I'm thinking of selling my home but I don't want to pay 6%. My home is worth 275,000. How do real estate?

Asked by B, Austin, TX Fri Aug 1, 2008

agents justify $16,500 just to sell a house? I could put my child through UT for that amount of money.

Help the community by answering this question:

+ web reference
Web reference:

Answers

57
Galileo, Home Buyer,
Sat Aug 2, 2008
If you ask a real estate agent "Do I really need a real estate agent?" of course the response is going to be frustratingly predictable. They've been rehearsing their answer to this question for years. You're better off discussing this on FSBO sites, maybe talking with a few people who have actually gone through the process.

A couple of points to keep in mind though:

1. Even if you go the entry only MLS route, you probably need to offer 3% to the buyer agent in order to get much traffic to your home. It's just a sad fact of life that buyer agents won't show their clients your home if they're not going to get paid, and most buyers have agents. DIY buyers without agents will rightly expect a discount of 2.5 to 3 percent versus comparables (since they also have the option of hiring a low-cost agent who will refund most of the commission money to them). So at best you're really only going to save 3 percent on the seller side, not the whole 6 percent.

2. You can negotiate for a lower seller side figure (say 2.5 or 2 percent instead of 3 percent) and find agents who will take you up on that.

3. It does take a lot of time and energy to get youself educated enough to sell your house yourself, and it also takes a lot of time to show your home to all kinds of potential buyers. If you're only saving two percent ($5,500) you may find it's not worth the time. There's also a risk you'll make mistakes.

HOWEVER... if you're the adventurous DIY sort of guy who changes his own oil and fixes his own plumbing and cuts his own hair and doesn't mind taking on some risk if he gets to have the fun and excitement of learning a new trade in the process --- then by all means sell the home yourself. Read a lot. Get advice from lots of people. (You can find people to sell you appraisal and CMA services a la carte for a couple hundred dollars --- remember that going FSBO doesn't and shouldn't require foregoing professional advice altogether.) Have a great time. If it doesn't work out, at least it was an adventure and you learned something. You can always go back and hire a realtor later.
6 votes
Ronda Allen, Agent, Plano, TX
Sun Aug 3, 2008
Marketing, overhead, broker split, possible buyer's agent split, and availability - not to mention expertise, experience, and negotiation. In Texas, we should and sometimes do charge more. Some sellers will happily pay a 7%, 8% or higher for the right agent with the right tools to sell their home. Especially when we're selling in neighborhoods that are relatively new and the builder is still present. What may seem like a lot to you as a grand total is a much smaller amount when you total up what an agent actually takes home and the expenses they have to pay for in advance to make that sale happen. Keep in mind that the first thing that comes off the table when you negotiate a lower percentage for your home sale is the marketing. A deal isn't always a deal if what you lose is valuable exposure for your home on the open market. I was a corporate purchasing manager before entering real estate, and I just want you to know the hardest working people I have ever encountered are the full-time, full-service real estate agents in my community. So much of what we do is behind the scenes and you would be absolutely shocked (not to mention physically exhausted) if you followed one of us around for a day. This is no 9am-5pm job when it's done right. My normal hours are 7am-7pm weekdays and 12-6pm on weekends. And, even then we end up pulling the occasional 16-hour day. I tip my hat to my fellow agents for their diligence and professionalism. If we were to divide out what we take home on a single transaction into the hours we worked on that home sale, would any of us really continue to do this? Bless you all!
4 votes
Laura Karamb…, Agent, Downers Grove, IL
Fri Aug 1, 2008
B-

Commission is negotiable and there is no standard percentage. I would suggest you interview a few agents, full service & limited service, find out what they charge and what services they offer you. You have a choice on what type of marketing, services, and exposure you need to get your home sold. Then choose the one you feel most comfortable with.

Good Luck!
4 votes
Amie, , Austin, TX
Tue Aug 5, 2008
The listing agent generall does not get to keep the full 6%, they split that with the buyers agetn. Agents pay about 1% to their broker (average), about 1% towards taxes and licensing fees, then get to have 1% left on the table, which pays for their time, marketing (signs at $50, lockbox $90, flyers $100+, internet marketing, extra minutes on our cell phone taking your calls and agent calls, gas at $4/gallon, wear and tear on our vehicles, office overhead, plus I know there is stuff I am forgetting. At the end of the day I come home to 2 hungry children that think they need to eat as well!

Guess what? About 2% of the listing on the market within about 25 miles of downtown are foreclosures and it is going to get worse. We have over 6 months of inventory on the market and there will be more. Can you sell your house without a Realtor? Sure, but 80%+ of FSBOs end up listing with an agent. At this time of the market time is money because you are heading out of the buying season as well.

Now I am guess that with a home that we are assuming is worth $275K, you are either educated, lucky, or had a good agent that helped you find it. So do you think you are going to pocket the whole $16,500? 95 times out of 100 you will have a buyers agent that will bring a buyer and either you or the buyers will pay for that agent. The agent is going to do a market analysis of the property and tell them what it is worth and if they have to pay their agent, in the end it will still be you paying because they will just subtract that from the purchase price plus want a discount for you not using an agent.

Honestly, I have other Realtors that call me to assist them with finding or listing thier property if they are not local.

As parent to parent are you going to open your home to complete strangers with a child at home?

As a graduate of The University of Texas, I would like to know where you got your pricing because it cost me a lot more than that about 10 years ago.
3 votes
Jed Lane, Agent, Petaluma, CA
Sat Aug 2, 2008
jr.
there are a lot of sellers who can't keep their mouths shut at the time they most should.
~~~~~~~~~~~~~~~~~~~~~~~
So true. Even buyers that can't resist or don't know when to hold 'em. In any serious negotiation, if you can have a proxy deliver and receive news for discussion in private you have the advantage over someone that is the decision maker doing the talking.
Most Americans do not know how to negotiate. We were never taught and our culture doens't respect it. I wonder why that is.


Galileo,
As a buyer, assume you are not working with an agent, would you subtract the typical fee in your area from the price you offered or would you give it to the seller acting on their own?
3 votes
, ,
Sat Aug 2, 2008
A lot goes into marketing a home. If you think 6% is too much, you have options.
You can negotiate your fee.
You can hire a discount broker.(you get what you pay for)
You can try to sell it yourself. (risky)

I recently considered selling and after crunching the numbers, I was pretty shocked at what all the costs are in selling. But even though I am a lender who has read hundreds of contracts and have a certain comfort level in this industry...... I, personally, would pay a full price realtor. I have seen what happens in the 'other' transactions.
3 votes
J R, , New York, NY
Sat Aug 2, 2008
I agree with Tepper! Try it yourself. See if you like having strangers walk through your home unrepresented and possibly unqualified. You might be opening yourself and family to someone that is not there to buy your home, and have alternative motives for stopping by.
~~~~~~~~~~
This reminds me of something else. I can't tell you how many times sellers have been in the house to let us in, and actually spilled their guts to me and my buyer about their financial position: usually the fact that they can't afford the house anymore and they're in over their heads. When we get outside the buyers, after they finish laughing, tell me to put in a super lowball offer because the seller is so "desperate" as they put it. I should ad that usually these sellers still hold out for unreasonable prices and don't sell, but my point was there are a lot of sellers who can't keep their mouths shut at the time they most should.
3 votes
Jed Lane, Agent, Petaluma, CA
Fri Aug 1, 2008
We've been around this block so many times. If you feel that you want to spend the time and effort to become as knowledgable about your market, the legal aspects of the transaction, mandated disclosures, answering calls, qualifying a buyer, negotiationg a fair price and applying a large blanket of CYA then do it yourself.
If you don't want to do all that then hire a professional.
Your choice and good luck. But oh, just two reminders the buyer that buys a house that is being sold by the owner isn't interested in saving the seller the money they want it themselve and sellers don't sue buyers. buyers sue sellers because the buyer is left with the problem and the seller has the money.
3 votes
Keith Sorem, Agent, Glendale, CA
Fri Aug 1, 2008
B
Thank you for your question.
You have a couple of options to consider:
1. Sell it yourself. On average about 10% of homes are sold without professional representation in the US.
You should know that the average owner-represented property sells for about 16% LESS than properties sold by Realtors
2. Use an MLS Entry only broker. You'll pay the buyer's agent their fee, plus a fee to the MLS Broker, for an additional fee they might help you do the paperwork.
3. You could hire a full service Realtor.

Here are some interesting statistics that might give you some food for thought.
I survey my MLS quarterly for the performance stats of Limited Service and MLS Entry Only brokers and this consistently is what I find:
1. Homes FAIL to sell 30% more often with a MLS Entry Only or Limited Service Broker.
2. Homes sell for less. On average homes sold by MLS Entry Only or Limited Service Brokers sell for about 2.2% less
3. Homes takes longer to sell with MLS Entry Only or Limited Service brokers.

So, if you really don't need to sell, have money and time to burn, then go for it. You might be lucky.

So getting back to the point, in most transactions I can show my clients that I actually SAVE them money when I negotiate. You should try looking at questions posed by Trulia members when they are using a Discount or MLS Entry Only Broker.

Usually they are asking "why is my home not selling. It's in the MLS". The fact is that if Realtors did not bring value to a transaction, we would not have been around over 100 years.

The questions I would suggest you ask the Realtor you interview should help you understand how we help you make the most money when you sell. This post is not long enough, however I am confident if you interviewed three Realtors you would see differences in how Realtors work.

Here is one example.

In any given market, about 20% of the listings sell within 30 days. About 80% sell in a longer period of time. We (the top agents) know that our job is to get your home sold in 30 days if at all possible.

Homes that sell within 30 days, on average, sell at about 99.54% of asking price. Homes that sell at 120 days sell for 93.67% of asking. So a good Realtor will monitor the market, sort of like chess, and make sure that your home sells. It's like getting a check for 6% instead of paying 6%. But the problem is that you'll never know this unless you interview and ask.

Hope this is helpful to you. If you need a referral to a top agent in Austin, I'd be happy to help you.
1-888-284-2056.
3 votes
J R, , New York, NY
Fri Aug 1, 2008
I'm sure it would, but not for your agent. They won't get the entire 6%. They'll get less than 1.5% out of that. But if you don't think it's justifiable, then find an agent that will charge you less!
3 votes
Russell Lewis, , Austin, TX
Fri Aug 1, 2008
Well, as a parent that has a child entering college this year I can assure you that you are partially correct. That amount would only cover 1 year.

Now to your question

"How do real estate?"

Why not ask around with friends, associates or family members and get some recommendations to call 2 or 3 experienced real estate agents and interview them about marketing your home. It really takes more than a few paragraphs here to tray and explains what years of education and experience are worth. I do understand your reluctance and somewhat distrustful attitude because there are plenty of people in real estate industry who do not perform up to professional standards. On the other hand there are many full times professional who work diligently every day to earn every dollar for their services along with many satisfied customers who are glad they employed a real estate agent to help them with what (for most) is the single most important investment of their lives.

Good luck – Russell
3 votes
Betina Forem…, Agent, Austin, TX
Wed Aug 6, 2008
Dear B,
Please remember the 6% commission is not all going into your Realtors pocket. Consider first they only really get 3% for each agent, Lets not forget their Broker will take between 50%-10% of that 3%, then there is the tax man- bye bye to 33%, then there are the costs of the listing,: signs, flyers, open houses, and administrative time to enter your home into a dozen internet sites, Errors and Omissions Insurance $200, etc.
All of a sudden that 3% is gone in a flash. I figured it all up on the sale of your $275K home.
6%=$16,500. for both Buyer and Sellers agents
3%=$8250. for one Agent
35%=2887. 35% Broker Fee
33%=$1769. Taxes
$200 for E&O Insurance
$600 Printing, gas, flyers, photographs, virtual tours & signs

Grand total $2794 earned, how long did it take to sell your home? Two months is pretty average. Could you live on $2794 for two months? Realtors work hard to make a living and it is not easy being on call 24/7. We do it because we love the business.
Good luck and I hope you are able to sell your house.
2 votes
Betina Forem…, Agent, Austin, TX
Sat Aug 2, 2008
In my opinion you should always have a pro on your team. If you don't buy and sell real estate every day, then you need the services of someone who does. They can walk you through the process and let you know what is normal and what is not. They can help you get the best deal possible and put you in touch with other professionals (title company, lenders,inspectors, repairmen, etc.) Trying to buy or sell without a Realtor is like going to court without a lawyer, which I would not recomend.
I wish you the very best of luck!
Sincerely,
Betina
2 votes
TeamDoubleZ.…, , Miami, FL
Sat Aug 2, 2008
Hello B

Plain and simple...I, and many of the other REALTOR here value our time and efforts in the process of selling homes. Many uneducated to this process don't want to hear the truth. By the way, I encourage you to try to sell your home without a REALTOR in a Buyer's Market...Sound like you might get it sold quick in these times? When your discouraged and tired please call on licensed REALTOR to help you sell your home. I willing to bet by then that your going to want to pay even more just to get someone to buy your "Golden Nest".
2 votes
Donna Mabes, , Richmond, KY
Sat Aug 2, 2008
I agree that that amount of money sounds like alot to swallow, but keep in mind that the agent who lists the house may have to split that with the agent who sells the house, unless your listing agent is able to get "both sides" of the sale. So, cut that $16,500 in half. Then, depending on where the agent works, they may have to pay franchise fees off the top before they ever see a check, especially if they work for one of the large franchises. Then, there is the broker split, because noboday pays you except your broker and he gets his share next. The broker split usually varies based on how long an agent has been selling, or what their sales volume is, or any number of other factors that are rules for the office where the agent works, but the broker always gets something. Then, when the agent finally gets the check, they have to see if what they made off the sale covers the various advertising and marketing expenses they incurred while selling your home, and depending on how long the house was on the market and what advertising was done during that time, it can be pretty pricey and the agent is out that money UP FRONT for you, before they see a dime. If the house is taken off the market or does not sell, they loose that money- just a risk of doing business. Then think about gas, open house expenses, and the value of your agents time- that has to be worth something, too. By the time all of these expenses are taken out along with splits and franchise fees, if your agent gets just one side of the sale, they'll be lucky to walk away with $2,000 on average. Maybe $4000 if they are lucky enough to sell their own listing.

Please remember, in real estate or anything else, you get what you pay for. Isn't selling your home- the single most important financial investment you have- worth the value of a good Realtor?
2 votes
Pendley Group…, Agent, Albany, OR
Fri Aug 1, 2008
I guess I would have to ask.... what is your sanity and peace of mind worth?? Selling a home can be very stressful even in the best of situations. Do you know all the legal requirements in your state? Do you know the legal ramifications of proper disclosures, the skill of sucessful negotiations and in a world that is "sue happy" are you protecting yourself against the unknown mistakes that could cost you??? Selling a property is not just "sticking a sign in the yard". If you have a good agent who IS looking out for your best interest and trying to make it as stress-free experience as possible, I would say that is well worth the price you pay.
Web Reference:  http://www.teampendley.com
2 votes
Don Tepper, Agent, Burke, VA
Fri Aug 1, 2008
Feel free to try to sell it yourself. Find some books on Amazon.com and read them. Give it a try. Understand that usually people who try selling it themselves either give up or eventually list with a Realtor. But some--the number I hear quoted is around 10%--do manage to sell it themselves. And some of them are pleased with the process.

If you do that, though, make sure you're using a good real estate attorney. And understand, too, that even if you do choose to sell it yourself, most FSBOs do offer a commission (perhaps 3%) to the buyer's agent, if your buyer is using an agent. So, there's a reasonable chance that even if you do sell it yourself, that your savings will be closer to 3% than 6% (or whatever commission you might have negotiated).

Hope that helps.
2 votes
Bruce Lynn, Agent, Coppell, TX
Fri Aug 1, 2008
Do you know which title companies do good work?
Do you know which lenders close on time?
Do you know how to keep the earnest money if a buyer doesn't close?
Do you know what questions to ask to ensure the buyer's lender is on track?
Do you know what keywords on a listing are prone to lawsuits?
Do you have a board certified real estate attorney on retainer to ask vital questions to your contract?
Do you know the latest changes to FHA financing requirements or if your house qualifies for FHA or VA financing?
Do you know what to do if the title company goes out of business after the buyer closes, but the lender has funded, or hasn't funded the second loan yet? (This happened last week with United title)
Do you know if 100% financing is still avaialble and for which borrowers?
I do.....and many many many other questions-situations-problems that come up......and so do the realtors I work with in Austin. They're worth 6 or 7 or 8%....heck they might even be worth the entire $275,000 if they sell your home in this Austin market and under these challenging times. This is no market for do it yourselfers or the $99 will get you in the MLS agents.....Call me and I'll recommend one of my favorite Austin agents for you to work with and who will take good care of you.
Web Reference:  http://www.teamlynn.com
2 votes
Grant P. RE…, , Austin, TX
Mon Aug 4, 2008
Well, you always get what you pay for. I believe that some people absolutely do NOT need a REALTOR. They do not work full-time and may have extensive experience already in Internet marketing, negotiations, and a Real Estate background. I will NEVER argue with someone that they absolutely need a REALTOR. However, the average person does not possess these skills or the time and selling a home is a major decision. There are liability issues as well as maximizing your sales price. You say that your home is worth $275,000, but what is this based on? Homes are never truly worth an exact amount and can fluctuate. For example, your home may in fact be worth $260,000 to $285,000. It depends on existing inventory. If the inventory of homes is high in your neighborhood, it can be really tough to sell. Don't view it as an all or nothing. Some agents will sell the home for a reduced rate, but remember that you get what you pay for. I think that if you ever pay an agent 7% or more, he or she better have an incredible track record because I think this is high, and I'm a REALTOR saying this.
Web Reference:  http://www.pollets.com
1 vote
Anne Needles, , Smithfield, VA
Mon Aug 4, 2008
Realtors really are skilled professionals and deserve to be paid. You don't just plop a sign in the yard. How savvy are you as far as your local market is concerned? As for the potential buyers you open your home to - Can they afford to buy your home? Are they serious buyers or a criminal element checking out all the goodies in your home? Are you aware of the many websites that you can post your home for sale? Just how familiar are you with that sales contract? Will you be available to show your home? Financing, advertising, earnest money, settlement agent verses attorney, home inspection, appraisers, mold, termites - Is your head spinning yet!
1 vote
Paul B. Perez, , Austin, TX
Sat Aug 2, 2008
You could put your child through UT............ for one semester to be realistic considering the rising cost of food, tuition, housing, & gas. While your thinking about selling your house, you are missing out on the prime selling season, and to be frank, it ends at the end of this month. After you have made your decision to sell it yourself we will look forward to you coming back to Trulia in frustration wondering why your home hasn't sold. I'm going to park it here to see what else pops up. JR was right, try to sell it yourself and see what's it is like. Perry was right too, slap it on craigslist and see what you get. I get an average of 3 hits per ad per week off of there. Good luck B! Oh yes, it is worth noting that the 6% fee was established years ago and for good reason.
1 vote
Michael Bren…, Agent, Winter Haven, FL
Fri Aug 1, 2008
I agree with Tepper! Try it yourself. See if you like having strangers walk through your home unrepresented and possibly unqualified. You might be opening yourself and family to someone that is not there to buy your home, and have alternative motives for stopping by. I am sure someone in these hard times look for easy ways to take advantage of someone such as desperate homeowners wanting to save $60.00 for every $1,000 they receive on a sale if they used a Realtor by selling it themselves.
Realtors are not there to take a big cut of your money. They get compensated for providing you a safe selling environment to a qualified buyer who found your property because the Realtor spent their own money on advertising trying to sell your home. The Realtor only gets compensated on a successful close. The Realtor is providing you with strategic pricing that coincides with your local market so your home does not sit longer costing you more money through your monthly expenses. The longer your home sits the more you pay for it.
Try it yourself! Be available 7 days a week from 9:00 am to 8:00 pm... normal showing times. **Warning** If you deny a buyer a time to view your home because it was not convenient for you, or you were working.....good luck trying to get that buyer to come back on your time. You are the one selling so you have to make it available at all times. Do not schedule a vacation or a quick weekend get away, because that is a risk probably when your buyer will come around.
Try it yourself! Have that Real Estate Lawyer ready to review an agreement for you so you do not end up in court battling legal situations that could cost you thousands....because you, or the buyer overlooked something in the agreement. By the way **Warning** the lawyer will charge you each time to review, or by the hour, even if the buyer decides not to buy. Realtors only get paid when the property closes and you can have them review as much as you want and if the buyers walk he does not get paid.

So you can think you are saving $16,000 however, If you subject your family to unsecure practices that puts them in harms way, or puts you in court because you did not adhere to the fair housing act, or several hours of Lawyer review and no outcome...... It cost you more than that and you did not sell the home yet. Try it and see if you like it.

Not trying to be a wise guy I just know you did not take that in consideration. I have many conversations with those that want to sell on their own and they thank me when I am done....because they then understand what an important role I play in selling their home, and how much it actually does save them.

6% = $60.00 for every $1,000 you still get to keep $940.00!

If you had to deliver $275,000 to many entities, and make sure every $ was accounted for, and it was done legally, correct, keep all entities out of a litigious situation, & you were held accountable for it..........you would think 6% is worth handling that kind of responsibility.

Sorry so much to read.

Michael Brenner
863 557 3300
Realtor
Keller williams
1 vote
Perry Hender…, Agent, Austin, TX
Fri Aug 1, 2008
Put an add on Craigslist and sell the house. It's possible and I know lots of people who do it.
1 vote
Wana Crouch, Agent, Tyler, TX
Fri Aug 1, 2008
Everything in real estate is negotiable! The broker determines the commissions that are charged for the services provided. There are several options available to you - some brokers offer flat fee listings or discounted fees. Feel free to check my broker's web address for additional information, if you are interested.
Web Reference:  http://www.nationalagent.net
1 vote
John Watts, Agent, Austin, TX
Fri Aug 1, 2008
My question to you is: Would you be happy to reduce your salary for the job you perform? This is what you are asking the realtor to do when they also have to pay for all of their expenses, taxes and give a portion their commission to their broker. If you are doing either a move-up or move-down, I have an adjusted rate on commission. If you are interested, please feel free to contact me at your convenience. My contact information is available on my WEB site..
1 vote
keristalchop…, , Clark, NJ
Fri Aug 1, 2008
COMMISSION IS NEGOTIABLE AND THE AMOUNT OF MONEY AND EFFORT IT TAKES TO SELL THE HOUSE IS WORTH THE COMMISSION GIVING WHICH CAN BE NEGOTIABLE. IT IS HARD TO SELL THE HOUSE YOURSELF AND TAKES LONGER BUT WITH THE HELP OF A PROFFESSIONAL AGENT WILL SAVE YOU TIME AND MONEY PLUS THE HEADACHE OF DEALING WITH UNQUALIFIED BUYERS. CONTACT ME FOR FURTHER PROFFESSIONAL ADVICE. 917 476 1251 KERISTAL CENTURY21
1 vote
T.E. & Naima…, Agent, Dallas, TX
Fri Aug 1, 2008
How do you know your house is worth 275K? Did you have a professional appraisal done or are you basing it on the tax assessed value?
1 vote
Carol Pease,…, Agent, Austin, TX
Fri Aug 1, 2008
That might cover one year at UT and they won't negotiate on tuition. Good point though. Interview several realtors before you decide to put your home on the market. Find out what your are getting for 6%. Half of that commission goes to the buyer's agent and that person splits it with their office. So the net to any agent can be as little as 1.5 percent depending on their split with their broker. If you want an honest opinion about what your house is worth, please feel free to call us for a market analysis of your home.

Carol Pease, ABR, CRB, CRS, e-PRO, GRI
512-721-6236
1 vote
;, , Riverhead, NY
Fri Aug 1, 2008
B, so don't pay 6%. Look around for agents that offer services for less, and if you prefer the agent and are comfortable with them, save some money.
Web Reference:  http://optionsrealty.com
1 vote
S, Home Buyer, Wise County, TX
Fri Oct 1, 2010
I guarantee you that Realtors are not the only ones that haven't got a raise in 30 years. Same for bail bondsman, and we diffently need to provide mints, LOL.
0 votes
J R, , New York, NY
Wed Oct 14, 2009
My listings consistently sell in much less time than other agent's listings. My last listings sold in: 5 days, 20 days, 14 days, 76 days (av DOM that town: 241 days), and 60 days (after being listed with 3 other agents over the past 3 years). I get my full fee, I never discount more than half a percent. I think it's worth it to sell quickly and move on.
0 votes
Voices Member, , Benton County, OR
Wed Oct 14, 2009
"I paid a lot of money for dinner out the other night with my son and daughter-in-law.......I did NOT get what I paid for!"

It seems we seldom get what we bargained for with children, in-laws, or dinners...

It does seem as if a good number of agents stress their value much more than the Services they actually provide...Kinda like.

We do a lot of Services stuff so you need to pay this if you want the Services stuff otherwise you'll get less Services stuff from inferior Agents who charge less for their lesser Services stuff....I have to pay for gas, refrigerator magnets, internet, electricity, water and garbage, breath mints, and much other stuff needed because of the High Quality Services Stuff I offer....Email me if you have any other Questions

Remember, Pay what I'm asking if you want Quality Services stuff pay less than that and get Less Services stuff...

.Maybe someday more Agents will understand it's the Services consumers are in need of learning about so they (the consumer) can place a value on it.
I know when I was working I valued my Services at about a Quazillion Dollars a minute but never found someone that would actually pay that for my Services, so I had to settle for less.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Tue Oct 13, 2009
Oh Dunes..there's another thread going on you'd love.....someone looking for an agent willig to work for a lower commission ( a NJ/PA licensed agent)........I am staying out of that one!

So far there have been plenty of "you get what you pay for's"......and "if an agent can't negotiate his own commission, how can you expect him to negotiate for you". and "experts don't discount"....etc .etc etc.........as an agent myself, even I cringe when I see those old cliches being typed, as though they are new and novel ideas!
Oh well................I paid a lot of money for dinner out the other night with my son and daughter-in-law.......I did NOT get what I paid for!
0 votes
Voices Member, , Benton County, OR
Tue Oct 13, 2009
(You get what you pay for) is a cliche people know is often not true, however (You do not always get what you pay for) is a fact most people have experienced......lol couldn't resist.

Agents have ample opportunity in this Forum to explain their value and why they charge what they charge, won't work for less than, people who do work for less are.......Just don't see the need to dig up a year old question to have another platform for .....I'm worth because
0 votes
Sharon Selig…, Agent, Lakeway, TX
Tue Oct 13, 2009
Hey Dunes,
What did you ultimately do? Would be interesting to know how it ended.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Tue Oct 13, 2009
Ha......................Tom...........it may be an "old" question on this thread...........but it's new every time someone asks it !!

It's one of those darn questions that never goes away!!!!!!!!

pssst.......... (just don;t say "you get what you pay for" in front of Dunes !!)

:)
0 votes
, ,
Tue Oct 13, 2009
LOL......

I didn't realize the question was so old when I answered.
I just got an email notification.

Funny stuff this post is....
0 votes
Sharon Selig…, Agent, Lakeway, TX
Tue Oct 13, 2009
Doesn't matter if you moved on. It was a good question and helpful for people to be able to express their opinions.
0 votes
Voices Member, , Benton County, OR
Tue Oct 13, 2009
You all "Boy, we all jumped on this question!!" on a question that's over a year old, B has moved on...
0 votes
Sandra Allis…, Agent, Monroeville, PA
Tue Oct 13, 2009
Go to a Realtor with a little flexibility. I can do it as low as 4.5% with out all the options that cost extra.
0 votes
, ,
Tue Oct 13, 2009
Consider the costs of NOT hiring a professional to sell your home.

Can you negotiate a real estate transaction?
What if something gos wrong?

6% sure seems like a lot. But what if you set your price 3% too low? Or worse.... 3% too high!!!
If your home sits on the market too long you will think that 6% is very small.

Beware of most discount brokers. Good realtors are wort their fee. So are 'discount' brokers.
0 votes
Sharon Selig…, Agent, Lakeway, TX
Tue Oct 13, 2009
Boy, we all jumped on this question!! I am glad you asked and I think that there is an illusion that real estate agents make a bunch of money when they sell a house. Below, Bertina gave a good description of the breakdown. I would add to that that membership in the Austin Board of Realtors and Texas Real Estate Commission's requirement that we have continuing education each year, adds significant cost.

Rather than discuss who will diminish their fee and how much, I would ask you: Do you really care how much fee you pay, and aren't you really interested in the net result? All agents are not the same, do not provide equal service, are not educated equally. I have a series of 7 questions that you can ask agents who interview for the job. I will gladly send those questions to you. As a member of MAX AVENUE, I have access to the Maximum Value Home Selling System, which is a significant cost to me. However, I believe that I bring added value to my clients, so it pays off in the long run. All houses have a 5-15% price elasticity. A qualified agent can show you how to get most, in the shortest amount of time. No magic. It takes your motivation and cooperation, as well. In the end, what you walk away from the closing table is what will be important. The issue is that people make too many assumptions about the brokerage business, without understanding how it works. Key is understanding how the agent works!!

I would say to any agent who reads this: interview to become part of MAX AVENUE-not a broker, you stay with your current broker. It is a matter of adding value to your clients.

If you really do understand the numbers, you will find that agents who quickly discount their fees do not have the funds to effectively market your property. Also, if an agent drops their fees as easily as you see that some will, how effective will they be in negotiating the best price for you. After all, the consulting and negotiating are what you are actually paying for. I hope this is helpful to you.
0 votes
David O'dell, , Austin, TX
Wed Dec 17, 2008
Definitely get the best Realtor for what you can afford. 4% total fee is about the lowest anyone out here can financially handle. I do lots of different ways, flat fee, 4%, and also staggered performance based fees... You name it. I think we as Realtors can get more creative with our fee structures especially during these tough times if your brokerage allows it. Problem is that many large brokerages simply won't allow the agents to be creative, it's either 6% fee or they can't accept the listing. I do a flat fee listing, simple MLS with flyers and such for $399. You would need to pay a Buyer's agent of course, that would be normal 3%.
Web Reference:  http://www.duplexstore.com
0 votes
J R, , New York, NY
Fri Oct 31, 2008
Easy.. find a realtor that charges 1% and provides full service (try 1% Realty). They will do everything other realtors do just as well or better and your total commission will be 4% (3% to buyers agent plus 1% to your agent) instead of 6%.
~~~~~~~~~~~~~~~~~~
I am curious why you think the listing agent, who is going to incur the most expense, deserves 1%, but the selling agent should get 3?
0 votes
Larry Tamkin, , Austin, TX
Thu Oct 30, 2008
Easy.. find a realtor that charges 1% and provides full service (try 1% Realty). They will do everything other realtors do just as well or better and your total commission will be 4% (3% to buyers agent plus 1% to your agent) instead of 6%.
0 votes
Grant P. RE…, , Austin, TX
Fri Oct 24, 2008
I won't needlessly repeat what others have so eloquently brought out, but I will say this. Find a Realtor that is willing to be creative in their fee structure.

For example, they may accept less (5%? or 4.75%) if the buyer is not represented by an agent.

Just as it is supply and demand with houses, it is a matter of supply and demand with agents. You may find a good agent but who is struggling. They may be willing to reduce their fee in a creative way. In my opinion, 6% is a great value. But if you think you can save the money and it won't hurt you financially, go for it. I don't believe that everything needs an agent; but many people THINK they don't, and they truly do!

Thanks,
Grant Pollet
Web Reference:  http://www.pollets.com
0 votes
Betina Forem…, Agent, Austin, TX
Thu Oct 9, 2008
I only intended to let you know why a Realtors commission is really not the huge number most people assume. The media thinks we make a ton of money because they don't know how its really structured. I am simply trying to help increase awareness.

Also there are two more fees: continuing education and annual membership to the local Board of Realtors and the Texas Association of Realtors. That is a couple thousand dollars each year too.
Now that you know how it breaks down do you still feel the Realtor is overpaid? I am curious to know how a civillian realy feels about it. Thanks for your time and listening to my two cents.


Betina Foreman, Realtor Austin Texas
Web Reference:  http://www.BetinaForeman.com
0 votes
;, , Riverhead, NY
Wed Aug 6, 2008
B, perhaps this will help: http://www.msnbc.msn.com/id/26014600/
Web Reference:  http://optionsrealty.com
0 votes
Michael Bren…, Agent, Winter Haven, FL
Wed Aug 6, 2008
I think we beat this subject to a pulp...... I think B is appreciative to the extent of our honesty, and kicking a dead horse will no longer help. B, I think we would like to hear your response of our suggestions and find out if you agree, or not.

Please keep in mind; I really think all of us just want to make sure you do not get hurt in the process and have your best interest at heart, and give a little more insight as to how we are compensated and why.

Sincerely
Michael Brenner
0 votes
Mylendingpla…, , Austin, TX
Wed Aug 6, 2008
Everyone is different...some people NEED the help of a professional realtor to SELL but for others a For sale by owner might be the way to go. But buyer’s agents are worth their weight so even if you go the FSBO you may want to offer a 3%+ commission to a buyer's agent. If you want to limit the amount of money you pay the listing agent there are agents who don't charge the full 3%.

The question of determining the value of your home has come up frequently in this post. It's simple--call a licensed appraiser. Because regardless what a realtor says your home is worth--the home will need to be appraised; this is usually the first step of the mortgage process.

So if you decide to go the for sale by owner route, find a good mortgage person to pre-approve your buyers. They'll know good appraisers—in fact, they’ll take care of most of the issues after you sign the contract: Appraisals, title, closings….

In fact, if you want to go the FSBO route you may want to invest $300 by buying an appraisal ahead of time as this will help you defend the price of your home. Then if someone asks you "how did you come up with your home's value"--just show them the appraisal. It's kind of hard to debate a disinterested 3rd party. Then, before signing a legally binding contract, make sure talk with their mortgage person so you'll know if you're working with a legit buyer.

Earnest money usually runs .5-1%
Close in 20-30 days.


Good luck, but don't skimp on the buyer's agent

http://mylendingplace.com/mortgage-rates/
0 votes
1 2
Search Advice
Search
Ask our community a question

Email me when…

Learn more