I do believe you can negotiate whatever rate you want ? I have seen several agents advertise for less when we lived in The Houston Metro Area a few years ago . . .
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getting out of real estate deal on home
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Originally posted by Burnadell View PostWell, it ticks me off that people would take of advantage of the good TBHers who so willingly offer their expertise in certain fields, such a s legal, real estate, mechanical, family issues, etc. and hold out information that is needed to evaluate the problem.
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Originally posted by lnester View PostGlad you got out of the contract.
[soapbox time] Why is 6% some magical number? I will tell you - collusion! Why can't you and I find out the price of a house sold in Texas unless we belong to MLS? I'll even pay the $300 fee to belong to the MLS of DFW (or whatever area I live in at that time)!! Ohhhh...you mean I can't pay to join the MLS unless I am a "realtor"? B. S. [/soapbox]
Agents that sell big commercial properties don't get 6% so why do residential agents get the magical 6% number? That's a ridiculously high % of a deal.
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Originally posted by lnester View PostGlad you got out of the contract.
[soapbox time] Why is 6% some magical number? I will tell you - collusion! Why can't you and I find out the price of a house sold in Texas unless we belong to MLS? I'll even pay the $300 fee to belong to the MLS of DFW (or whatever area I live in at that time)!! Ohhhh...you mean I can't pay to join the MLS unless I am a "realtor"? B. S. [/soapbox]
Agents that sell big commercial properties don't get 6% so why do residential agents get the magical 6% number? That's a ridiculously high % of a deal.
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Originally posted by down2hunt View PostCommissions are negotiable. Some agents are worth it, others aren't even worth 1%.
The listing broker (my agent) got 2% which he split with me on customs that he brought to me, the buyers agent got 2.5%.
On specs, he got 2% and the buyer's agent got 2%.
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Ok so I apologize if I wasted anyone's time... I didn't think u guys would want to read two pages of nonsense so i was brief.... I wasnt directly asking for opinions on right or wrong but just the fact that if it was possible to back out based on the contract and willing buyer.. that's it
Sorry to mislead
Admin please delete this
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Originally posted by lnester View PostGlad you got out of the contract.
[soapbox time] Why is 6% some magical number? I will tell you - collusion! Why can't you and I find out the price of a house sold in Texas unless we belong to MLS? I'll even pay the $300 fee to belong to the MLS of DFW (or whatever area I live in at that time)!! Ohhhh...you mean I can't pay to join the MLS unless I am a "realtor"? B. S. [/soapbox]
Agents that sell big commercial properties don't get 6% so why do residential agents get the magical 6% number? That's a ridiculously high % of a deal.
I know people that arn't in real estate think all we do is drive arouind, answer a few phone calls, lay around the house and collect our checks. That is not true at all.
First of all, It costs alot to be in real estate. MLS dues, license fees, online and print advertisements...all cost money. you spend the same amount advertising a property whether you sell it or not. no reimbursment unless agreed upon before hand. not to mention fuel, on the road costs and other incurred costs. It costs me around $100 to show a ranch in fuel, truck washing, food, water, etc. and this is before we even have a contract on the table. after the contract is in title a broker has to deal with inspectors,appraisers,other brokers,escrow agents,loan officers and a slew of other people. On some deals we play the part more of general contractor than broker on getting a ranch ready for the open market.
a typical sales person in other industries normally get a 10% sales commission on closed sales.....yet its deemed "too much" alot of times for a broker to collect a 6% commission. Most of the time they only collect 3% since most deals involve a buyers broker. I wonder where this common consensus got started?
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Originally posted by Atfulldraw View Postthe house is worth what price a willing buyer and seller can agree on.
I've had two appraisers vary by almost 20% on a 250K house. The first one mistakenly thought he set the value.
Unfortunatly, apraisers are not always on the same page. I'm not saying it isn't a good idea to get your property apraised up front, but be aware that when the buyers, lender apointed apraiser comes along, it could be different form the previous one.
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Originally posted by txtrophy85 View PostIf a property won't appraise then it's not worth the asking price. May be worth it to the seller, if he wants to ante up the difference
Paying $250k for a $230k house dosent make the house worth $250k
Thats the point of appraisals in the first place, to establish value
But I'm just a real estate broker, what do I know?
If you have a handful of offers at $250k and some appraiser says it isn't worth that then I'd laugh in their face. A seller gets the same check whether that money is coming from an all cash deal or a bank financed deal. If a buyer's bank won't lend them but 80% of what their appraiser says the house is worth then I don't care. The buyer would just have to come up with the difference in cash or I'm moving on to the next buyer at my already established $250k value.
I've closed over a billion dollars in RE transactions and I can tell you that the appraised value is rarely a true indicator of market value.
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I guess this thread has been beaten to death already, but I'm curious how you know it should have been listed for $265k-$270k? It sounds like it took a week or a little less to get a full price offer and other offers were lower. Is it because you got offers in the first week? Or someone else told you it should have been listed higher? Just curious.
You also stated the buyer will pay any and all cost. Like already mentioned just counter back with what price you want. I’m sure the buyer won’t be too happy with a counter higher than list price, but at least you will have tried. Otherwise it just sounds like you decided you don’t want to sell anymore or just want to sell it on your own and save on the commission.
In any case you got out of it, but I hope you at least offered some compensation to the Agent. He/she may or may not take it, but contrary to popular belief it does take a lot of time, effort and money to get a property listed. I can also tell you your agent spent A LOT of time dealing with a multiple offer situation. He/she brought several offers to the table with a price you agreed on. Without the entire story hard to say if he/she did some things wrong that wouldn’t warrant this gesture.
Like already mentioned you might get an appraisal done before you try to sell next time. Just make sure and tell the appraiser you want it done for a “30 day sale” or something that keeps it competitive with the market. You will just need to disclose that you had an appraisal done.
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I have read this entire thread and realize the dispute is "resolved." However, with that being stated, I know some very good realtors who price some of their listings in good markets purposefully under what they believe the house will eventually sell for to generate traffic/buzz/multiple offers/best and final offers with multiple buyers. If this was the strategy the same certainly should have been discussed with you but just because the offers rose to full asking price (or even higher) does not mean the realtor did not do their job/homework. Strategy is different in a saturated market; however, can be fruitful in a hot market.
Agree with others--VALUE IS WHAT SOMEONE IS WILLING TO PAY. Who cares if a house only appraises at $500K if buyer is willing to pay $575K and pays cash or several hundred thousand dollars down?
It was also stated above that Farm/Ranch listings are always 6% (3/3). EVERYTHING is negotiable! I know. :-)
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Originally posted by lnester View PostGlad you got out of the contract.
[soapbox time] Why is 6% some magical number? I will tell you - collusion! Why can't you and I find out the price of a house sold in Texas unless we belong to MLS? I'll even pay the $300 fee to belong to the MLS of DFW (or whatever area I live in at that time)!! Ohhhh...you mean I can't pay to join the MLS unless I am a "realtor"? B. S. [/soapbox]
Agents that sell big commercial properties don't get 6% so why do residential agents get the magical 6% number? That's a ridiculously high % of a deal.Originally posted by lnester View PostReal estate developer.
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Originally posted by Chance Love View PostHmmm...that's funny because I have always thought y'all make a ridiculous amount of profit. In your line of work I would think you should understand how much work is involved in Real Estate transactions? It's a risk/reward game for sure. The higher the dollar amount the higher the risk, therefor the higher the potential reward. There are NO guarantees for us (agents). We do all the work in the hopes of earning a fee. I am in Farm and Ranch sales, and RARELY ever see a 6% listing fee in my areas. Personally I think the residential guys should get an even higher fee. Most work crazy hours, all weekends, ect.
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