As I said in an earlier post. A home seller chooses to sell "By Owner" to save the REALTOR fee for themselves and not to give it to the buyer in the form of a lower price. Why on earth would a seller choose to do the work and bear the marketing expense and not benefit from it? Two people can't claim the same money. You sir are the one who is looking at it wrong.
In fact, it IS my money. I receive compensation from the listing broker if and when I bring a buyer who is ready willing and able to purchase the home. The listing broker is paid by the seller based on a listing contract between the listing broker and the seller. I am paid by the listing broker.
There were also alot of mortgage brokers, some not so nice, in fact it seemed like there were as many mortgage brokers as there were REALTOR's before the YSP scam was revealed. Given your current business practices I'll be willing to bet that you took advantage of many borrowers and never explained that they could have gotten a lower rate if you did not take the yield spread premium (YSP) from the lender and just settled on the par rate (the lowest rate not rquiring any discount points).
Now that the YSP is gone you have moved on to offering up other peoples money to entice borrowers instead of making a commitment to close on time with the least amount of stress. 99% of all missed closings are due to lender related issues. Since you are offering other peoples money you are dependant on other people to agree to your terms. I mentioned earlier that this could be unethical based on the Florida Association of Mortgage Brokers Code Of Ethics and Standards of Professional Practice:
"The Mortgage Professional shall not offer or advertise terms or conditions that are not available". Are you prepared to pay the REALTOR credit you advertise if you don't get a REALTOR to agree?
I made a comparison earlier about the difference in time spent servicing customers. I will make a very conservative estimate here and say that a REALTOR spends five times as many hours per transaction than a mortgage broker does. Remember, I did both so I know what I'm talking about here. We won't even talk about the driving and working weekends and evenings. (Try to find a mortgage broker in his comfy office on weekends.)
Below is the fee structure for just the origination fee charged by the mortgage broker. Not addressed here are all the other lender junk fees, doc prep, processing, underwriting, etc. Bear in mind, this origination fee is money paid directly from the buyer to the mortgage broker. No mortgage broker, no origination fee.
$100,000 @ 1% = $1,000 - A reasonable amount in most cases.
$200,000 @ 1% = $2,000 - Mind Boggling from here down!
$300,000 @ 1% = $3,000
$400,000 @ 1% = $4,000
$500,000 @ 1% = $5,000
$600,000 @ 1% = $6,000
$700,000 @ 1% = $7,000
$800,000 @ 1% = $8,000
$900,000 @ 1% = $9,000
Remember the 5 :1 ratio time comparison from above. If a REALTOR providing full service expends 50 hours in a transaction and earns a 3% percent commission on a $400k sale the fee received would be $12,000 or $240 per hour. If a mortgage broker expended 10 hours (much less most of the time) and charged a 1% origination fee on a $320,000 loan (80% LTV) that broker would receive compensation at an hourly rate of $320. Now that same broker wants to offer 66% of the REALTOR's commission to the buyer which reduces the hourly rate to $79.20. Now who appears to be overpaid?
Your attempts to diminish the value of a professional full service REALTOR ring hollow when the facts are brought out in the open. If all REALTORs did was open doors for buyers then there would be no need for licensure. Most people are not aware of the fact there are two levels of licensure for real estate. "Sales associate" and "Broker". A sales associate cannot operate without the supervision of a Broker. In other words a sales associate cannot open their own brokerage firm. Mortgage brokers on the other hand require only one license. Which profession receives more training? Which profession has fewer bars to entry?
By the way. The MLS is not a free public service. It is a service that is paid for by the members of local REALTOR associations.. The listings and data in it are obtained through the hard work of the REALTOR's who posted them. Guess what. No REALTOR's no MLS. The MLS is available to other websites by an internet data exchange agreement (IDX) because the REALTOR community is very cooperative by nature and wants to give their listings maximum exposure to the widest group of potential buyers. There are many web sites such as REALTOR.com, Zillow, etc. that would not exist without the MLS. Even appraisers rely on the MLS to do their jobs. Do not forget how vital REALTOR's are to the very survival of so many other affiliated businesses.
I think I have made my postion very clear.