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    #76
    Originally posted by Austin View Post
    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
    To be clear, I'm not bashing realtors. The 3% is not margin, it's sales revenue. The simplified margin for each deal would be profit/sales revenue. Profit is revenue minus costs. The actual margin may be more or less.

    I think where people get upset with realtor fees is they don't understand the cost side and therefore assume most of the fee is profit. For lazy realtors this is possibly true, but I'm also willing to bet the lazy realtors don't facilitate many deals. Long story short, my belief is good hard working realtors are worth their fee, crappy lazy realtors are an unnecessary expense.

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      #77
      Originally posted by Throwin' Darts View Post
      This is idiotic. I had a realtor tell me this once and I just laughed and told them they wouldn't be getting the listing. The home should sell at the highest price the market will pay. Period.
      So you have a house with market value of $250k and that is what you want for it. Agent comes in and they tell you they would put the listing at $270k so you end up with the amount you expected to get after fees etc etc. They actually sell the house for that and you come out with $250k in your pocket. Yeah that is so idiotic.

      No different than retail consignment. I supply chandeliers for local business. Tell them what I want and they raise the price of the item to whatever they think it's value plus their time dealing with it. Some sell fast some sit for months. I sit back and get paid not once having to deal with a customer, advertising, or anything. I don't care if they raise the price 100%. I'm happy to get what I need/expect out of the item.

      Comment


        #78
        Originally posted by ecallarman View Post
        Looking at it from a business perspective, why wouldn't you add the 6% cost to the price? You don't think that all businesses don't have the cost of sales and marketing factored into their product's price? They do. No different in this situation.
        You own a home (or anything). You probably should try to sell it for what it's worth since it's your money.

        If the house will sell for 200k then you sell it for 200k. You can't just add 6% and someone will magically pay 212k for it.

        And if someone does pay 212k for the house that 12k is still YOUR money from YOUR investment that you risked in the housing market.

        Comment


          #79
          Originally posted by Antlers86 View Post
          So you have a house with market value of $250k and that is what you want for it. Agent comes in and they tell you they would put the listing at $270k so you end up with the amount you expected to get after fees etc etc. They actually sell the house for that and you come out with $250k in your pocket. Yeah that is so idiotic.

          No different than retail consignment. I supply chandeliers for local business. Tell them what I want and they raise the price of the item to whatever they think it's value plus their time dealing with it. Some sell fast some sit for months. I sit back and get paid not once having to deal with a customer, advertising, or anything. I don't care if they raise the price 100%. I'm happy to get what I need/expect out of the item.
          In that case the idiot is the one wanting 250k for a house worth 270k

          To be clear I'm 50/50 on the realtor worth it or not debate. I know they are worth it when the sale is complicated or for a niche market to find the right buyer. But for an average home I think anyone should be able to list their home on the MLS system and then a realtor wouldn't be a lot of help. But since one can't list on the MLS they probably need a realtor. And if you get one you better get a good one.

          Comment


            #80
            I have seen advertising for a flat fee listing agent.

            I believe market should be taken into consideration. My last house sold in 24 hours. I really didnt need the realtor in this area, at that time.

            Have a good friend at work who tried selling his house without a realtor, and it didnt work. He lived in a completely different area. Hired a realtor and it was sold in 2 1/2 weeks.

            A good realtor is worth their weight, but also know the market you are in, and you will see trends easily that will help you make your decision.
            Last edited by jer_james; 10-15-2018, 08:53 AM.

            Comment


              #81
              Originally posted by Antlers86 View Post
              So you have a house with market value of $250k and that is what you want for it. Agent comes in and they tell you they would put the listing at $270k so you end up with the amount you expected to get after fees etc etc. They actually sell the house for that and you come out with $250k in your pocket. Yeah that is so idiotic.

              No different than retail consignment. I supply chandeliers for local business. Tell them what I want and they raise the price of the item to whatever they think it's value plus their time dealing with it. Some sell fast some sit for months. I sit back and get paid not once having to deal with a customer, advertising, or anything. I don't care if they raise the price 100%. I'm happy to get what I need/expect out of the item.
              Man on man, you must have slept through Econ 101.

              If the market value of the house is $250k then the market will bear a price of $250k. If the market will pay a price of $270k then the market value of the house is $270k, not $250k, and it should be sold for $270k. What happens at closing in regards to fees and who gets what has no bearing on the market value of the house.

              An asset should be sold for the maximum price the market will bear. If the market will pay a price of $270k for the home that's the price it should sell for with or without a realtor fee, title fee, or any other fee you can dream of.

              Same goes for your chandeliers. If the market will bear the price that that the consignment shop is charging then the consignment shop's price is the market price.

              You're confusing market value with seller complacency in regards to price.

              Comment


                #82
                Originally posted by Antlers86 View Post
                So you have a house with market value of $250k and that is what you want for it. Agent comes in and they tell you they would put the listing at $270k so you end up with the amount you expected to get after fees etc etc. They actually sell the house for that and you come out with $250k in your pocket. Yeah that is so idiotic.

                No different than retail consignment. I supply chandeliers for local business. Tell them what I want and they raise the price of the item to whatever they think it's value plus their time dealing with it. Some sell fast some sit for months. I sit back and get paid not once having to deal with a customer, advertising, or anything. I don't care if they raise the price 100%. I'm happy to get what I need/expect out of the item.
                Well, it sounds like the market value was actually 270k. What if the market value is 250k and you were sitting there unable to sell at 250k in a competitive market. Would you be willing to list at 250k and pay commis?

                Comment


                  #83
                  Throwin' Darts is making a very valid point, most of the time it's not as easy as simply adding 6% to what the seller want's for the house. Most of the time, sellers want more than the property is worth. You hire a Realtor to make as much as the market will bare at that given time in history.

                  Comment


                    #84
                    Originally posted by Throwin' Darts View Post
                    Man on man, you must have slept through Econ 101.

                    If the market value of the house is $250k then the market will bear a price of $250k. If the market will pay a price of $270k then the market value of the house is $270k, not $250k, and it should be sold for $270k. What happens at closing in regards to fees and who gets what has no bearing on the market value of the house.

                    An asset should be sold for the maximum price the market will bear. If the market will pay a price of $270k for the home that's the price it should sell for with or without a realtor fee, title fee, or any other fee you can dream of.

                    Same goes for your chandeliers. If the market will bear the price that that the consignment shop is charging then the consignment shop's price is the market price.

                    You're confusing market value with seller complacency in regards to price.
                    I can agree with what you have said but you are leaving out the motivations of the buyer and seller of any thing bought or sold.

                    Comment


                      #85
                      my wife is a residential realtor. She loves FSBO because a lot of the time she is able to list their homes and sell them after they were sitting on the market with no activity. This does not apply to everybody, but the vast majority of homeowners are not capable of marketing the property to the same level as a realtor. They also won't have access to the same comp data. Zillow and Trulia are so far off on their numbers its laughable.

                      not to mention, a experienced realtor helps to negotiate things such as option periods, after inspection repairs, etc. Finding a Buyer is only part of the transaction.

                      Its also a proven fact that properties listed by realtors bring a higher price than FSBO's.


                      A person who has sold 3 or 4 houses on there own is not an expert. A good realtor will sometimes do that in a week. A person who has FSBO'd a handful of property is not in the same league as an agent who does 50+ transactions a year. Not even close in terms of experience.


                      Real estate agents are like Attorneys. There are a lot of bad ones. But the good ones are worth their fee, every single time

                      Comment


                        #86
                        I have a working relationship with our realtor which helps, but the realtors on the other end become the problem or not because they work for a living as well.... There's no incentive unless they are getting atleast 3% of the sale to show your listing to their client.

                        Comment


                          #87
                          So the people who say a realtor sold their home in 24-48 hours..... Do you think you got fair market value? You would have to assume the realtor found the person willing to pay the most (out of a huge pool of buyers) in 24-48 hours. I would assume they left lots of money on the table.

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                            #88
                            so why is it standard for the seller to pay the 3% for the buyers agent? They haven't done near the work that the selling agent does?

                            Comment


                              #89
                              Originally posted by RiverRat1 View Post
                              So the people who say a realtor sold their home in 24-48 hours..... Do you think you got fair market value? You would have to assume the realtor found the person willing to pay the most (out of a huge pool of buyers) in 24-48 hours. I would assume they left lots of money on the table.
                              Everytime I've sold something this quick, it was typically a cash buyer and I had multiple offers on the table over asking price.

                              Comment


                                #90
                                Thoughts .... I've sold my last two houses by FSBO!

                                Used a company to list it on MLS with pics for $400!
                                Wouldn't provide a tour to anyone unless they had a letter from a bank with a loan approval for our selling price.
                                Patience is a must! Who can sell your house or property better than the person who owns it? ONLY YOU!
                                If you don't have the time and patience to deal with what you call as tire kickers ..... then hire a REALTOR!
                                Good Luck!

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