Replies (32)
- SoCal_Engr
- Contributions:6604
Of course, there also is a minimum value below which I would not expect a realtor to work (i.e., fee doesn't offer reasonable expectation of covering level-of-effort expended).
- Bob Sendel, "reprobob1"
- Contributions:135
All fees are negotiable! Don't be afraid to ask for a lower fee. The agent may agree or justify why they charge "X" percentage. Not all Realtors are created equal. Do your homework and check out several agents. I always like it when I'm competing against someone for a listing.
Good Luck!
Bob
- rockinblu
- Contributions:7207
http://www.trulia.com/blog/rockinblu/2008/12/i_ve_got_my_fingers_cros
- FriendshipProperties
- Contributions:782
- rockinblu
- Contributions:7207
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I think Friendship has went a little overboard with that statement. I don't think it's against the law for an agent not to negotiate his/her commission. They just can't conspire among each other to set a given number. If one agent won't negotiate, you should have the opportunity to shop around until you find one that does. If you keep getting the same answer over and over from each one, it might be time to make that call to the state attorney's office.
- Mack McCoy, "Mack McCoy"
- Contributions:2094
- Alex Saenger, "AlexSaenger"
- Contributions:633
Lets talk. I hear your frustration. What I would say is let me meet with you and show you why I am worth it. The biggest point is, no marketing = no sale. And marketing IS expensive. That said, I own a real estate marketing company that many area Realtors come to. Therefore, my costs are a little less than what others pay. I would be happy to discuss how that can work in your favor. If you would like to talk, give me a call or drop me an email.
Alex
- Jeff Konstant, "jkonstant"
- Contributions:1970
Agents don't generally determine the commission. It is the broker or owner of the company that does. In addition, it is the big companies in the industry that control the costs and make it difficult for the little guys to compete. The higher the costs for a brokerage or realtor, the bigger the advantage to the larger companies. It is far easier for a group like Reology to fix or manipulate the market and costs.
http://www.realogy.com/about/rfg.cfm
- Mack McCoy, "Mack McCoy"
- Contributions:2094
- nealadler
- Contributions:209
Commissions are always negotiable. However, like they say you get what you pay for.
- PrincessVespa
- Contributions:4
Am I wrong?
- SoCal_Engr
- Contributions:6604
"Wants"? Any fees and/or commissions should be spelled out in the listing agreement. If the "marketing fee" is in the listing agreement, then you need to pay it. But, IMHO, "marketing" and any other "overhead expense" is part of what's covered by the commission.
"To add to this discussion, I'm selling my home and we've had 2 offers in 8 weeks. Our home is very marketable and priced right. Our agent hasn't brought in one client; they've all been from other agencies. I agreed to 6% because I know he's splitting that with the other agent. My beef is that he also wants me to pay a $325 marketing fee on top of his commission. I'm going to decline to do so, because his marketing fees should be covered by his commission."
Are you sure the $325. is not a processing fee for the conveyancing department? This covers the paperwork, recording of deed, etc. Also, most of the time the listing agent will not be the one that shows the property. They are hired to market the property to everyone else and since you are getting traffic and had 2 offers in 8 weeks this job is being done. What if he is the one that actually does bring the buyer are you then going to say that the buyers agent 3% was not earned?
- PrincessVespa
- Contributions:4
I do believe my realtor has earned their 3% on this house, and certainly the buyer's agent has earned their 3%. My realtor was unwilling to cut the commission for this house unless they bring a buyer AND I include them in on the next home purchase, and only then by 1.5%. We are not using a realtor for our next purchase, as we are building a custom home.
So in summary, I've learned my lesson. If they want to nickel and dime with fees, I will have to pay them. Then the realtor will get their 3% for the sale, but that is all they will get.
No you are not wrong to question this.
- Jeff Konstant, "jkonstant"
- Contributions:1970
- Brian Wahl, "brianmwahl"
- Contributions:8
- Brian Wahl, "brianmwahl"
- Contributions:8
Wow that´s a lot to digest. Let´s start with licensing requirements. I totally agree with you that too many states are too lax in their requirements for licensing and it is too easy for people to get, and to keep their Real Estate licenses. Continuing Education for those who practice Real Estate should not be a mere formality; those working in the field should indeed be experts and should be able to prove it.
Next, I disagree that "There is almost no way for the average person to distinguish between an agent that will give them .5% worth of service vs one that will give them the full 3%." Before picking an agent to work with, they should talk with that agent and ask a lot of questions. Is that person helpful? Do they appear honest? Do they openly admit that they do not know something, but that they will find out (not just give an off the cuff answer)?
In regards to the agent that you were involved with in the purchase of a foreclosure. Was that agent YOUR agent or was he/she working as a Seller´s agent? Did you have a signed Buyer´s Agency Contract with that person? If so, maybe you should have considered negociating the fee (maybe a flat fee for their handling the deal) when you hired them. If not, then when you felt like you were not getting well serviced, why didn´t you fire them and hire some one who could preform to your expectations?
Finally regarding your comment " ...the greater percentage of agents bring little to no value to the deal other than their ability to produce information." I as an agent, totally agree with you. The ability of a Real Estate agent to produce information, is the biggest value that he/she brings to a deal. Information is what we peddle. We don´t sell anything tangible, we are a service industry. We provide information: What is on the market for sale (Buyers assistance). How to jump through the hoops of buying. Information to the public about what is being sold (marketing of a property). How to protect yourself legally. Who can a buyer get to do repairs (plumbers, electricians, carpenters, lawn care, snow removal). etc.etc.
If your agent isn´t meeting your expections, talk with them and explain what your expectations are. Then, feel free to fire him/her and get some one who will meet your expectations.
I am a firm believer that agents must provide value to their clients or our business is dead. Buyers and Sellers need to understand 1)Who agents are working for 2)Who is compensating the agent and how much they are getting compensated 3)What does the person paying for the service get in exchange for what they pay.
Fortunately, today with the internet and websites like Zillow.com, the consumer has much more control and knowledge available. Technology has changed the business for the better.
- Jeff Konstant, "jkonstant"
- Contributions:1970
- Patrick Duffy, "coachduffy10"
- Contributions:3
Please be in touch if you need any further advice.
Patrick C. Duffy
RK Ashton Real Estate
- Jeff Konstant, "jkonstant"
- Contributions:1970
Agents get paid very well for what they do. Too well by most standards and the pay is high because of the failure rate, not because of the quality of work.
It seems a little unfair that a roofer with many more years of training and expense than most agents. This poor guy will spend 60 hours this summer on top of a roof here in central Florida (pretty friggin hot) and might walk away with $1000. The company he works for might have 6 guys earnng a total of $6000 and the company will charge $12,000. After all that is done, I will arrive, listing agreement in hand, and with a lick and a promise, a paycheck with considerably less effort than the roofer/s and for about the same amount of money.
I'm not suggesting 6%, 5%, 4%, flat fee, limited service, a la carte or FSBO, but yes commissions are negotiable and agents need to step back and take a look in the mirror. We are not worth what we get paid. I get paid far more than many agents who I consider to be better at their job than me. How many years of routine work per patient must a doctor work to earn the same money I earn per client? How many clients must an attorney retain to earn what I earn in a year? Why should I earn, in one year, what a carpenter earns in three or more?
Finally, before anybody comes on and starts talking about 50/50 splits with their broker and paying taxes, get a better deal with your broker and don't forget to mention all the tax breaks we get.
- davidslavin
- Contributions:418
$12,000 commission
- $ 6,000 commission to the buyer's agent (3% of sales price)
$ 6,000
- $ 2,000 estimated amount of marketing expenses
$ 4,000
- $ 2,000 50% split with broker including E&O insurance
$ 2,000 Net to the agent
So basically you have a Realtor working for an estimated 2 to 4 months to get a house from listing to closed to make only $2,000 net. If the agent is willing to reduce their commission then they will make even less money.
What would you do if you were in their shoes?
- SoCal_Engr
- Contributions:6604
- Grant Van Der Jagt, "Attorney and Realtor"
- Contributions:352
- Anna M Brocco, "anna b"
- Contributions:590
I offered to have the front and back patio areas landscaped 1,480.00
I paid for the vurtual tour 200.00
I "fronted" the money for the staging 3,000.00
Paid for advertising 500.00
In October 2008 the Market went in the toilet, it was already the worse year in Real Estate in 30 years.
Home went into default. I was never reimbursed
I would do it again today if I have to.
Reduced eventually to 650,000
sold at aution $540,000
- Mack McCoy, "Mack McCoy"
- Contributions:2094
We, on the other hand, do not broker real estate because we're on a mission from G-d. We provide a valuable service, which not everybody wants to pay for. C'est la vie.
The way for us to justify our price is to demonstrate value. And if the prospective client does not see the value, we both are free to move on.
- NiceRealtor
- Contributions:1037
Realtor fees
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