What ? I have seen many houses without signing any paperwork with a realtor. I just called the realtor that had the listing and they met me and showed it.
The sellers agent should be doing that it’s their job as the agent for the seller. There shouldn’t be a need for a buyers agent, it’s ridiculous that I would need one. Why would a buyer need to pay a commission to buy something- it is always the seller that does. I always thought it was a complete scam that if I want to rent a house, apt etc and I have to pay the realtor the commission not the landlord who hired the realtor.
On the rental side of things, because of their technology and alleged collusion with/between landlords, RealPage is the subject of a federal antitrust lawsuit filed yesterday. Not sure if a Zillow type proptech firm coordinating with local brokers in the home sales arena would be able to avoid a similar fate.
apnews.com
I envision the local broker simply acting as a liaison meaning they give the buyer access to the house, answer questions, and provide info = all of which the broker would get paid for doing but nowhere close to a traditional commission. Which, quite honestly, is probably about the limits of many broker’s skills. No offense to any brokers here, but I never understood how just about anyone, and I mean anyone, can be a real estate agent and yet they are handling what in most instances is the single greatest transaction that a person enters into during their lifetime.On the rental side of things, because of their technology and alleged collusion with/between landlords, RealPage is the subject of a federal antitrust lawsuit filed yesterday. Not sure if a Zillow type proptech firm coordinating with local brokers in the home sales arena would be able to avoid a similar fate.
Justice Department accuses RealPage of a scheme to help landlords hike rents in antitrust lawsuit
The Justice Department has filed an antitrust lawsuit against real estate software company RealPage, accusing it of an illegal scheme that allows landlords to coordinate to hike rental prices.
This law went into effect August 1st of this year.
I am sure they are out there, but a lot of good realtors do more than just open a door, you realize that I hope? Frankly, my biggest complaint is the attorneys in the deals. They foul up and slow down transactions a lot. I actually have started making a banned list, if a certain client is using that attorney I advise my client to take another offer.
Yeah, some attorneys feel they have to prove their worth. We always told our attorneys in closing to move things along and not be difficult.
When I am working with a buyer or seller I really prefer they use mine for a few reasons. The first is they only do real estate law. I hate when someone has an attorney and the deal gets delayed because that attorney is in court dealing with criminal matters. Or some clients use a free legal service attorney through their company. Holy crap just shoot me if you're going to do that. Free does not equal good. The second is I at least have someone I know so I can stay in constant contact with them about how the deal is progressing. NYC attorneys don't copy anyone on anything. I just ripped one via email last week during a closing. ZFG. I think she was taken aback but didn't care.
It's not my job as the sellers agent to be there for a buyers home inspection. How does that make any sense? I am representing the seller not the buyer. Same with any other inspection depending on the terms of the contract.
Because 90% of them don't actually do a transaction. You can get your license too and you likely won't make it. That's what people don't understand. Like any sales job the good ones make a lot of money and the bad ones don't do anything.
Our two closings in Arizona with no attorneys were paradise.
I know there are great realtors and when it comes to commercial properties, MF, etc. the brokers play a critical role in finding properties and vetting issues. My problem is so many SFH transactions these days don’t really need an agent and the commission did not adjust over time to reflect technology that makes the entire process easier. Agents simply spend less time today thanks to online listings, email, docusign, satellite imaging and maps, etc.
Market is ripping. Neighbor down the road just sold via FSBO and set the new high price of the development.
How would you feel if the next time you went to a car dealership to buy a car, the salesmen said, you want to take a test drive? Go hire an agent to take you on one. It’s the same concept, I shouldn’t need to hire someone to buy something.
You can make that argument for every industry lol people do less and less at work thanks to technology.
Buying a car does not require an inspection, a town inspection, a 6 figure loan, title insurance, attorneys...that is a terrible argument.
I hear what you are saying and you deserve to make a living for sure…but when we are talking about a 5% commission in NJ where the median home price is probably close to $600K and in North Jersey likely closer to $800K+ does managing buyer/seller nonsense equate to a $30K-$50K commission? I personally don’t think so and perhaps those deals should just die and let unreasonable people learn a lesson. And I’ll say this - when I bought my first house before today’s technology existed I did rely on my agent for everything including finding and showing me God knows how many homes every week and she knew all the ins and outs of neighborhoods and schools = I drove her nuts and she earned every penny of that commission. But times have changed. All of that info is available to anyone and I lean heavily on Google Maps and street views.
Buying a car absolutely requires a state inspection, manufacturer pre delivery inspection (PDI), insurance, title, loans that must meet certain LTV ratios which work extremely similar to home loan appraisals, a notary. It’s actually an extremely comparable argument.
Correct but I don’t need to hire my own agent to buy a car. The cost of the commission is built into the price. I am not saying that an agent is not needed to sell a home, I just don’t know why I would need one to buy a home.
Aside from the attorney all of those things happen (on some scale) with a lot of big ticket purchases.
Great. You still need an agent to negotiate on your behalf and navigate all the stuff that comes up. There are many bad ones but the good ones are very good and that’s why they make big bucks
GTFO here....do you have any idea how much work we do for clients that we NEVER see $1 off? 1% my ass lol!!!
Okay...THIS I agree with....and is what you're going to see more of moving forward. The seller offering 2-3% to the listing agent, 0 - 1% to the buyer's agent, and the buyer's agent getting 1-3% from his client I have no issue here it's just a PITA right now.
Regardless of the percentage, payment should be capped at $10k for realtors. That's more than fair for the service.
WHY? How does this affect you and your life? I don't get a salary. I pay ALL my own expenses. Literally We live in a capitalistic society, the last I checked, so why should we have "capped" commissions as such? Does your Financial Advisor have "capped" commissions? Should servers and bartenders have 'capped" tips?
Yes, in fact there are advisors and investment firms that cap commissions for the very reason we are talking about = 5% of a $5M investment sale and 5% of a $100M investment sale for the same product doesn’t make sense especially when it involves the same work. Just like the $500K v. $1M home scenario discussed. If the NAR and big brokers of the world didn’t lobby so hard over the years to keep the commissions status quo, technology and common sense would have addressed this problem. In your run of the mill deal, brokers do less work now than they did 20 years ago to service clients and close deals. No more hand delivering paperwork to houses. No more marathon showings. I remember the days of seeing 20 houses in a weekend with my broker. They grinded for sure. Now thanks to the Google Maps and info online I can easily rule out 50%+ of listings that years ago I would have made an agent show me.
There are - YES - but they CHOOSE to do so. I have NO problem at all with that. None.
At some point the traditional real estate agent model will get completely upended. This is just the beginning. It’s either going to a negotiated flat fee or a menu of services. Could be 5 years from now. Could be 50. But there is no way we’ll all be riding around in self-driving cars one day yet still pay 5% commissions.
You keep acting like you just walk through a door and the house is yours. Are you forgetting all the crap we have to deal with once you think you want the home?
Let’s say Skoolie is a real estate agent . Say schiano gets hired to be the Dolphins HC so he wants to sell his jersey house and make to Florida . Say skoolie may know schiano and gets the listing to sell schiano’s house.
Except I have a fiduciary duty to my seller and need to present all offers or I could get in trouble. I have actually in the past when I am a dual agent, have told my clients to take the other offers even if I am going to make more money. I know you won't believe that, but thats what I do...and sometimes the better offer backs out and then I get to represent both. Representing the seller I want them to make as much money as possible with as little headache as possible. If someone wants something different than that please let me know.
There just isn’t that much crap to deal with anymore to warrant a 4-5% commission at least in comparison to 20 years ago. Sure, there are probably nightmare deals. But what are we talking about here once someone wants the home? Figuring out comps? Writing up an offer on a form? Competing offers? Coordinating Dates, inspections, etc.? Bickering over repairs and concessions? No doubt You deserve to get paid for all of this. Even if you spent 20 hours doing all that (which I doubt) at $500 p/hr it’s only $10K.
