I would disagree that at this point in time realtors are willing to negotiate their commissions more than ever. Now more than ever, we are taking a bigger chance when we take alisting, that it isn't going to sell at all. No sale, no paycheck. Homes are on the market an average of 6 to 10 months. We take more of a risk that we will be blamed rather than the market place if it doesn't get enough showings. That is why we (speaking for myself at least) go to great lengths to get the word out that your house is for sale. We try to get as many agentsto see your home as possible. That takes a lot of money, footwork, and imagination. I see more an more agents who take listings at 3 or 4 percent have their listings expire. Agents like to be paid, too! When I take a buyer around, and there are, for example, 15 condos for sale in the same complex, which ones do I bring my customers too first? The ones I have been inside of, that I know I can sell because they look good and are priced competivly, or owners who are fishing for a high price and trying to pay as little as possible to the selling agent. I recently saw a house expire for the second time. The coop commission was 1%. That is less than a .5% commission for the selling agent. Steve and Joan, if you worked in a store that had identical items for sale, and you were paid more to sell a particular item, which one would you be more enthusiastic about selling?

Sat Apr 5 2008, 15:02

Its against the Realtor rules because they don't want you to know. They are embarrassed at how much they charge. Ask around. Make an offer. Realtors are more negotiable about what is essentially they salary / paycheck now than anytime in the last thousand years.

Sat Apr 5 2008, 14:36

As a full time Realtor I would ask you a few questions.
When you are trying to find a medical Professional, do you choose them by the fees they charge or do you research their expertise and professional background? When you have chosen a car mechanic have you found that the best deals may be your worst nightmare ? Well I would not choose an agent based on their brokerage fees but on the competence to get the job done. Anyone can throw a sign in the lawn and call themselves an agent. A true professional can save you thousands with their expertise and negotiating skills. Our business is all about our clients needs we not only work with buyers and sellers but we must maintain a high level of professionalism and skill to work with the agents on the other side of the transaction. I cant tell you how many times some discount agencies have lost deals on their clients behalf because of their lack of knowledge, skill and professionalism.
Don’t be penny wise and dollar foolish.

Enthusiastically,
Helene M Moore
702-275-2192

Sat Apr 5 2008, 11:49

One last note and then I am done with this post. What amazes me is how people will pay $5.00 for a cup of coffee at Starbucks, when they can get a cup at 7-11 for about a buck. But when it comes to buying or selling the biggest investment that most people will make in their lifetime, many want to put their trust in the cheap real estate agent. Evidently in many people’s minds the major priority here is a lousy cup of coffee, not the largest investment they have ever made. Is it just me or do the people in this nation seem to have their priorities out of whack?

Tue Feb 26 2008, 18:09

In a Nut Shell.... My son can go to the crappy Clark County public school for FREE. I choose for my son to attend a private school, and I pay $7,000 a year to ensure that he gets A QUILITY EDUCATION. Bottom line....You get what you pay for.

Tue Feb 26 2008, 17:57

Gary:
I can't imagine many people that will take a 50% pay cut and to do the same amount of work or furnish the same level of service.
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And yet, people expect realtors to do it. Good post, Gary.

Tue Feb 26 2008, 15:22

I think if you're looking for steep discounts you'll usually get what you pay for. I can't imagine many people that will take a 50% pay cut and to do the same amount of work or furnish the same level of service. On the other hand, if you're getting 50% of the work for 100% of the pay, then it's time to fire them, unless that's what you want.

Real estate is like any other profession. I've run into good and bad doctors, lawyers, and accountants. Same for plumbers and mechanics. Some that look good on paper with lots of credentials that offered lousy service. I've run into sharp rookies that ran circles around supposed pros. Bottom line is doing the job.

If you're a seller that really needs to move a property in a tough market and already priced right, better to kick up a buyers agent commission than just cutting the price. Adding a 1-2% bonus commission would attract more agents with buyers and I can't blame them. They've spent their money to find and qualify those customers I don't have, I'd rather spend mine to do the same. Have to go a lot more than that with price to attract any attention.

Tue Feb 26 2008, 14:58

Unfortunately this is not the time when you throw a sign on the lawn and have buyers lined up. It does take a lot of marketing effort and that is why I don't reduce my commission.

Tue Feb 26 2008, 14:24

Hello Again...
JR - my realtor didn't do it out of charity, thats what the market here dictates right now and he is not the only one doing that. Homes in Vegas are so out of control, that for a listing agent to try and make a sale, they have to do something to get the price in line with all the foreclosures.

A lot of agents are refusing to take listings too. Why, I would guess that it is because they know the amount of time and money that will need to go into selling a non REO house in Vegas and that will cut into their wallet unlike the boom when all they had to do was list and walk away 30 days later with a big chunk of change for very little work. A ton of people got a license in 2003 and 2004, now a lot of them are out of the business.

No I cannot claim to know everything a realtor does on an hourly basis. My wife was in the real estate industry as a loan closer for years both residential and commercial. She had a couple of really good agents who earned their money. More often than not, she had people like mentioned below who just got their license to cash in on the boom and had no clue. Those are the folks who gave you guys a bad rap.

Just like all the other industries you mentioned, there are those who do their jobs and do them well, and those that don't.

Tue Feb 26 2008, 10:10

Commision monies are earned,period. In my area, I work for a broker who always wants us to secure 6% commisions an all exclusive listings.We work extremely hard for our sellers. Most people have no idea how much time,effort and money it costs to market and sell your property in a timely manner.

Tue Feb 26 2008, 07:16

I know you think it funny how Realtors defend their pay.
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It's true, isn't it Ken? Some consumers seem very surprised that we expect to be paid. And everyone knows so much about our jobs, too, isn't that interesting? I have no idea whether it is hard or easy to be an IT person or a teacher or a sanitation worker. I don't do that job. But everyone knows EXACTLY what a real estate agent does on an hourly basis.

Tue Feb 26 2008, 07:08

J R...Yes it is true that there are not as many 4% or more commissions being offer NOW (there were a great deal more being offered when I originally posted my comments), but there were a GREAT deal of these co-ops being offered to the buyers agent up until recently. My point was this...MOST of the listings offering a 4.0% co-op to the buyer’s agent are doing this to make up for the fact that the property is priced too HIGH. There are agents out there that will only show listings that are paying a 4.0% co-op or higher, but agents that operate in this manner is what makes the general public view agents as crooks. Agents such as they are only looking out for their own interests, not their clients.
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I'd love to find out how those agents are forcing people to buy those overpriced houses. I don't care if the co-op is 20%, I don't even show an overpriced house. Mostly because I can't find buyers who even want to see them.

Tue Feb 26 2008, 07:05

My point though is this particular agent wanted to work with us to try and reduce our out of pocket because houses are too high in Vegas.
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That's admirable of him. There are people who do charity work and give out food in soup kitchen and that kind of thing. I teach literacy at the library and volunteer at a food pantry. But I have my job because I need to pay to have a roof over my head and eat, so I can't possibly discount my salary.

Tue Feb 26 2008, 07:02

Thanks to Ken and Goad Team for listening.

I am in a bind in Vegas like most. I bought in 2006 at the peak, put down 20%, have a credit rating of 780, and got a loan at 5.75%. 2 years later, the 72K I put down is GONE. Evaporated into thin air due to the mess created in Vegas. I was looking at relocating for a job and left the area. We listed our house with our agent we purchased from who worked with us on commisions. If another agent brough a buyer it was one rate, if he brought the buyer it was a lower rate, and if I found the buyer, even lower than that. This gave me incentive to get involved as well witht he marketing process.

Long story short, I can't sell the house right now because of the 25% drop out there. That is nearly an 80K loss so I am returning to Vegas.

My point though is this particular agent wanted to work with us to try and reduce our out of pocket because houses are too high in Vegas.

Its seems unfortunate, but all the statistics and such I have read on this site and other suggest that the market will remain down, then flat for a while in Vegas.

The problem is when in the 300,000 to 400,000K range like I am in, 3 to 6% is ALOT of money and sellers can't give all that up right now.. As City Center comes online, yes more jobs and more people, but withthe tightening lending practices, will I ever be able to sell my house without taking a loss? It will take YEARS for that to happen if it ever does.

Again, there are good realtors, no question, but during the boom, how many people got their licenses and how many of those are still active? I have heard it dropped significantly. Those who are left and still LISTING homes are the ones working hard because they know the challenge right now. Those who bailed are the ones that I speak of so negatively.

Incidentally, I would theorize that those agents who bailed when things went bad are also the ones driving up the prices with the shady lenders, builders, and appraisers who created this mess to begin with.

As a seller in a tough market, I need to save as much as possible and if I weren't out of town trying to sell, I would flat fee MLS and do the ground work to save anywhere from 3000 to 9000.

Thanks to all who heard my rants!

If anyone needs a house in Henderson, I have on for sale :)

Mon Feb 25 2008, 20:23

Hello Rob,

I appreciate your answer and professionalism as I buyer that has been forced to learn the trade due to agents not caring. I share similar views with you and hope more Buyers will engage agents into good dialog. Although I do not agree in this market that homes sell themselves and if you dont believe me, just ask all the sellers trying to get out of their homes in Vegas. Thanks again Rob, remember there are many of us who care and want to do a good job for clients such as yourself.

Mon Feb 25 2008, 20:03

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Ummm. Could that be because there aren't a whole lot of homes OFFERED with a coop over 4 %?

J R...Yes it is true that there are not as many 4% or more commissions being offer NOW (there were a great deal more being offered when I originally posted my comments), but there were a GREAT deal of these co-ops being offered to the buyers agent up until recently. My point was this...MOST of the listings offering a 4.0% co-op to the buyer’s agent are doing this to make up for the fact that the property is priced too HIGH. There are agents out there that will only show listings that are paying a 4.0% co-op or higher, but agents that operate in this manner is what makes the general public view agents as crooks. Agents such as they are only looking out for their own interests, not their clients. If you honestly believe that higher co-op's to the buyers agent is what will sell homes today’s market, instead of pricing the home correctly...tell that to the new home builders, as most of them WERE offering outrages commissions over the last year. But most have clued into the fact that the prices needed to come down, and that doing this is far more effective than offering a higher commission rate to the buyer’s agent. I am all for making more money, than the “standard” but NEVER when it means that my client is getting screwed in the process.

Rob Anderson - I know this is going to upset some of the agents out there, but I agree with you 100%. Many agents are not worth a hill of beans, much less thousands of dollars in commissions. I am primarily a listing agent and you would be shocked how many offers I get where the buyer’s agent cannot even fill out an offer correctly.

I have stated for many years that most agents spend way to much time in: sales classes learning how to convince someone to buy a home they do not want, going to motivational seminars, etc. etc. Instead of attending classes that will teach them more about Real Estate and how to do their job to the best of their ability.

There is a 2 fold problem here....#1 Most Real Estate agents do not know how to properly market real estate and/or do not have the funds to do it. Many also lack the knowledge of how to do their jobs. In Nevada you have to go to school longer to cut hair than to sell real estate, THIS IS A SAD BUT TRUE FACT. #2 Brokers are not educating their agents as much as they did in the past (there are a number of reasons for this, that I am going to go into). Most of the Continuing Education classes that we must take to renew our licenses go over the same stuff as pre-licensing classes and do not teach "next level" real estate education. Those agents that are serious about their careers seek out and attend classes that will further their career and teach them how to be true “professionals” but again most of the classes are basic "Real Estate 101" type classes.

The fact is that the real estate profession has damaged itself. Real Estate agents used to be viewed as professionals, but when agents are out in the field showing houses in Shorts and Flip-Flops, and the kid working the drive through window at your local McDonald’s has a real estate license, it is no wonder why the general public no longer has a great deal of respect for Real Estate Agents as a whole. However this does not mean that all agents are unprofessional and are not properly educated.

Mon Feb 25 2008, 19:57