Zillow Advice: Selling Process - What a real estate agent really worth?? Shouldn't we pay these folks based on effort and time? http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ Zillow Advice | Zillow Real Estate What most people fail to ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ What most people fail to realize is that a real estate agent does not set the commission based on what they will do specifically for you. They attempt to make an amount that will sustain them through all of the work they don't get paid for. Most agents show houses day after day, put in some offers, but usually only seal the deal on a very few of those. It is a full time job just to make 3 or 4 deals a month. There are many expenses that come out of the pocket of an agent. Especially with smaller firms, the agents may have to pay for advertising, fuel, etc. <br/><br/>Also consider another reason for the commission amount. Incentive for another agent to show and sell your home. If you have your home listed at a low commission rate, an agent representing a buyer may overlook your home and sell their buyer another home because the commission is higher.<br/><br/>If a home sells for$100,000&nbsp; with a 6% commission The commission is split sometimes 50/50 between listing agent and selling agent. That means the listing side gets $3000 and the selling side gets $3000. But that is not where it ends. Most brokerages take from 25% to 50% of that number. At 50% your listing agent would only receive $1500. Out of that is the stuff I mentioned before such as advertising, fuel and don't forget association dues such as the local MLS and Realtor association. If you was to calculate how much an agent makes per hour&nbsp;if they&nbsp;only sell&nbsp;1 or 2 homes&nbsp;a month. It would probably be closer to minimum wage. Bottom line is that you pay for someone to find a buyer for your home. The commission is not the problem, if your agent can't sell your home. Fire him/her and hire someone else. Thu, 08 Mar 2012 01:56:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2012-03-08T01:56:00Z You are the client, you can ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ You are the client, you can say no to this broker and negotiate an amount that you feel is "fair".<br/>Best of Luck to you. Fri, 25 Nov 2011 04:23:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2011-11-25T04:23:00Z Realistically, the percentage ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ Realistically, the percentage is split between various entities. Buyer's agent, listing agent plus the Brokerage firm. When all is said and done, my 3% is actually 1.5% in various cases. <br/><br/>Also, depending on the value of the home, fees are adjusted accordingly, but yes, fees can be negotiated, however there is a minimum which can not be breached and then again, how well will that agent work for you for that fee? It really depends on a variation of components whether it's feasible or not. Sun, 16 May 2010 16:12:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-16T16:12:00Z Hi Joseney21,Following is ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ Hi Joseney21,<br/><br/>Following is a cut &amp; paste of my response to why leaving out #7 is a problem for a Broker.<br/><br/>***<br/>Item 7 is kind of hard not to include. I believe the majority of people will stick to the deal and not take advantage of people, but there are always some that might give in to the temptation of letting the listing expire and then contact a buyer that put in the offer. That condition is to reduce the appeal of that temptation.<br/>&nbsp;<br/>Perhaps, modify item 7 to:<br/><br/>7) if seller sells to any person or their relative&nbsp;that submitted an offer&nbsp;during listing period then seller will pay listing agent 1.5% of list price fee irregardless of whether another listing agent was signed up.<br/>***<br/><br/>So,&nbsp;reducing item 7) to this way should be a fair compromise. <br/><br/>By the way, cute doggie.<br/> Sun, 16 May 2010 16:03:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-16T16:03:00Z I understand this is hypothetical ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ I understand this is hypothetical but i dont see why #7 would be a problem if it was totally left out. <br/><br/>At the moment we have a system where agents, inspectors, mortgage brokers and appraisers are all connected and may go behind a buyer's/seller's back to get their money (not necessarily the in the best interest of their clients). <br/><br/>Having a system where a seller could contact a buyer only shows compromise on that side and it would be between two strangers. <br/>sounds like it would be a better system without #7 Sun, 16 May 2010 15:38:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-16T15:38:00Z If I were in your situation, ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ If I were in your situation, and the broker implies that it is a done deal.<br/><br/>I will ask him to go for 4% and be willing to settle for ~4.5%, especially if he does not need to split with the company.<br/><br/>Since you mentioned the word potential, I assume you are still interviewing. It might be&nbsp;a good idea to let him represent you for this one single deal only, make it clear in writing that you may sign up with another agent and he is only for this one buyer. That way you can continue to interview other agent and select one based on objective analysis, not on a potential easy deal.<br/><br/>If you selected another agent based on his/her merits, then word the listing contract&nbsp;such&nbsp;that they are exclusive for all except that one buyer the&nbsp;broker claims to have.<br/><br/>I wish you&nbsp;good luck and successful sale.&nbsp; Sat, 15 May 2010 21:13:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-15T21:13:00Z You are the client you can ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ You are the client you can negotiate. You just need to be sure that you do not compromise too much professional service in the process. It is a balance, but I think it is smart to negotiate it before you list. Fri, 14 May 2010 13:34:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-14T13:34:00Z My potential agent is a broker ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ My potential agent is a broker &amp; wants to represent both sides, so his cut would be 5% of total sale ($35,000) Fri, 14 May 2010 07:10:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-14T07:10:00Z You obviously have NO idea ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ You obviously have NO idea how it all breaks down.<br/>The agents doing all the work wind up with a pittance.<br/>The way you spell it out, is not even within the realm of reality.<br/> Fri, 14 May 2010 06:46:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-14T06:46:00Z Hi Workabee, ouch! your stings ... http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ <p>Hi Workabee, ouch! your stings are still as sharp as ever. But, the sad thing is some of your observations are valid.&nbsp;<br/>&nbsp;<br/><br/>Hi Hpvanc, it was an interesting discussion and I will keep it in mind. Perhaps&nbsp;3&nbsp;years down this path (if I am successful and persist in this industry), I might give this some serious thought as a basis for operation. In the meantime, my current&nbsp;focus is on learning and preparing to "walk" first.<br/><br/>Call me naive, but I&nbsp;aspire to be a different kind of sales. I intend to fully carry out the part about due deligence, utmost care and client's interest above all else in my transactions. That will be part of the value that I intend to add to their sales/purchases. In return I&nbsp;expect full&nbsp;commitment and a fair compensation.<br/><br/>:) Don't start with what fair is, everyone have different standards. And I don't want to get a sting from Workabee.<br/><br/>Nice meeting you, take care and see you around zillow's Q&amp;A.</p> Fri, 14 May 2010 05:20:00 GMT http://www.zillow.com/advice-thread/What-a-real-estate-agent-really-worth-Shouldn%27t-we-pay-these-folks-based-on-effort-and-time/349345/ 2010-05-14T05:20:00Z