Many agents are not taught to be creative when it comes do deals and commissions. If you do decide to buy and sell with a real estate agent, look for ones that are well educated investors or work with investors as well. Real Estate Investors, generally, work more creatively and sometimes they even teach the agent how to do things in ways they never considered.

That being said.....many Real Estate Agents do provide a genuine service for the public and sometimes the public doesn't realize the "behind the scene" expenses incurred by these agents. These agents work tremendously hard for their clients and should get paid for their service. A great Real Estate Agent is worth their weight in gold!

Have you thought about buying or selling your properties without an agent? There are many ways to sell/buy a property (ie...Lease Option, Lease Purchase, Taking over payments for the seller subject to the existing mortgage, etc) that don't involve agents and their commissions. As long as you do some quality research and you can find a knowledgable attorney to make sure the contracts are a win~win for both parties, you can purchase and sell properties w/o an agent and save some $$$.

Bob Bruss was a great man and Real Estate columnist who wrote tremendous articles for the public. You may want to "google" his name and articles. You'll learn quite a bit that will serve you well in the future.

Hopefully this helps you out a little bit.

Alicia, good luck finding an agent who will do 2 for the price of one. I know I wouldn't stand in line to give up my salary so that you can move to a larger home in a desirable school district. If you gave up half your salary, you couldn't, could you? Well, I'd like to move to a larger home in a more desirable school district, also, and I can't do that if I give away the money that I use to put a roof over my familys' head and feed them, can I?

Nicholas, although there are other occupations that have to pay fees and have business expenses, many people do not realize that realtors pay all these fees and do not get paid unless the sell a home. You would be surprised to learn how many people think we get a salary, and we don’t have to pay for advertising. Heck, I’ve had people who were surprised I pay TAXES! That’s right! “Can’t you get paid in cash? What’s a 1099?”


Our fees are not the same as tuition, and tuition ENDS. Speaking of rubbing the wrong way… where do you come off saying “When you try and sell us on the disadvantaged RE agent that didn't spend 4 years in college and thousands of dollars upfront to get the priveledge to be a social servant you make a mockery of those self-sacrificing individuals.” Many realtors spent 4 years or MORE in college. Or are you one of the realtor bashers who think we’re all dropouts that have GEDS. Many are retired teachers who are collecting $80,000 a year pensions in addition to working as realtors, so don’t get me started on our “public servants”. A teacher in my area makes as much or MORE than $100,000 a year for working 180 days a year and then gets an 80% pension. So in addition to my own realtor fees I am paying for pensions and benefits for many retired teachers.

You say: “There have been studies that show that RE agents get more for their own houses they they do for other people's homes. The reason is clear, there is an incentive for them to do a good job. The same studies have shown that homes listed by a Realtor don't sell for more then those listed FSBO. The only benefit that RE agents bring to a sale is that it is on average 2 months faster then FSBO, quite possibly the reason why they get less for your house then they do their own.”

The reason RE agents get more for their own homes might also be because the price them right the first time, ya think? Maybe that’s also why they sell 2 months faster than a FSBO. I’m surprised the figure isn’t 2 YEARS faster.

This is from the Maryland Department of Housing and Community Development.

http://www.mdhousing.org/Website/home/Document/Property%20Fo…

The last page of this report has an interesting chart that shows forclosures in the 2Q 2008 hotspots.

"From our company monthly expenses and or marketing material and advertising, or the gas in driving to show you homes, . Most careers don't require the employees to pay a fee every month to work for them unlike Real Estate that does"

"Now is the time to pay for the experience you desire, rather than expect a job for free."

These types of answers just rub me the wrong way, I almost feel compelled to answer them. I just don't understand why Real Estate agents think that they are the only ones that have to pay for the privledge to work. They cite brokers fees, gasoline, MLS fees, desk fees, and a ton of other things that go into their job and somehow use that as an excuse why their services should cost double what they did 3-5 years ago. I even had one try to justify her income with day care and taxes.

News flash, everyone pays taxes. Most everyone has to contend with taking care of children.

Interestingly, the average college student spends lots of money on classes and books and doesn't get paid for 4 years. They have tons of unpaid time spent serving before they begin to bring their "career".

As an example take teachers. At best a teacher will come out of school making 45,000$ a year and they often buy out-of-pocket for class activities. They pay taxes, association fees, and travel to and from work. They often have to work nights and weekends grading papers. They participate in bake sales or other fund-raising events just so their kids can go to the zoo or other special event.

When you try and sell us on the disadvantaged RE agent that didn't spend 4 years in college and thousands of dollars upfront to get the privledge to be a social servant you make a mockery of those self-sacrificing individuals.

There have been studies that show that RE agents get more for their own houses they they do for other people's homes. The reason is clear, there is an incentive for them to do a good job. The same studies have shown that homes listed by a Realtor don't sell for more then those listed FSBO. The only benefit that RE agents bring to a sale is that it is on average 2 months faster then FSBO, quite possibly the reason why they get less for your house then they do their own.

http://faculty.wcas.northwestern.edu/~ane686/research/fsbo.pdf

Alicia don't let a handful of RE agents distort what you know in your heart. If you want help selling your home feel free to negotiate commissions as well as payout criteria. Remember though, you are in a Buyer's market so the "offer" for an Agent to sell your home is not as attractive as you think, that is unless you have an amazing home and are offering it for a discount to the comps.

Sellers agents often share their commission with a buyer's agent and if you are not offering commission on the sale then often the buyer agent will not continue to represent the buyer. The buyer, without representation, with either have to pay out of pocket for his agent or will find another house. If the buyer continues without representation, your agent, will likely have to double up on paperwork to complete the sale. All this happens with just a handshake that you will use that agent to buy your next house.

This all leaves your agent in a nebulous position without recourse on many fronts. Almost always a lose-lose if things go bad.

I would suggest that you sit down as a family and make determination on how much seller and buyer agent services are worth to you. Say you have a home worth 200,000$ and you determine that you would pay someone 4,000$ to sell your home. You also are going to buy a home and would seek an agents representation and would pay 4,000$ to buy another 200,000$ home. Then go out and meet a few RE agents and discuss with them their fee structures and propose what your willling to pay.

Make sure the Buyer agent that you enlist has an agreement to only be paid by you and to receive nothing from the seller so that he doesn't double-dip on the sale. Buyer-only agencies are out there if you look for them.

Michael, I could not have said it better. PG County has taken the largest hit in Maryland with Foreclosed Homes. I feel for the agents working in that market.

Alicia, everything is negotiable. Best thing to do is interview 3+ Agents who specialize in the area you are looking. The one you trust and have the most confidence in, may be charging more than the others... and you might not care. It's tough to make that call now before the interviews. The interviews will give you perspective. Most important, find a FULL TIME Agent with at least 5 years experience who works AND lives in the area you are looking.

Every transaction is a value proposition and every agent has market value based upon qualifications, experience, marketing strategy, counseling ability and a host of other factors. No client of mine has ever felt that the value my services provided were less than the commission earned. If you are making more money than my commission on both transactions why would you want to deny me the value of my services? This is precisely the market where you need the highest quality agent and not the cheapest agent.

I never said FREE!!! I said if you do both sides some agents will discount on one side to get the other. I guess in Texas we are people friendly. NO one works for free nor is expected to work for FREE! That why it is a business!!

In the full context of my note I stated the fees we must pay and that she should not expect it for free; however, a small discount for an agent who needs work is not a bad thing for her or them. Especially in the market we are in now. I rarely discount but have and will again especially if I get two deals and the home is a saleable home which I also mentioned in my note.
In my area builders tell buyers to call us and ask for a listing discount and we get the full commission on the sale. My last deal of that quality put $15,000 in my pocket. I will gladly take that and smile!!

Thanks for disagreeing with Tina, Keith. I already sent her a private e-mail...........her answer was insulting to all of us.

Alicia
I beg to differ with Alicia. I can see why you'd give her Best Answer. The truth is that SOME agents might, but I'll bet if you interview top Realtors you will understand that there are very good reasons why in most cases you will be paying for services rendered on both side.

There are two primary considerations that you might want to think about:
If I were to ask you to take 50% of your monthly paycheck and give it to me, who would you react? Most Realtors pay one third of their commission to their broker, one third in taxes and expenses, and live on one third.

So if you want a Realtor that will negotiate and work hard for you, would it make sense to remove their incentive. To put it another way, most Realtors works very hard, long hours, to protect their client's interest. If you were to create a situation where you are offering to pay them half what they would normally make, you might find your self without the best Realtor, because they could make more money doing the same work for someone else.

Which leaves you with the question, if I am able to talk a Realtor into working for half price, what I am getting for the money? If that Realtor is willing to give up have their income, what happens when they run into a tough negotiator on the other end?

I think you will find that most top Realtors can PROVE to their clients that they SAVE them money in each transaction. Interview three agents, then you run the numbers and you make the call.

In most areas of the country, you pay a commission to your listing broker on the house that you are selling. The commission on the house that you purchase will likely be paid by the seller of that home. Like you, some some sellers wish to save the commission on the sale of their house. It is called FSBO (For Sale By Owner). You do it yourself and don't pay an agent to market the house or help you negotiate a sale. When the market was moving quickly, and with lots of pent up buyer demand, it seemed like an easy thing to do. With today's market conditions you will probably want to hire the best agent you can find. Bear in mind the old adage, "You get what you pay for".

Hi Alicia,
I don't think you should ever expect to get a job done for free (any job) and I will give you the benefit that you don't realize that is what you just asked someone to do. Selling a home is a job and representing a buyer is a job, so in essence you want two jobs done for the price of one. I doubt you will find an agent who will do that and if you do find an agent to do that, I would ask what their motivation would be to work for free and what kind of job do you think you would get for free? Selling a home is a full time job and it requires more than the sign in the yard and the mls listing (both will cost the agent out of their pocket). Many people don't realize what goes into being successful in the real estate industry and because there are many good agents who make the job look easy people tend to de-value it. Over the past few years some sellers have been able to sell without a realtor. That was not great skill, it was more just good luck in a good market. The market is not so great right now, and listings are staying on the market longer, requiring more money to market them and more experience to hold the deals together and work thru the problems that will arise. Now is the time to pay for the experience you desire, rather than expect a job for free. If moving is really your desire, and in my opinion it is a great time to be a buyer, you could do a for sale by owner and hire a buyers agent after you have your house under contract. You may ask a realtor to negotiate with you on commission but free is unrealstic!
Kim

Are you kidding me? How about you go to work next month for the whole month, but only get paid for 2 weeks of work and see how you like it? UNBELIEVABLE! TRULY UNBELIEVABLE! GOD HELP YOUR AGENT (But I have no doubt that some poor soul will sign their life away to work with you)!

Denise,

Thanks!! Couldn't have said it better.

Ted Stewart, CRS, e-PRO
Yerman Witman Gaines & Conklin Realty

Most agents will give you a reduced commission on the sales side for doing both sides of the transaction. It is not something we like to do; however, depending on your current home and how saleable it is some agents will make a deal with you. Please understand as agents we spend money on each transaction. From our company monthly expenses and or marketing material and advertising, or the gas in driving to show you homes, . Most careers don't require the employees to pay a fee every month to work for them unlike Real Estate that does.
Go to RE/MAX.com and look through the directory find agents you would like to work with and call them. Tell them your request and see if they want to work with you on your terms. You will find someone to do it for a reduced commission; however, probably not free! Best of Luck!

I don't know Alicia........would you show up at work every day, and sign a contract stating that you will work for free? I don't think so..........so why should a Realtor work for free? Unreal..............