Profile picture for Whit Suber

Whit Suber

Agent

4 Recent Sales (last 12 months)

President, CEO (29 years experience)

Specialties:
Buyer's Agent,
Listing Agent,
Consulting,
Appraisal

Advice

  • (135 Contributions,
  • 1 Best Answers,
  • 126 Helpful)

Contributions are sorted newest to oldest.

Bird Dog Fees: Sellers openly offering to pay anyone who produces a Buyer

I have Sellers that are openly offering to pay cash to anyone (agent or not) that produces a buyer.  I am very familiar with laws in my State which address this issue.  How does your State deal with Bird Dog Fees?  Any suggestions or opinions on the practice?  Could this become a helpful tool for Sellers?

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Commissions: Seller w/$300K home pays $18K commission, Seller w/$1mm home pays $60K. Why?

Answer

I LUV the Hick.Anyway, maybe we should get off this Million Dollar home thing b/c apparently you can't sell one of those without buying yourself a Mercedes Benz.  Who knew?  Let's use the example of a $400K and a $200K home.Surely you can sell a $400k home in Buick, right?Commission offered in each case is $18K.  Which listing do you want?

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Commissions: Seller w/$300K home pays $18K commission, Seller w/$1mm home pays $60K. Why?

Answer

OK Agents: Your rich uncle wants to sell his beach house compound.  There is the Beachfront home worth $5.5MM and the Guest House worth $450K.  Problem is he's got both a niece and a nephew in the real estate biz.  He's going to sell the houses separately and he's giving first choice of listing to you.  But to be somewhat fair he's offering a $250K commission on the Beachfront house and a $45K commission on the Guest house.  In each case he insist you offer a 3% commission to the buyer's agent.Which listing do you choose?

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New Real Estate Licensure Requirements

Response

SC is considering similar changes.  My understanding though in our case is that a Broker (new or old) will be able run their own brokerage with little or no licensing changes.Our proposed structure is similar to the model we (and many other states) use for appraisers.  Simlar to apprenticing, a new agent would have to work under a more experienced agent (Broker) in order to become a Broker which they maust achieve within a certain timeframe.I think our rule as proposed could have an enormous impact on large brokerage houses.Surprisingly, I have not seen any organized opposition from the large brokerage houses on this.  I really don't know what they are thinking on this but they believe it won't negatively impact them if passed as written, they are wrong. 

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Commissions: Seller w/$300K home pays $18K commission, Seller w/$1mm home pays $60K. Why?

Is there now or has there ever been any real justification for the structure of the commission?  Any honest agent in the business would have to admit that there are no additional tasks that must be performed.  No additional costs.  In fact most often higher price range buyers and seller are more savvy and require less hand-holding than those in lower price ranges. IN your mind, what is the justification? IS there a fee cap that should satisfy the agent no matter the cost of the property?

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Are real estate agents really necessary anymore? If so, in what way?

Answer

"And one thing that is pretty scarry is the clearly and most obvious important thing we offered 15 yrs ago is hardly even mentioned anymore.""What is that?"  from SoCalanswer: Information.Back in the day we controlled the information. If a buyer wanted to know what was for sale, they had to ask us.  If they wanted to know what recent sales prices had been, they had to ask us.As you (SoCal) and Dan and Dunes have pointed out, we don't control the information anymore.  Once, it was clearly our msot valuable asset.And you just pointed out, with our most valuable asset now worthless, what are we worth?  "considering the cost"  That is the ultimate question regarding the profession.  It's the ultimate point of the whole post and its no surprise that it's the non-agents on the board that get it.  While the agents post laundry list of the little things we do, they are completely forgetting that they are the LITTLE THINGS.  The big thing, the information, we no longer control.And I've got even scarrier news; we starting to lose control of the little things too.

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Are real estate agents really necessary anymore? If so, in what way?

Answer

What I find so interesting is that most of the answers from agents consists of sales pitches I have always given to as to why they should hire me as opposed to some other agent.But the bigger questions is, do they need any of us?  Is it even smart to use us considering our costs?When I started 20+yrs ago it was hardly a question of whether we were necessary.  FSBO'ing was very difficult and they were place in a clear and obvious disadvantage.  That disadvatage was; nobody knew their house was for sale.  My old sales pitch to FSBO's was "unless your buyer happens to drive by your house, they'll never know it's for sale."   Well today, we are all logged into the site that changed all that for good.20 yrs ago even the most stubborn of FSBO's knew they were at a disadvantage.  20 yrs ago there was no functional world wide web, there was only a web of local agents who pooled our knowledge and information together in order to help each other and help our clients.  It was our most important and invaluable function.  Today, it's meaningless.

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