Dirt Merchants - questions about hiring a realtor

[liv2ski]

The buyers % is always 3% with Redfin so in today’s market of 5% total you really don’t save much with Redfin.


Sent from my iPhone using TGR Forums

Not true in CA. I sold a Redfin listing and was paid 2.5%. I saw a Redfin listing in 92118 with 2% comp to the B.A. Commissions in CA are negotiable.

[4matic]

Always pay buying brokers their 2.5%.

Sent from my SM-N950U using Tapatalk

I question that with all the digital marketing. What do they really do nowadays since both sides of the sale are incentivized by a sale? If you market a home properly, which is really easy compared to most of the half ass mls listings, the buyer already has seen the home.

[liv2ski]

^ agreed, BUT you just never see BA comp less than 2% in CA. REX offers a 2% total listing/sell fee, but they need to double end it to do that.

[4matic]

Rex gives buyers a chance to not pay buyers commission by dealing direct or buyer negotiates commission directly with their agent.

If you have a great, well presented home, the buyer will want to see it.


Sent from my iPhone using TGR Forums

[RootSkier]

Attachment 280749

You can be a licensed real estate sales person but the local boards make you join the REALTOR cabal to actually participate. How this serves anyone is a mystery to me.

Oh wait, that's it: lobbyists.

[Ted Striker]

My wife agrees. She's particularly annoyed by the fact that they use the dues to advance a political agenda that she doesn't agree with.

[liv2ski]

^^^The more shit they MAKE you join, the more they collect in fees / dues. Simple as that.

[VTeton]

When I got my real estate license, jackass teaching class says he won't show 2% listings. Offer a 2% in town and that house will be the one there wasn't time for on a busy open house day. This stuff happens. It shouldn't.

2% of a million is still 20 gs to buying agent. Split it 50/50 w firm. Still 10gs to buying agent.

Sent from my SM-N950U using Tapatalk

[RootSkier]

When I got my real estate license, jackass teaching class says he won't show 2% listings. Offer a 2% in town and that house will be the one there wasn't time for on a busy open house day. This stuff happens. It shouldn't.

A good strategy if your clients are too fucking stupid to look at Zillow/etc.

I cannot believe the industry still exists in its current format.

[Self Jupiter]

When I got my real estate license, jackass teaching class says he won't show 2% listings. Offer a 2% in town and that house will be the one there wasn't time for on a busy open house day. This stuff happens. It shouldn't.

2% of a million is still 20 gs to buying agent. Split it 50/50 w firm. Still 10gs to buying agent.

Sent from my SM-N950U using Tapatalk

Jackass is right, teaching that to a class is ridiculous.

Good or great agents get a lot more than 50/50 split on that % these days, at least in Boston.

Also, thirding the NAR dues as at least feeling like extortion.

[neufox47]

Jackass is right, teaching that to a class is ridiculous.

Good or great agents get a lot more than 50/50 split on that % these days, at least in Boston.

Also, thirding the NAR dues as at least feeling like extortion.

Awesome that dude admitted to a room full of people that he completely shirks his fiduciary duty to his clients. Like any profession there are some good ones with the bad.

I sold my condo in Boston in 17 with a 2% commission and paid $300 for signs and to list on the MLS. I kept it on the market for longer than a realtor would have, 10 days, and bid up the price to well over ask. Got 4 people to go slightly above their final offer. No way any realtor would put in that much work for it. Not sure about VT but in Mass the attorney does the sale anyway. It was stupid easy for the money saved.

[neufox47]

Attachment 280749

Of course it's a racket, but so are most things. He can tilt at windmills or sell their house.

More like, “This Uber driver is a shitty driver, who wants me to drive instead?”

Comparing pilots to Realtors...

[VTeton]

Jackass is right, teaching that to a class is ridiculous.

Good or great agents get a lot more than 50/50 split on that % these days, at least in Boston.

Also, thirding the NAR dues as at least feeling like extortion.

I get 85% but its not my line of work. Just use it for family stuff.

Sent from my SM-N950U using Tapatalk

[oftpiste]

A few good tidbits in this thread and, as always seems to happen in these conversations, a lot of crap and misinformation.

OP, TBH, it sounds like you don't really know what you're doing. If the market there is tough you need even more help regardless of the tools available to the GP these days.

As for engaging a broker? For fucks sake don't list it with the guy that gives you the highest price. That's the oldest old-school broker tactic in the book. "Get the listing no matter what you have to say. Then drop the price to where it will actually sell."

And, the listing price has little to do with what the actual price of the sale is. The market decides that which is what a good broker helps you get to.

Find someone you trust with your best interests. All brokers have the same basic skillset in terms of mechanically helping you get through a transaction. Where they differ is who they are, how they come to the table ethically, and whether or not they actually give a fuck about your experience. Many don't, many are dickwavers.

Find someone you trust, (referral from a friend is usually the best way to do this), discuss your concerns openly, let them answer and then, perhaps, give you the help you need.

[Ted Striker]

More like, “This Uber driver is a shitty driver, who wants me to drive instead?”

I wasn't sure where Root was coming from with his rant about the MLS fees being a racket. I assumed he meant it as a way to keep owners/non-brokers off the listings (it is), and/or prevents brokers from being non-affiliated. Plus, he's right about the NAR. And I had that comic handy anyway.

[bagtagley]

When I got my real estate license, jackass teaching class says he won't show 2% listings.

How does that even happen now? Who is buying a house blind these days? We gave our realtor a list of houses we liked, and she arranged for us to see them. That was pretty much the extent of her usefulness.

[Supermoon]

We are currently selling our house and I 100% am glad that we have a realtor.

We know how to stage a house. I took our pictures. We could easily figure out how to post something up on the MLS.

Where there value has really come in is around the strategy of where to price (go in high and hope for 1 buyer, come in lower than marketing and hope for multiples), responding to offers, flagging things that are out of norm (like what types of fees that we should cover), how to proceed with our multiple offer scenario we are in now and generally acting like our advisors and psuedo-therapists when things got stressful. They even told us to pass on an offer that was at the very low end of what we'd consider and stay on the market.

The whole time we have been in total control of the decisions, but having experienced pros to talk things through with and have our questions answered has been invaluable. They also do a lot more back and forth with the buyer's agent than I ever thought before anything is submitted on paper. I'm glad I don't have to deal with 20 or thirty texts a day.

[AdironRider]

But it is not invaluable, you are paying your percentage off the sales price. That is a hard number and I'd gladly save 10's of thousands of dollars and handle some text messages. On a 500k house you are talking about 30 grand coming out of the seller's pocket. I find it hard to believe going through realtors is getting you 30k in value. Let's say 20k if you want to compare to a FSBO giving 2% to the buyers agent. Even at 100 bucks an hour that is 200 hours work. Your realtor isn't putting that much time into your house, and no realtor is worth 100 bucks an hour ever.

IMO you need to be at a million+ valuation before the realtor is going to get you a higher price that offsets their cost to you when you sell. There is enough of a range at those valuations where you can overcome a 5 digit difference in your net.

[Supermoon]

But it is not invaluable, you are paying your percentage off the sales price. That is a hard number and I'd gladly save 10's of thousands of dollars and handle some text messages.

Since this is the land of dentists, on a 500k house you are talking about 30 grand coming out of the seller's pocket. I find it hard to believe going through realtors is getting you 30k in value. Let's say 20k if you want to compare to a FSBO giving 2% to the buyers agent. Even at 100 bucks an hour that is 200 hours work. Your realtor isn't putting that much time into your house.

True, there's a cost to it for sure. I'm not a dentist, so it's not $30k to us, and we basically made up their fee already in them pushing us to list at a higher price than we had expected we could get. I think we got much less value from them as buyer's agents, but it didn't really matter because it came out of the seller's cut.

Edit: Obviously we paid for it because the fees are baked into the market prices, etc, but it wasn't as direct of a fee as it is when you are the seller

[goldengatestinx]

It's simple to find comps if you're semi internet literate. Find the county assessor site, do some searching. Find recent sells from your area. Piece of cake.

[Ted Striker]

@ ar
The problem with that logic is that buyers want a discount knowing it's a fsbo. They view the lack of commission as the wiggle room.

[AdironRider]

Doubtful, assuming you don't make the mistake most FSBO owners do and list it too high. Given FSBO's are trying to maximize the amount they get it is an easy trap they fall into.

Price it at market value and you will get market value, the buyers agent will most likely tell them this or they are already going to know if the price is within reason from 15 minutes on Zillow.

[oftpiste]

Zillow's algorithms are not to be relied upon for something so important as pricing for an actual sale. They are nothing more than a [very effective] marketing tool, and sometimes way out of whack.

There are reasons people list, often even after attempting a FSBO and it ain't about exposure or the ability to find comps.

[krp8128]

G,

Shoot me a PM if you want to discus some specifics. We're probably overdue for a beer anyways...

The area is obviously different then most of what people are used to, comps may be hard to come by. You had any appraisals done recently? How do they compare to Peru tax assesment?

My guess is you should split the difference and list it for sale. My place was accessed by the town for 30% more then I paid, and I paid too much. Plus you should consider what price makes you whole.

BTW if you've got anything good for sale (furniture, tractor, tools) let me know!

[Ted Striker]

Price it at market value and you will get market value.

Market value of residential real estate includes commissions.

And the buyers don't even see the commission, they just see the asking. But when the buyer knows you're not paying one, that difference is in play.

Doubtful, assuming you don't make the mistake most FSBO owners do and list it too high. Given FSBO's are trying to maximize the amount they get it is an easy trap they fall into.

FSBO implies one of two things: waiting for a sucker, or overextended and desperate.