The Ballen G…,  in Las Vegas, NV

What is the highest commision you would pay to a Realtor & why?

Asked by The Ballen Group, Las Vegas, NV Fri Aug 24, 2007

Please do not tell me how much commission particular companies charge as that is against our Realtor rules. Please DO tell me how much you would be willing to pay and why you think it would be worth that amount. If you have recently used a Realtor and paid a commission, was it worth the commission? This is not a Bash Realtors session, but I would like to hear honest, positive answers, opinions, and experiences. Thanks!

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Answers

35
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.
Web Reference: http://www.c21infinity.com
5 votes Thank Flag Link Mon Feb 25, 2008
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?
Web Reference: http://www.GoadTeam.com
3 votes Thank Flag Link Tue Feb 26, 2008
~~~~~~~~~~~~~~
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.
Web Reference: http://www.GoadTeam.com
3 votes Thank Flag Link Mon Feb 25, 2008
Hey Rob,

I can totally respect your answer and point of view. There is a FSBO maket out there and I encourage FSBO to continue going at it. I know you think it funny how Realtors defend their pay. I think it is funny you dodged all my questions and didnt answer them.
Web Reference: http://www.c21infinity.com
3 votes Thank Flag Link Mon Feb 25, 2008
WOW 10% no wonder why my team has over 45 listings, and why we are having one of our best years ever (this is not to knock those charging 10%, as I am now rethinking our commission rates). We take 3% on our end but the total commission we charge is based on the comps. When we do a CMA we not only do an analysis of the price the property can realistically sell for, but look to see what other agents are offering as a co-op to the buyer's agent. For example if there are several agents offering a 5% co-op to the buyer’s agent, then we may charge a total commission of 8%. However it is my firm belief that PRICE SELLS, so typically I try to show our sellers why they need to be lower priced than the competition and if someone is offering 5% to the buyers agent on an overpriced property, it is generally better to be competitively priced and offer the "usual" 3% co-op to the buyer's agent rather than over price the property with a higher co-op.

After seeing this question, I conducted some research of the homes that sold during the month of September 2007.
This is what I found...
218 Sold Offering up to 2.9% co-op
1,682 Sold with a co-op of 3.0%
174 Sold with a co-op between 3.1 - 4.0%
76 Sold with a co-op between 4.1 - 5.0%
6 Sold with a co-op between 5.1 - 6.0%
1 Sold with a co-op between 6.1 - 7.0%
7 Sold with a co-op of 7.0% or more.

Take note more homes sold offering less than the "typical" 3.0% than those with a 3.1 -4.0% co-op. Before anyone mentions it, yes I am aware that most of the listings offering less than 3.0% are REO Properties, but that does not change the facts. As you can see the higher co-op to the buyer’s agent does not appear to be making a big difference, and from what I “GENERALLY” see on the MLS the properties with the higher co-op’s are usually trying to compensate for being overpriced. Again my belief is that “price sells” in this market. Now before anyone chooses to get into a debate with me over this, I will state that I do know of a limited number of agents that say they will not show a listing unless it is paying at least a 4.0% co-op. However the agents I know that are conducting business this way are not looking out for their clients best interests, they are only looking out for their own.

We do a GREAT deal of marketing, and every agent on my team is a highly experienced professional, so after seeing this post I am beginning to rethink our commission rates.

I will leave everyone with this note. One of my buyer’s agents recently sold a New Home that was paying a 7% co-op with a $20,000 bonus. Well later on she ended up not being able to take the entire commission as Countrywide Home Loans would not allow the builder to pay her more than 8%. The funny thing is that she stumbled into this new home community with her buyer while out showing resales and the buyer wanted the Standing Inventory home that was offering all this. She had no idea of the commission offering so this was not her motivation for taking her client to this housing development. Oh by the way she told the builder that they did not get to just keep this money, and had them apply the money towards their association dues.....her buyer is paid up for 10 years.
Web Reference: http://GoadTeam.com
3 votes Thank Flag Link Sat Oct 27, 2007
The Ballent Team,
Before I was in real estate, we moved (were transferred) 4 times over a twelve year period. My answer will be a little skewed, because with our relo plan, we were always reimbursed the realtors commission on the sale of our existing home. So my information will be about the worth of an agent! That being said. whether we were reimbursed or not. We could not have made the transfer without the aid of our realtors on both sides. Do you know in all of those moves, I know it is unheard of, we never had a house on the market more than 3 weeks before it was under contract. Why! Because we did everything our agent told us to. These were not areas that were experiencing growth! Smackover Arkansas, town population 2004 until we moved, then 2000. (yes there really is a town with that name). In short getting the results you want is worth every penny!
Web Reference: http://carriecrowell.com
3 votes Thank Flag Link Sat Aug 25, 2007
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.
Web Reference: http://www.GoadTeam.com
2 votes Thank Flag Link Tue Feb 26, 2008
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.
~~~~~~~~~~~~~~~~~
And yet, people expect realtors to do it. Good post, Gary.
2 votes Thank Flag Link Tue Feb 26, 2008
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.
2 votes Thank Flag Link Tue Feb 26, 2008
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.
2 votes Thank Flag Link Tue Feb 26, 2008
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.
2 votes Thank Flag Link Tue Feb 26, 2008
In response to Mr. Anderson,

I ask why you are selling so many properties? Is it because you are running a business, like the Real Estate business? If you believe Realtors should not receive or deserve the compensations provided, have you considered giving your homes away? Why would you want to sell your homes to collect a profit? If you want Realtors to be in the business of charity, then perhaps you should follow suit. Collectively it seems the Real Estate business has done well for you, perhaps embracing it would have continued success for you.
As in any profession you do not always get paid for the perceived amount of work. Tony Robbins speaks to people, does it means because he only speaks that he does not deserve the compensation he receives? No it does not, compensation is partially attributed to knowledge, experience and results. Just how much money are you making on the properties you are selling? Do you deserve to make the amounts of money you are making because you are not a Realtor? I would never venture to say you do not deserve the compensation you receive all based on the fact that you made a smart decision to invest in Real Estate or to own a home in general. The fact is, it is not my place to speak about what you do.

Every industry has people that do the bare minimum, please do not generalize our industry as one where 90% of the agents are worthless. There are agents such as myself whom take pride in our work and our profession. The agents on the website do not get paid to come here and post about there experiences and career knowledge. Most agents on here enjoy helping people and pointing them in the right direction. I can guarantee you many of the agents on this website have paid dearly for the experiences they have accumulated, whether it be with time away from family or money to help clients achieve their dream of home ownership.
2 votes Thank Flag Link Mon Feb 25, 2008
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.
1 vote Thank Flag Link Sat Apr 5, 2008
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
1 vote Thank Flag Link Sat Apr 5, 2008
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.
1 vote Thank Flag Link Tue Feb 26, 2008
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.
1 vote Thank Flag Link Tue Feb 26, 2008
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.
~~~~~~~~~~~~~
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.
1 vote Thank Flag Link Tue Feb 26, 2008
SPAM

this is a new service that lets you list for FREE on the MLS. The exact same MLS that realtors charge 3% to 6% for. This will allow the person who wants to sell his home himself to do so and greatly reduce the money they have to shell out.
~~~~~~~~~~~

No. I'll type this slowly so you understand it this time. Realtors do not charge 3 to 6% to simply put a listing on the MLS. So stop lying.




To answer your question, I think fees should be based on services provided and on a tier system to make it more affordable to those in a pinch. For instance...
~~~~~~~~
All commission are negotiable, and there are even flat fee services, one of which you posted. So come on now, stop lying.
1 vote Thank Flag Link Mon Feb 25, 2008
Sorry that this bothers you but people need to know that there are alternatives. Here's one that will soon change the game for all of us.

http://www.iggyshouse.com/

this is a new service that lets you list for FREE on the MLS. The exact same MLS that realtors charge 3% to 6% for. This will allow the person who wants to sell his home himself to do so and greatly reduce the money they have to shell out.

To answer your question, I think fees should be based on services provided and on a tier system to make it more affordable to those in a pinch. For instance...

If someone such as myself who knows the process and is willing to manage it myself, the MLS should be Free or a nominal flat fee that I have access to.

If I am someone who is new to the process, then I get to pick and choose the services available to me through a realtor such as MLS, listings in papers and magazines, etc and I pay a flat fee for that as well

If I am a seller, I have no problem paying 3% to a buyers agent.

Realtors better start understanding that their "corner" on the market is going to dissappear if IGGYS is successful. No longer will the informed seller have to give up an additional 3% to a realtor who does nothing other than list them on the MLS.

The funniest part about all of this is how particular Realtors got in this blog when it comes to commisions.



.
Web Reference: http://www.iggyshouse.com/
1 vote Thank Flag Link Mon Feb 25, 2008
Also in response to Mr. Anderson

I would ask that you ask Mr. and Mrs. Ballen how much money they spend on their marketing of Listings on a montly basis. I personally know the represent many homes on Television through Go Sout Homes which is great marketing medium. Since you believe agents like Mr. and Mrs. Ballen merely put the listing in the MLS and throw some flyers up for listings. I encourage you open some dialog with them to see if that is what listing a home entails. Frankly, I would go hear from them on the subject.
Web Reference: http://www.c21infinity.com
1 vote Thank Flag Link Mon Feb 25, 2008
Mansur,

With all do respect to your post The Ballen Team asked a question of "What is the highest commission you would pay a Realtor and why?" at no time did they ask anyone to get together and establish a set commission (in other words price fix) it was simply a question that was asking people their "oppionions" on what they feel that they would pay. In order to be a violation of "price fixing" The Ballen Team (and anyone who responded) would have had to suggest some sort of agreement that everyone would charge the same commission rate. Which from my review of the posts, no one has ever made any sort of suggestion that anyone "fix" their commission rates.

The fact is that the Anti-Trust Laws state that we cannot "fix" commission rates, but never mentions that agents cannot freely express what they choose to charge, or what "in their opinion" is a fair commission rate.
Web Reference: http://www.GoadTeam.com
1 vote Thank Flag Link Mon Jan 14, 2008
Sorry, Ruth, I would love to take on the challenge to sell your home, but I am in California!

Hi, Illinois agents, jump in and help her! Maybe you will do such a great job, she'd give you exclusive listing after a while :-)

Sylvia
1 vote Thank Flag Link Sun Aug 26, 2007
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
Contact
I would pay 10% for the following reasons: 1. to move the property with gusto, it is more effective to market the property to other than the listing brokers on the MLS and let them inturn market to their multiple customers. This is what we call a force multiplyer approach..

The key here is to insist on your right to assign the LION-SHARE of the commission to the boker who brings the buyer. I would insist that the listing broker keeps 2.5% and offer 7.5% to the other brokers.

Under no circumstances should you allow the broker to keep the listing as an "OFFICE-EXCLUSIVE" This is the most selfish thing a broker could do to a seller.

Add a clause that if you dont get the listing price you don't have to sell.
e-mail me directly for more secrets.
1 vote Thank Flag Link Sat Aug 25, 2007
A Realtor like any professional should be paid on his/her level of effectiveness. The value a Realtor brings to a transaction should play a key role in the compensation paid.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Mon Oct 18, 2010
Without geting into a praise the Realtor for all the hard work they do and how we couldn't ever get through the transaction without them, I think somewhere between 2.5 and 3.5 percent is huge. Maybe they deserved more when the savings rates were higher and they tended to know more, but now that is a gracious plenty. Of course if the Realtor has a history and proven track record that he/she can actually deliver in this economy, well then they might be worth twice as much or more. But an openhouse sitter isn';t really worth much at all anymore.
0 votes Thank Flag Link Mon Oct 18, 2010
Funny this is always a common question. I realize the perception is that agents don't do much-until you've dealt with one who does. Anecdotally, I can tell you that on a human level, people aren't going to work very hard for nothing. If there is incentive, they will work much harder. That's simple human nature. I know a contractor who always finds people to work for him at minimum wage. Sometimes he gets people to work for literally nothing on the labor side in exchange for a promise for more work later. Inevitably, they ALWAYS do poor work, walk off the job, or most of the time he has to bring in a more skilled person (and thus more money) to fix the job. Same goes for real estate agents, lawyers, etc. So, my answer is "what is it worth to you?" If you just want a body to show up and throw a sign in the ground, I bet you can find someone to do it for hardly anything. However, later you will most likely have to pay a more skilled agent to come back and fix the mistakes!
0 votes Thank Flag Link Sun Oct 17, 2010
I m not sure exactly what our Realtor is charging in the end... But I do know that we would be completely lost without him. I have learned more from this man in 2 weeks about the market and laws and houses than I have ever known in all my life. I ve come to call him our home buying father. Cause he has taken care of and guided and protected us thru our whole journey! I hope that he gets paid well and can feel good knowing he has done a great job and we don't regret a penny of what we ll end up paying him! These people (if you have a dedicated Realtor) are truly working so hard... Driving all over town to 5 houses a day,all week long just to show me something that I don't like and don't want to buy.... then I probably call him at least twice a day...even in the evenings at home just to tell him I found another house I wanna see in the morning! lol He has earned his paycheck! And I gracefully hope its a good one!
0 votes Thank Flag Link Sun Oct 17, 2010
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.
0 votes Thank Flag Link Tue Feb 26, 2008
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 :)
0 votes Thank Flag Link Mon Feb 25, 2008
Ken

I am sorry, I didn't see your posting and will answer your questions as best I can.

All the homes I have sold were because of job relocation, not for profit and in general, because we were trying to relocate, we did not look to make huge gains. As a matter of fact from 94 to 2004 we only profited on two homes that we sold of 6, and it wasn't a whole lot.

Of the agents we did use to sell the homes, only one really did anything to help the home sell by agressively marketing the house. The rest of the houses sold because we had our closing costs covered by the company I worked for and could price 6% below the market. Needless to say, the one we did profit on was the one that had the good agent.

Through our experiences as buyers and sellers and my wifes experience as a real estate paralegal in another state, (She averaged 40 closings a month for 5 years), we have come to find that there are some good realtors and some bad as in any profession.

The housing crisis here in Vegas is a perfect example. Some realtors and lenders steered people into homes they could not afford knowing the consequences would not affect them (realtors and lenders) later.

We had a realtor in the past who simply wanted to list our home at the standard 3%/3% where we lived. It was on realtor.com and we had some flyers, THATS IT. When we had people come through, we asked thathe provide us feedback and contactthe other agent so we could determine if we were priced right or needed to do something to improve the house for sale. He considered this to be too much work to do and told us our house would sell when it sells. Needless to say, we fired him, did a flat fee MLS and sold it ourselves 3 weeks later.

I think there is a need for realtors, especially on the buying side to help you with local laws, inspections, closings, and negotiations. Thats where the money is earned and they deserve the 3%.

As I mentioned, when I did a flat fee listing, I offered 3% to the agent and had no issue with it.

In the selling side, the house sells itself. Yes there is a lot you can do to improve the chances and after you sell a couple of homes, you know what the game is. It is at this point where I think that the fees should be more negotiable and give the seller more of a cafeteria plan of marketing strategies. For the more informed seller, they need less help and can save money which helps them in turn sell quicker than those less informed.

Having said that, it is not easy to find a realtor who will do that on the selling side.
0 votes Thank Flag Link Mon Feb 25, 2008
The key here is to insist on your right to assign the LION-SHARE of the commission to the boker who brings the buyer.
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What's a boker? LOL.

The listing agent who MARKETS the home to all the other agents and the public and gets it sold does a LOT of work and spends a lot of money. In this market it takes a ton of effort. No way I will give more than a 50/50 split.
0 votes Thank Flag Link Mon Feb 25, 2008
This is what I found...
218 Sold Offering up to 2.9% co-op
1,682 Sold with a co-op of 3.0%
174 Sold with a co-op between 3.1 - 4.0%
76 Sold with a co-op between 4.1 - 5.0%
6 Sold with a co-op between 5.1 - 6.0%
1 Sold with a co-op between 6.1 - 7.0%
7 Sold with a co-op of 7.0% or more.

Take note more homes sold offering less than the "typical" 3.0% than those with a 3.1 -4.0% co-op.
~~~~~~~~~~~~~~
Ummm. Could that be because there aren't a whole lot of homes OFFERED with a coop over 4 %?
0 votes Thank Flag Link Mon Feb 25, 2008
The question is what does an agent actually do for the money? Not a whole lot in some cases. We sold a house using a "flat fee" MLS listing where we paid 399 for the same listing the Realtors use and sold the house. It saved us 3% of the sales price because we paid the buyers agents commission.
Frankly, I think the MLS should be open to any and all for a fee. In our experience, realtors are helpful when something goes wrong, but they are not required to sell a house. The problem is they are sort of like a monopoly. If you flat fee MLS your house, some won't show it because they are "offended" that you didn't use the services of a realtor. Others, good agents, will show it because they make money if it sells. Think about it, in Nevada right now, I am trying to sell a house. I have it listed with an agent ONLY because I am out of town due to a job relocation. The agent cut me a break to 1.5 % for the listing and 3% to the buyers agent. If I sell my house for 300K, I have to give my agent $4500 and their agent $9000. Now you tell me, did the listing on the MLS and the flyers he made cost $4500? I don't think so. Did the gas the buyers agent spent driving them around cost $9000. I don't thinks so there either. Its a big scam. We have had good agents, and my wife has done real estate closing for over 7 years. She will tell you that most realtors are not worth the money they get. Maybe 10% of them are. Most are just looking for a quick buck for no work
0 votes Thank Flag Link Mon Feb 25, 2008
10% to a good agent who will work the listing. I see the agents who are taking cut rates and often see they are working for the deal not working for the seller. Of course I'm going to expect a lot for 10%. Not just a sign in the yard.
0 votes Thank Flag Link Mon Aug 27, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Just parking here to see answers.
0 votes Thank Flag Link Sat Aug 25, 2007
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