Realtors

[dean c]

I see in addition to internet Doctors, Lawyers, Pilots, Financial experts, the BBC also has internet Realtors.

[paul40269]

If a house is listed with a 3% commission and not by my broker, my split will be half of the 1.5% (.75%). Not worth my time when there are many that will pay me 1.5 - 3.

But your client really wants to see the house. What are you going to do? Tell said client it's not worth your time?

[NitroZ7]

The family condo in Florida sold in two weeks, cash sale at 4% commission, closed in less than three weeks.

Some would say the realtor had an easy payday at 11,400.00. I look at it as they put a whole bunch of time in knowing all the pertinent laws and staying current on the market. It's not like they don't spend a whole bunch of time in networking to keep a good flow of buyers and/or sellers. You bet there are some real dirt bags in eery profession including real estate, but I figure that is my job to interview and pick a realtor if I want one. I typically try to use the Broker in Charge since they tend to have the autonomy to negotiate percentages. I've have owned or been partial owner of 14 purchased houses now not counting rentals between moves.

I tried to buy the condo but the bank had all kinds of bad news on VA Loans and the old forms stating "the house would be my primary residence". The commercial lenders that can loan on rentals all wanted 25% down, the number of owner occupied vs renters, and all kinds of other info I had no clue about. The rate then was 8.5%...YIKES! I messed up on that one not buying it straight up when my wife and I found it a few years ago because loans were easy peasy and interest rates were low. Lesson learned that family can be every bit as greedy on a quick profit as anyone else! I'm pissed at myself right now over that one. The realtor did what she was paid to do.

We sold our house in NC last November and we had a contract within a week and closed within a month. We were not up there so using a realtor to list it and coordinate the inspections etc. made our life easier since we were out of state. I think we paid a 5% commission.

[Tim kroul]

No I did the area comps just like a realtor would.

[BMCD]

Thinking that a seller is going to take less because they are only paying one realtor is absolutely crazy. The buyer has always been the one paying the commission as the transaction doesn't happen unless there is a buyer.

I did not say or imply that. Currently the seller always assumes the buyers realtor commissions. One of my comments was about overall valuations and the artificial 6% in the market that is factored into the selling price.

I do think it helps the situation if the buyer has to pay his realtor and the seller only owes his realtor once the transaction takes place, this will help make the fees more visible and create competition. That is part of what is being proposed, or is allowed to happen.....which will also make financing those fees a little tougher to do. But as stated i bet not much changes and it stays close to the same as it is today. People resist change, even when change is better.

I am anti realtor, because i have bought property without any realtors. But I also acknowledge realtors have its place and they are needed for many. My mom is fixing to move back to Texas, she may pay up to 50k in relator fees. it kills me she is willing to loose that much money, for a house that will sell in 2 weeks.

[Rick Pierce]

Here is a link to the New York Times article on the realtor commissions topic. They have quite a few links in their recent articles from the Wall Street Journal and others which are guiding us towards lower real estate commissions. The judicial decision on this case is seen as a significant transition for the real estate markets.

https://www.nytimes.com/2024/03/16/r...it_nn_20240318

[Duece22]

I did not say or imply that. Currently the seller always assumes the buyers realtor commissions. One of my comments was about overall valuations and the artificial 6% in the market that is factored into the selling price.

I do think it helps the situation if the buyer has to pay his realtor and the seller only owes his realtor once the transaction takes place, this will help make the fees more visible and create competition. That is part of what is being proposed, or is allowed to happen.....which will also make financing those fees a little tougher to do. But as stated i bet not much changes and it stays close to the same as it is today. People resist change, even when change is better.

I am anti realtor, because i have bought property without any realtors. But I also acknowledge realtors have its place and they are needed for many. My mom is fixing to move back to Texas, she may pay up to 50k in relator fees. it kills me she is willing to loose that much money, for a house that will sell in 2 weeks.

How many people sell a house and buy a cheaper house? So far this year, every house I have sold they have turned around and bought a more expensive house. If they had to pay me 1 2 or 3% to buy and sell, they are going to pay more on the buying end vs just paying both agents when selling.

As far as FSBO, everyone that has called me because they couldn't sell it has put more money in their pocket than they would have when they listed it FSBO.

[Stratos81]

If a house is listed with a 3% commission and not by my broker, my split will be half of the 1.5% (.75%). Not worth my time when there are many that will pay me 1.5 - 3.

A $350,000.00 house would get you around $3k… how much time are you really spending on this as a buyers agent. This is the reason people think realtors are douchebags, and why the popularity of eliminating them is rising.

[BP in ME]

A $350,000.00 house would get you around $3k… how much time are you really spending on this as a buyers agent. This is the reason people think realtors are douchebags, and why the popularity of eliminating them is rising.

Are you being serious? Do you not understand the first thing about being a realtor?

[Tim kroul]

Or did you miss out on an additional $15,000?

No I did the area comps just like a realtor would. Nice try through, best of luck to you.

[Stratos81]

Are you being serious? Do you not understand the first thing about being a realtor?

LOL… Nope, I dont so please school me.

[paul40269]

A $350,000.00 house would get you around $3k… how much time are you really spending on this as a buyers agent. This is the reason people think realtors are douchebags, and why the popularity of eliminating them is rising.

Let me help you understand what a buyer's agent does since you're a little misinformed.... $3000

1. Initial consult/meeting with client 1-2 hours on a weeknight or weekend.
2. Running comps, researching areas, setting up targeted and automated searches to send to clients on the MLS: 1-2 hours
3. Finding a client a home. This is where it gets dicey. This can be anywhere from 1 day (rarely), 1 week, to 1 month to 1 year of showing the same clients homes on THEIR schedule, nights and weekends usually. Well to do clients with all cash or large down payments will be easier to find a home for than others. FHA buyers and people with only 10-20 percent will be harder. So finding a home could take 1 hour to 50 hours.

4. Writing/preparing offers, corresponding with other agents, etc. 1-2 hours. Repeat #3 and #4 over and over if the client keeps losing bidding wars.

5. Once offer is accepted. Help client schedule inspections, file OPRA with local town to get past permit info on the house, etc. Research town's Certificate of Occupancy requirements to make sure seller will be on top of getting final permit needed to close deal. Call township officials if need be. 2 hours. Attend inspection: 3 hours.

6. Review inspection report with clients. Discuss which repairs to ask for and which to let go. Research what repairs will cost by reaching out to your list of contractors, etc. Sift through report and create a list of most important repairs needed, then line up subsequent inspections if need be in order to get repair quotes so you can present them to seller (example: home inspector mentions the electrical panel is wired wrong, so you help client find an electrician and have to go back to the house for this item to be inspected further) another 2-3 hours.

7. If using an attorney, monitor all email exchanges so all parties are staying on top of the transaction details. Make phone calls as needed. Make sure clients are keeping up with their lender's requirements, etc. Keep in touch with listing agent to make sure his/her sellers are keeping up with the pace of the transaction. Help buyers plan for closing day/moving. 3-4 hours.

8. Once all agreed repairs are made, attend final walkthrough with buyers to make sure the seller repaired what they said they would and that the house is in same shape as last seen. 2 hours.

9.Attend closing and collect check that is written out to your broker, not you. 1 hour.
10. Drop your check off to your broker's office where they will take their cut and then give you a check for 30-35% less than the first check. (30 minutes).
11. Don't calculate the hours spent on the deal because it will piss you off. But know that you did a good job and that buyers are sellers someday and selling a house is much less work for a realtor.
12. Enjoy seeing the money deposited into your account until tax time where as a 1099 Independent Contractor you will pay a ton of tax and bring home 40 percent less than the amount deposited.
13. Hope the next deal you get is a seller so you don't have to work as much for the same amount.

[ProVle]

This may explain some things that are misunderstood. https://www.realtor.com/guides/the-u...he-difference/

[vatreefarmer]

If a house is listed with a 3% commission and not by my broker, my split will be half of the 1.5% (.75%). Not worth my time when there are many that will pay me 1.5 - 3.

Curious...Is that what you tell the buyer who wants to see it?

[TritonJT]

When you have bidding wars, no inventory, cash buyers that decline inspections like we've had in recent years everybody is a real estate expert that can sell their homes themselves. When things normalize top realtors will be valuable once again. A top realtor works their ass off, and is on call more than a doctor.

[Stratos81]

Let me help you understand what a buyer's agent does since you're a little misinformed.... $3000

1. Initial consult/meeting with client 1-2 hours on a weeknight or weekend.
2. Running comps, researching areas, setting up targeted and automated searches to send to clients on the MLS: 1-2 hours
3. Finding a client a home. This is where it gets dicey. This can be anywhere from 1 day (rarely), 1 week, to 1 month to 1 year of showing the same clients homes on THEIR schedule, nights and weekends usually. Well to do clients with all cash or large down payments will be easier to find a home for than others. FHA buyers and people with only 10-20 percent will be harder. So finding a home could take 1 hour to 50 hours.

4. Writing/preparing offers, corresponding with other agents, etc. 1-2 hours. Repeat #3 and #4 over and over if the client keeps losing bidding wars.

5. Once offer is accepted. Help client schedule inspections, file OPRA with local town to get past permit info on the house, etc. Research town's Certificate of Occupancy requirements to make sure seller will be on top of getting final permit needed to close deal. Call township officials if need be. 2 hours. Attend inspection: 3 hours.

6. Review inspection report with clients. Discuss which repairs to ask for and which to let go. Research what repairs will cost by reaching out to your list of contractors, etc. Sift through report and create a list of most important repairs needed, then line up subsequent inspections if need be in order to get repair quotes so you can present them to seller (example: home inspector mentions the electrical panel is wired wrong, so you help client find an electrician and have to go back to the house for this item to be inspected further) another 2-3 hours.

7. If using an attorney, monitor all email exchanges so all parties are staying on top of the transaction details. Make phone calls as needed. Make sure clients are keeping up with their lender's requirements, etc. Keep in touch with listing agent to make sure his/her sellers are keeping up with the pace of the transaction. Help buyers plan for closing day/moving. 3-4 hours.

8. Once all agreed repairs are made, attend final walkthrough with buyers to make sure the seller repaired what they said they would and that the house is in same shape as last seen. 2 hours.

9.Attend closing and collect check that is written out to your broker, not you. 1 hour.
10. Drop your check off to your broker's office where they will take their cut and then give you a check for 30-35% less than the first check. (30 minutes).
11. Don't calculate the hours spent on the deal because it will piss you off. But know that you did a good job and that buyers are sellers someday and selling a house is much less work for a realtor.
12. Enjoy seeing the money deposited into your account until tax time where as a 1099 Independent Contractor you will pay a ton of tax and bring home 40 percent less than the amount deposited.
13. Hope the next deal you get is a seller so you don't have to work as much for the same amount.

LOL…. Good on you.

PS #5 is only in NJ.

But I wouldnt know HA!

[BillsFan]

But your client really wants to see the house. What are you going to do? Tell said client it's not worth your time?

Market value

[BillsFan]

Curious...Is that what you tell the buyer who wants to see it?

Market value is the only thing sold.

[pavi69]

A $350,000.00 house would get you around $3k… how much time are you really spending on this as a buyers agent. This is the reason people think realtors are douchebags, and why the popularity of eliminating them is rising.

$2,650 is .75% of 350,000. You have to factor in all the lookers that never buy. I got out of real estate because CPAs with five years' experience make more than the top realtors in Texas
Do realtors in Texas make good money?
As of Mar 8, 2024, the average annual pay for a Licensed Real Estate Agent in Texas is $76,823 a year. Just in case you need a simple salary calculator, that works out to be approximately $36.93 an hour. This is the equivalent of $1,477/week or $6,401/month.

[Spot-a-saurus]

When you have bidding wars, no inventory, cash buyers that decline inspections like we've had in recent years everybody is a real estate expert that can sell their homes themselves. When things normalize top realtors will be valuable once again. A top realtor works their ass off, and is on call more than a doctor.

Yea in the market we’ve experienced from mid 2020 till the last few months, anyone could put a sign up and sell a house. It was so easy that it gave the misconception there was no work involved. To be fair, in a crazy market like the one we are just exiting (which is debatable) as a listing agent you could put a for sale sign in front of a lemonade stand and have multiple offers that waive inspection and appraisals.
In a normal market it’s not so easy and like others have stated, this “normal” market will be the death of many part time real estate agents that simply entered the market for “easy” money