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Old 10-14-2018, 08:37 PM   #1
Sleepy
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How did you get past the sticker shock of realtor commissions?

Weíve had our house up FSBO for a couple of months now and the wife is really wanting to hire a realtor. I just refuse to. We have no reason to move other than the fact we are looking for acreage. Therefore, my motivation isnít extremely high. (I want acreage, but not for the price of Realtor commissions).

You just chalk it up and say alright, Iíll pay it, or did you just stick it out and wait for a FSBO transaction to come along?


Disclaimer: I know realtors have to make money too. Iím just opting out at the moment.
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Old 10-14-2018, 08:40 PM   #2
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In for replies. We’re getting ready to put ours on the market soon and don’t want to give up 6% unless I have to
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Old 10-14-2018, 08:40 PM   #3
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Wait it out.
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Old 10-14-2018, 08:40 PM   #4
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It's highway robbery in today's market...especially with the internet.

You can pay a fee for someone to list it on the MLS or use a discounted broker like Redfin.

No way I'm paying a full 6%.
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Old 10-14-2018, 08:42 PM   #5
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you're not only paying the realtor for their paperwork side, but also on the exposure of your house to potential buyers. THAT is worth it. Ive seen a house FSBO sit for over a year, hire realtor, 2 offers within 48 hours. in this market, its 100% worth it if you want to sell fast. best possibility is you get more than one buyer and they have a bidding war and you get more acreage!

just my 0.02
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Old 10-14-2018, 08:44 PM   #6
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We just bought a home and used a set fee realtor, 5k flat fee vs the standard 6%... saved us a few thousand.
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Old 10-14-2018, 08:44 PM   #7
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Make friends with a realtor. Got a fee good friends that are in real estate and theru have been gracious enough to discount or waive their percentage so that i had zero fees or just paid the buyers agent fees which werenít that bad


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Old 10-14-2018, 08:45 PM   #8
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Man I know it's a good cut for them but a good realtor will make it super easy for you getting everything done. All you have to do is sign papers. To me it's worth it. Your house will probably be under contract within 2 wks.

I know it's a separate deal however same case. I used the realtor fees to get a deal done. Lady we bought our land from didn't want to pay $16k in realtor fees. Me being the buyer said I would offer an extra $200/acre so fees were covered. She jumped on that. Yeah probably stupid on my end but in the large skeem if life that $16k guaranteed a sub division wouldn't be built next to me!

Point is it may work in your favor.
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Old 10-14-2018, 08:48 PM   #9
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Add the 6% fee to the price of the house.
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Old 10-14-2018, 08:49 PM   #10
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Originally Posted by BertramBass View Post
Add the 6% fee to the price of the house.
Exactly!
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Old 10-14-2018, 08:49 PM   #11
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I have acreage for sale. I'm gonna gulp big time when I pay the 6% on that wad, but I don't want to deal with the tire kickers for two years either, so..........
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Old 10-14-2018, 08:49 PM   #12
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Well, do you like having 100% of nothing or 94% of something? I thought by now that industry would be dead like so many holdovers due to the internet, but they still control the buyer network for sure
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Old 10-14-2018, 08:49 PM   #13
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I guess I am just looking at it as $15K will drill a well, pour a pad, dig a pond, nice pipe gate entry, yada yada yada.

I've offered $3500 to buyers agents, but most haven't entertained it much.
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Old 10-14-2018, 08:55 PM   #14
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In today's market, if the buyers agent doesn't see that they will get the 3%, they will show their customer every property but yours.
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Old 10-14-2018, 08:59 PM   #15
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Add the 6% fee to the price of the house.
While you are at it, just go ahead and add 10% for good measure. All things remaining equal, the market wonít support an extra six percent just because you want to add it.
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Old 10-14-2018, 09:03 PM   #16
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I thought realtor fees were negotiable when you list the property. Some realtors will list it for a lower percentage.
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Old 10-14-2018, 09:04 PM   #17
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While you are at it, just go ahead and add 10% for good measure. All things remaining equal, the market wonít support an extra six percent just because you want to add it.
He can pay the fee or overprice the house. His choice.

Hard to say what a rising market can support.
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Old 10-14-2018, 09:07 PM   #18
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My mom owns a real estate company in Leander. If you knew the work that goes on with it you’d understand. You either want to sell it or you don’t. But the realtor fee is worth it for a good one. Remember you get what you pay for as well when you’re shopping around for the cheapest. Just like your pay, you think you’re worth every dollar and should be able to prove it, so can a good realtor.
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Old 10-14-2018, 09:10 PM   #19
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Quote:
Originally Posted by Sleepy View Post
How did you get past the sticker shock of realtor commissions?

Weíve had our house up FSBO for a couple of months now and the wife is really wanting to hire a realtor. I just refuse to. We have no reason to move other than the fact we are looking for acreage. Therefore, my motivation isnít extremely high. (I want acreage, but not for the price of Realtor commissions).

You just chalk it up and say alright, Iíll pay it, or did you just stick it out and wait for a FSBO transaction to come along?


Disclaimer: I know realtors have to make money too. Iím just opting out at the moment.
A lady I know was going FSBO and had it in the market for about 5 months. Spoke to her, offering my services and went over everything out brokerage offers and what we do for the client. Listed with us, contract in less than 5-days, several offers. I explained to her she was leaving money on the table, she listened and we listed it for more than she was originally asking, and contract was a little over the listing price.

Kind of like hiring a hunting guide for the trip if a lifetime. You can read up on the area, do a little scouting (maybe) and do bbn it by yourself, or hire Bubba's Guide Service who has 100% success rate on P&Y Bulls.

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Old 10-14-2018, 09:11 PM   #20
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Originally Posted by RingSteel View Post
I thought realtor fees were negotiable when you list the property. Some realtors will list it for a lower percentage.
They will.

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Old 10-14-2018, 09:12 PM   #21
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Hypothetically you could pay your realtor cash after the transaction to save some what they charge you.....hypothetically only of course
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Old 10-14-2018, 09:14 PM   #22
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Originally Posted by BertramBass View Post
He can pay the fee or overprice the house. His choice.

Hard to say what a rising market can support.
It is hard to say. We listed one over the summer, nothing to brag about on the small house, but it was on a lake. We marketed it, had over 70 offers and the client went with an offer that was over 20k of asking price.

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Old 10-14-2018, 09:14 PM   #23
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Quote:
Originally Posted by DFWPI View Post
A lady I know was going FSBO and had it in the market for about 5 months. Spoke to her, offering my services and went over everything out brokerage offers and what we do for the client. Listed with us, contract in less than 5-days, several offers. I explained to her she was leaving money on the table, she listened and we listed it for more than she was originally asking, and contract was a little over the listing price.

Kind of like hiring a hunting guide for the trip if a lifetime. You can read up on the area, do a little scouting (maybe) and do bbn it by yourself, or hire Bubba's Guide Service who has 100% success rate on P&Y Bulls.

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Mind listing what your brokerage offers and what you do for a client for 3% list price?

Free sales plug for ya...
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Old 10-14-2018, 09:14 PM   #24
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We made a deal with our listing realtor for no sell commission for the full commission on our new house.
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Old 10-14-2018, 09:14 PM   #25
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Hypothetically you could pay your realtor cash after the transaction to save some what they charge you.....hypothetically only of course
And illegally lol
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Old 10-14-2018, 09:14 PM   #26
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Hypothetically you could pay your realtor cash after the transaction to save some what they charge you.....hypothetically only of course
Yeah, no. I want to keep my license

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Old 10-14-2018, 09:19 PM   #27
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We would not be in this house if we did not hire a bulldog of a realtor. 5 months 3 contracts and finally I called the seller only to find her realtor was not showing her our bids.............
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Old 10-14-2018, 09:24 PM   #28
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We are about to put our house up for sale and I have zero problems hiring a real estate agent. We are using the same agent that we used almost 3 years ago to sell our old house. Our old house was on the market for 36 hours and sold for 10% over our asking price so the agent paid for themselves and then some.
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Old 10-14-2018, 09:27 PM   #29
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Funny thing to me is realtors make 6% split between buyers and sellers agent plus two brokers getting a small cut of that plus expenses. Not sure of too many business that operate on 3% margins
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Old 10-14-2018, 09:29 PM   #30
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Sold my last 3 without a realtor and in a timely manner. Itís fairly easy in a decent market to list it all over online and social media.


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Old 10-14-2018, 09:30 PM   #31
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What gets me is the standard 6%, a realtor does nothing extra if your house is selling for 200k or 500k but gets lot more commission. It's still the same paperwork same marketing nothing different. My first wife was a realator so i do have some experience. I don't mind paying for services but why should i pay 30k in commission for not having to do anything special for it.
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Old 10-14-2018, 09:33 PM   #32
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I just listed and sold my house and negotiated with the listing realtor down to 1%. So I ended up paying 4% total... saves me over 9k


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Old 10-14-2018, 09:44 PM   #33
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Quote:
Originally Posted by BertramBass View Post
Add the 6% fee to the price of the house.
Quote:
Originally Posted by Antlers86 View Post
Exactly!
That's not how it works...
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Old 10-14-2018, 09:45 PM   #34
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If you have lived in your house any length of time it has appreciated substantially. 6% now days is a whole lot easier to pay than in the lean years.
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Old 10-14-2018, 09:48 PM   #35
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That's not how it works...
That's how I price my houses.

You can you do it your way...
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Old 10-14-2018, 09:49 PM   #36
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Edit: Staying out of it, I hate the realtor bashing threads.
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Old 10-14-2018, 09:58 PM   #37
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Why don't the whiners just become realtors since it's such easy $$$$ & get their Lic?? It's free, easy to pass, no annual dues, free health ins, Matching 401K & all other sorts of goodies!! Can't believe there aren't more TBH realtor supporting members!!

Hate these ignorant go get the pitchfork realtor threads.
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Old 10-14-2018, 10:01 PM   #38
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My wife was a realtor for years and even she would agree it was easy money!!! Not bashing realtors but with social media now itís way easier to do the same thing they are capable of. Now we have sold our last two houses ourselves with her experience and saved a boatload of cash.


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Old 10-14-2018, 10:06 PM   #39
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I don’t care what industry we are talking about here. You can either DIY or hire a professional. If you think you can do it as good as the one who spends 40-60 hours a week doing it, knock yourself out. I pick n choose my DIY projects. Some I’ve handled, and some I needed a professional to bail me out. Usually because they know the things I don’t know. That’s why they are the pros. Your not paying for their time. Your paying for their knowledge.
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Old 10-14-2018, 10:09 PM   #40
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I have bought a couple properties and sold one. I used realtors each time but cant honestly tell you what they did other than:
1. List the property
2. Let us in a house
3. Set up the title company

Most of my friends search Zillow/Realtor/whatever on their own and show houses to the Realtor that they want to see. This aint the old days of a published list that looked like a newspaper.

Also the 6% rule is nuts...its almost like the 3 months salary for an engagement ring theory.
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Old 10-14-2018, 10:09 PM   #41
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Quote:
Originally Posted by trophy8 View Post
Remember you get what you pay for as well when youíre shopping around for the cheapest.
But with a realtor, you really don't. That's the problem. Chitty realtors cost 3%. Incredible realtors cost 3%.

You usually find out which one you had in hindsight.
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Old 10-14-2018, 10:11 PM   #42
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But with a realtor, you really don't. That's the problem. Chitty realtors cost 3%. Incredible realtors cost 3%.

You usually find out which one you had in hindsight.
Homework. Referrals. Ask questions. Lots of them.
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Old 10-14-2018, 10:12 PM   #43
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Originally Posted by Artos View Post
Why don't the whiners just become realtors since it's such easy $$$$ & get their Lic?? It's free, easy to pass, no annual dues, free health ins, Matching 401K & all other sorts of goodies!! Can't believe there aren't more TBH realtor supporting members!!

Hate these ignorant go get the pitchfork realtor threads.
LOL Who's the whiner???


Don't like the thread, don't open it and post. Simple. Just like I don't open the high fence or Christianity threads...
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Old 10-14-2018, 10:15 PM   #44
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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 $$?
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Old 10-14-2018, 10:21 PM   #45
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Originally Posted by deerplanter View Post
What gets me is the standard 6%, a realtor does nothing extra if your house is selling for 200k or 500k but gets lot more commission. It's still the same paperwork same marketing nothing different. My first wife was a realator so i do have some experience. I don't mind paying for services but why should i pay 30k in commission for not having to do anything special for it.


There is no ďstandardĒ in real estate commissions. It is all negotiable. However, like some mentioned above, you get what you pay for. A realtor that will agree to a greatly reduced percentage on a small overall price is probably inexperienced and may actually cost you money during the transaction. Always look for someone who has completed recent deals in the area, deals with the type of product you are selling, buying, leasing etc, and that can add value to Home or property through improvement suggestions, marketing, or other creative ways. Itís not all about throwing something online either...you want someone that can provide the data for comps to the appraiser, navigate request for price reductions, and bad inspections to name a few. Plus...when you really know how to use a realtor to handle things you can blame bad experiences on them and come out smelling like roses at the closing table.


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Old 10-14-2018, 10:27 PM   #46
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Quote:
Originally Posted by Artos View Post
Why don't the whiners just become realtors since it's such easy $$$$ & get their Lic?? It's free, easy to pass, no annual dues, free health ins, Matching 401K & all other sorts of goodies!! Can't believe there aren't more TBH realtor supporting members!!

Hate these ignorant go get the pitchfork realtor threads.


Hate these ignorant over reacting posters that take what people are asking and make it into something extreme...


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Old 10-14-2018, 10:35 PM   #47
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Quote:
Originally Posted by Chance Love View Post
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 $$?


Absolutely! Chance nailed it!


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Old 10-14-2018, 10:38 PM   #48
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How many calls have you had? Tours?

How many buyers shop FSBO?

How many buyers know what FSBO is?

Don't assume buyers aren't lazy. Life is hectic.

How many clicks does your FSBO site get versus MLS?

How many active buyers do brokers have that they are intentionally not showing your house?

How much did it cost to professionally picture your house? You didn't do it id guess.

At the end of the day I believe you do not want to sell your house.

You are making the number one mistake- "the highest price buyer will find me" ...... hardly ever happens that way.

You'll likely sell it below market pricing if you FSBO.

Yes I am a broker but I don't sell houses. 99% of the time (in my experience) listing or at least using a broker has resulted in a price higher than what people wanted and more than covered the commission.

Why don't you call all the brokers in town and see who has a buyer. You'd save 3%

Last edited by ballgame; 10-14-2018 at 10:42 PM.
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Old 10-14-2018, 10:38 PM   #49
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Hard to understand something when your paycheck depends on your not understanding it.
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Old 10-14-2018, 10:43 PM   #50
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Same old gripe. No one ever wants to pay fees. Then in their own career field they want the most pay. Smh. It is what it is.
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