super clean and sold quicky for the highest price in the neighborhood. Last one was in the 80's, so a lot has changed since then. I've now got 3 to sell and we'll see what path we go.
By far, the best buying experiences we've ever had was: It was a Sunday afternoon and my wife was on the way to the grocery store. There was an open house, so she stopped in. She came home about 30 minutes later and said you need to come look at this place. As I was changing the oil on the car, I washed my hands to be presentable. Headed over there, it was a block away, on a court, 1/3 acre, had a pool, 4/3, 2000 sq ft and needed updating, but nothing had to be done. Talked about it for about 30 minutes and followed the realtor down to his office to fill out the paperwork. Got finished, he said let me contact the owner and I will get back to you. We stood up to leave and he said sit down, it will only be a minute. He turns around to the guy at the desk behind him and said, "Hey Willis, I have an offer of $125,000 on your house." Willis says, No, I can't go that low. I almost fell off the chair and said, perhaps the owner has a counter offer in mind, The realtor turns around and said, got a counter in mind? How about $128,000. Our agent turns to us, dead faced and says "I've contacted the owner and he has countered at $128,000. I said how about $127,000, finally settled on $127,500 and laughed through the whole transaction. Signed the deal and less than 45 minutes left the office.
A few weeks into escrow and we're watching 30 year mortgages drop 1/4 percent a week. Called the realtor and asked what's Willis's motive on the place. He calls me back and says he took the house on a trade, there's an existing loan and he doesn't want to make the payments on it. I asked if he'd be interested in renting it until rates settle. Realtor called him and Willis agreed to that if we rent it from him for his payment, $1k/month, he'd credit me back $300/month at COE. Just close it within the next 6 months or so. Stopped by the realtor's office, filled out a rental agreement and picked up the keys. We ended getting a mortgage that was 1 1/4% lower than when we started.
Never had such a great time dealing with these old horse-traders. 35 years later, now getting ready to sell and I know it won't be that easy or enjoyable.

My grandfather was a broker in the Torrance, palos verdes area from the time he got home from Korea till he retired in the early 80’s. His stories were Just as you said above. Real characters. Every neighborhood SW of the Del amo mall he sold a couple of homes and had a story about.

 

[Englewood]

I said it before, one good real estate software for the documents and bank things and the profession is gone.
Like carvana, or 'internet ' car sales.

There is sooooo much documentation to sign the realtors risk is pretty small.

If the risk was small you wouldn’t have so much documentation.

 

[RiverDave]

I’m kinda sitting here in disbelief reading some of the comments but I guess I shouldn’t be surprised..

There is absolutely a ton of shitty realtors out there, but there are some very good ones as well.

It’s 4:30 am right now and I can’t sleep because I have a ton of stuff going on behind the scenes right now and just trying to get everything done. Talking to my IT guys over in the UK etc..

In about an hour and a half my wife’s phone will start ringing. The other night she got home around 10:30 pm. Point in fact I think either her or I have to go to the north side in the am to take some trash cans out tomorrow am.. lol

If I walk outside to my race trailer right now it’s completely full of clothing and furniture from a house she sold. If I goto one of my storage units there’s a customers boat sitting in it right now. She spends enough on marketing every month that I could have several Ferraris sitting in my garage.. (that’s not including the reach of rdp). We keep a first class place open for clients to stay at when they come into town if they want to see properties or? That doesn’t include the offices, the in house film guy, the 40k in equipment, and on and on.

Is there a lot of money in it? Yes.. is there a ton of expenses in it? More than most would ever know if you are actually “marketing” the property.

I have a little different perspective on this because I have been the guy in the shop making the parts.. and I have been the guy out in the world selling the same parts that I used to make.

It’s easy for the worker to say the sales guy makes too much because they worked their ass off for months for that one person to “fill out some paperwork and get the same reward.” What they don’t see is the months the sales guy doesn’t get paid, or the effort that goes into actually marketing and finding a buyer. It’s again, the same across all industries.

If your point of reference is Covid.. then yes the brokers of boats, Offroad toys, planes, and even houses had a much easier job than they traditionally had.. Covid is over.

I can promise pre Covid, and in today’s world.. you aren’t money ahead trying to do any of that yourself. Point in fact I’d argue even with commissions you are behind.

If you sold a house yourself in one day for asking or even slightly over.. the odds are pretty high ya sold it for less than it was actually worth. Because with anything sales it’s a numbers game, the more people that see it the better chance you have to sell it for the maximum value.

As most know I love gambling..

To put that in a different light.. if ya don’t know how to play poker, you probably don’t want to start by gambling with your most expensive asset and sitting down with people that have been playing for years and have professional coaches that they talk to daily. Even if ya win a hand that doesn’t mean you are walking away a “winner.”

RD

 

[Singleton]

I once remember reading, after all expenses, etc the average RE agent takes home apx 1% of that 3%.

A good RE agent is worth the %. Bad RE’s give good RE a bad name.

I remember when I dad sold his AZ home. Paradise Valley RE agent (via relocation company) told my dad he could sell the house as-is (no need to remove select wall paper, paint for neutral colors inside the house). My dads attorney was smart enough to get that in the contract. 2 months into the listing, my dad was painting, removing wall paper etc. 100% of those expenses were dedicated from the RE % . Relocation company also ended up firing the guy After the house finally sold.

 

[Done-it-again]

I once remember reading, after all expenses, etc the average RE agent takes home apx 1% of that 3%.

A good RE agent is worth the %. Bad RE’s give good RE a bad name.

I remember when I dad sold his AZ home. Paradise Valley RE agent (via relocation company) told my dad he could sell the house as-is (no need to remove select wall paper, paint for neutral colors inside the house). My dads attorney was smart enough to get that in the contract. 2 months into the listing, my dad was painting, removing wall paper etc. 100% of those expenses were dedicated from the RE % . Relocation company also ended up firing the guy After the house finally sold.

So an agent is only taking home $255 on a 850k sale? 3%on 850k is 25,500 and 1% of that is $255.

 

[Singleton]

So an agent is only taking home $255 on a 850k sale? 3%on 850k is 25,500 and 1% of that is $255.

1% of commission %.
In above example = 3% on sale is 25.5. = after expenses RE is taking home apx 8.5k

 

[Englewood]

So an agent is only taking home $255 on a 850k sale? 3%on 850k is 25,500 and 1% of that is $255.

Let’s use round numbers…

Listing price $500,000
2.5% commission = $12,500
Most agents are on 70-90% split. Let’s use 80% as an example.

Gross is $10,000
-$3,500 taxes
-$1,500 marketing for that listing
$5,000 remaining

Of that $5,000, you have recurring marketing expenses, gas, marketing materials, insurance, Zillow, training, board memberships, etc.

At the end of the day, when the dust settles, the true net is about $2-$3k. The bigger the agent, the more expenses they have.

 

[CLdrinker]

Out of my 3 transactions

All realtors involved have proven useless.

 

[RiverDave]

Out of my 3 transactions

All realtors involved have proven useless.

How did you find them and what made you use them?

Maybe the problem was the selection process..

 

[CLdrinker]

How did you find them and what made you use them?

Maybe the problem was the selection process..

Top rated high producing and recommendations from their peers.

Typical sales speeches promise one thing and do another.

Allot like some loan people. Advertise 1 thing even though they know it’s bullshit.

 

[pronstar]

Commissions are negotiable.
Sellers with brains simply bake the cost of commissions into the asking price for the house.

What’s the problem here?

 

[RiverDave]

Top rated high producing and recommendations from their peers.

Typical sales speeches promise one thing and do another.

Allot like some loan people. Advertise 1 thing even though they know it’s bullshit.

How can someone be top rated, but also worthless?

IF someone promises one thing and doesn't deliver I'd fire them immediately and get someone who does.

RD

 

[530RL]

How can someone be top rated, but also worthless?

IF someone promises one thing and doesn't deliver I'd fire them immediately and get someone who does.

RD

 

[RiverDave]

View attachment 1299777

I don’t follow sports so I don’t know who that is

 

[530RL]

I don’t follow sports so I don’t know who that is

Kyler Murray.

The 230.5 million dollar Cardinals quarterback.

It was a pun on top rated and also worthless.......

An attempt to keep the discussion light.

 

[RiverDave]

gotcha.. I think? LOL

RD

 

[LargeOrangeFont]

So what happens if I’m selling my house and the HVAC system needs a Cap replaced? Whose pocket is that coming out of? Mine or the realtor?


For every person whining about how much a realtor makes, tell us what you do and what you make so we can tell you everyone in your field is worthless and you should not be paid what you are making

 

[RiverDave]

So what happens if I’m selling my house and the HVAC system needs a Cap replaced? Whose pocket is that coming out of? Mine or the realtor?


For every person whining about how much a realtor makes, tell us what you do and what you make so we can tell you everyone in your field is worthless and you should not be paid what you are making

If it was out here and holding up the sale I’d just have weatherman put one in for ya.. lol.

But my initial smart ass remark would be.. “do ya have a home warranty?”

All the realtors think those home warranties are gods gift to earth.. personally I think they are worthless.

 

[wzuber]

Our realtor was a #1 with big boobs.

Nice...but did she show them to you? Let you play w/them? Touch'em, Kiss'em, motor boat'em? Let your wife play with them? Probably not.
Sooo...you paid her all that $$$ and yet still didn't get to even see those glorious gamms......
Yup....realtors are over paid and a scam...lol