Realtor Commissions

[BertramBass]

Some see the value of hiring a Realtor, some don't. Keep in mind that 6% is usually split, 3 and 3. Knock out about 25-30% for taxes, some for various association dues, marketing/advertising, photography, sponsorships, fuel (ranch guys can burn a lot of fuel!), equipment upkeep, a little for retirement, insurance on everything, health insurance, ECT, ECT. It costs a lot to do what we do. It can be a high-risk-high-reward deal for sure. Oh ya, and when we take on a seller or buyer as a client, we do everything in the HOPES of getting paid...it's not guaranteed. How many of y'all are willing to work for someone for months and risk not getting paid a dime, and worse--actually losing $$?

I am going to skip replying to the condescending children calling people whiners, calling posts idiotic, or explaining things with crayons to amateurs and millennials, lol and post on an intelligent thought out response...


The various association dues, marketing/advertising, photography, sponsorships, fuel, equipment upkeep, insurance on everything, health insurance, ECT, ECT are pretty much all... wait for it... tax write offs. So if after all these write offs, you still have to pay 25 to 30 % taxes, you are one off the best realtors out there. Or have a real chitty CPA.

OK. Go......

[BJ DUPLECHAIN]

I've paid the realtor fees on several transactions. It is worth it big time to me not having to worry about paperwork, etc. All I do is show up at the closing with a check.

[raider19]

Listing Spark is a great service. Very reasonable

[hooligan]

I'm not a realtor. I'm in the AC business. So I hear the same thing about my trade

I’m in sales and get it multiple times a day. I 100% understand it’s the service your paying for but why would someone not want to have more money in their own pocket?

For those in a rush it probably doesn’t make sense to do FSBO but if you aren’t on a timeline and can try it for a month or two why not. Yes there is a chance a realtor MIGHT get you more but there is also a big chance you come out with less after the sale. When I’m selling and moving on I want to squeeze every cent of equity I can out to put towards my next house

Oh and HVAC people are worth their weight in gold in TX!

[Captain39]

Sounds like many of you need to get your real estate license. I mean since they make $300 a hour and $400k part time. I have a lot of rentals and hate paying my HVAC guy $300-500 for about a hours worth of work; but I am Not going to be a HVAC guy, so I keep paying and hope I bought his favorite whiskey...…..

[Chance Love]

I am going to skip replying to the condescending children calling people whiners, calling posts idiotic, or explaining things with crayons to amateurs and millennials, lol and post on an intelligent thought out response...


The various association dues, marketing/advertising, photography, sponsorships, fuel, equipment upkeep, insurance on everything, health insurance, ECT, ECT are pretty much all... wait for it... tax write offs. So if after all these write offs, you still have to pay 25 to 30 % taxes, you are one off the best realtors out there. Or have a real chitty CPA.

OK. Go......

Man I was just trying to point out a few things people may not think of. No whining here. Like I said, some see the value and some don't. I really like and appreciate working for those who see the value in our services. It is a great responsibility that I don't take lightly.

MOST of the time an agent will net a seller more $$ than a FSBO will get on their own. MOST of the time a buyer's agent will save their client $$ versus someone choosing not to use an agent. I've seen it in the ranch game more than once where someone chooses not to hire an agent to represent them in an effort to save $$...and they end up paying a much higher price for a property that I KNOW I could have saved them a ton on---much more than what I would have made on the deal (some of these buyers are on here).

[PaPhelps]

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[BertramBass]

Man I was just trying to point out a few things people may not think of. No whining here. Like I said, some see the value and some don't. I really like and appreciate working for those who see the value in our services. It is a great responsibility that I don't take lightly.

MOST of the time an agent will net a seller more $$ than a FSBO will get on their own. MOST of the time a buyer's agent will save their client $$ versus someone choosing not to use an agent. I've seen it in the ranch game more than once where someone chooses not to hire an agent to represent them in an effort to save $$...and they end up paying a much higher price for a property that I KNOW I could have saved them a ton on---much more than what I would have made on the deal (some of these buyers are on here).

I have no beef with ya brotha. Great articulated post. Good to see some left out here with some ethics. The other guys can have fun throwin darts up a cowboy tigers butt. Haha. The use of a realtor is very different for me and on a resale I would recommend a realtor. I do think a market adjustment is due in the future. Up to a 300k house at 3% is fair. At $1,000,000 seems excessive. (30k each for 60k) I dont think I bashed realtors in previous posts (without rereading them lol) Just responded to idiotic posts from others.

[LFD2037]

My last house sold before it hit the MLS website, just from a sign out front. The realtor was horrific but got $7,400 ($14,800 but 3% went to buyers agent) for a couple hours worth of horrible work. Pizzed me off.
The house I most recently bought, I saw the sign in the yard before it hit the MLS website.
My realtor showed it once to my wife, then to me the next morning. I signed the contract that afternoon. She had maybe 5 hours involved in this process. She got $8,250 for maybe 5 hours worth of work. $1,650/hr isn't bad! This didn't upset me because I wasn't paying for it. She owns the company so she split this w/no one else.
She helped w/a build we were trying to do & agreed to 1% buyers agent fee since she wasn't involved @ all until closing & did absolutely none of the process except set us up w/the paperwork. She would have got $3K for less than 1 hour of work. Seriously, less than 1 hour!
In this market, all that should be needed is a sign or someone to put you on the MLS. Houses in my 'hood sell for more than asking price & usually w/in 24hrs. In this situation, it's foolish to pay 6%. If I sell this house anytime soon, I will do one of the flat fee companies, if any company @ all.

[jlinville]

My neighborhood is similar to the one you live in. There are 3 or 4 houses in my neighborhood that are for sale by various agents (one of which does it for a flat fee) and they aren't moving either.
I sold my first house FSBO in 2002. We had a contract on it in less than 2 weeks. Even back then the title companies helped out with contracts and such. If I were to sell my house now, I'd do the same thing...FSBO!

[Bulldawg87]

You can list your home FSBO on one of the paid FSBO sites and for about $500-$600, you can then have them listed it on MLS. Pay for the additional picture so you have about 20 pictures. Take GREAT pictures!

You get to list the buyer realtors fee, and list it for about 2%. It's then everywhere a buyer and realtor have to look for it. You basically become the selling agent it's easy and saves you a ton of money and you still get all the exposure.

The Texas contract is pretty standard. Mostly fill in the blank.

You can sell it just as fast as a realtor like this...

Sold my last one in about 1 week like this and had realtors calling me everyday wanting to show it.

[Dushon]

I sold our house myself because I couldn’t find a realtor to back off the 6% commission. Houses in our old neighborhood sell their self. And I sold it for 20k more than 2 realtors said I could get for it. So I saved about 30k doing it myself. Wasn’t hard at all, just some time on the phone.


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[PondPopper]

I have no beef with ya brotha. Great articulated post. Good to see some left out here with some ethics. The other guys can have fun throwin darts up a cowboy tigers butt. Haha. The use of a realtor is very different for me and on a resale I would recommend a realtor. I do think a market adjustment is due in the future. Up to a 300k house at 3% is fair. At $1,000,000 seems excessive. (30k each for 60k) I dont think I bashed realtors in previous posts (without rereading them lol) Just responded to idiotic posts from others.

So how is using a realtor "very different" for you??
Why is 3% on a $1,000,000 sell excessive??
Isn't there a lot of "legal" involved in this stuff?
For the record I know nothing about real estate..

[Chance Love]

I have no beef with ya brotha. Great articulated post. Good to see some left out here with some ethics. The other guys can have fun throwin darts up a cowboy tigers butt. Haha. The use of a realtor is very different for me and on a resale I would recommend a realtor. I do think a market adjustment is due in the future. Up to a 300k house at 3% is fair. At $1,000,000 seems excessive. (30k each for 60k) I dont think I bashed realtors in previous posts (without rereading them lol) Just responded to idiotic posts from others.

Oh I know and I didn't take it that way. No worries here.

[Playa]

We just sold our house this weekend. We negotiated the commission to 4%. In all honesty she earned her $7k. We originally would have priced our house $10k less when we were thinking about doing FSBO. When the dust settled we sold the house for $14k more.

I’m not great at business math, but that seems like a decent swing in our favor when her commissions were only 50% of the additional profit.

If we had done FSBO sure we would have saved $7k... but our net proceeds are higher because we used a knowledgeable agent to help with pricing and negotiation. We sold our house the 2nd day on the market, to the 1st people who viewed it. I don’t think we would have had a problem getting offers, but it’s the pricing minutia and negotiation where she was worthwhile