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Things That Are Bothering You, Got You All Hibbeldy-Jibbeldy, or just downright pissed, RIGHT NOW!

SixOhNine

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We used a fixed fee realtor to sell our place which was like $5K maybe then used him on the buy side as well. I wonder if these numbers realtors tout are for both sides of the process or just the sales process?
They're like bookies- they get a cut regardless of which way the transaction goes, so I'm sure they're counting buying and selling.

As an aside, I am currently involved in selling a house- we fully prepped the house, then the agent took pictures and listed it. We did so at the highest price of his recommended range. We had 2 offers in less than a day, both 11k over listing, and were under contract less than 36 hours after listing. I'm sure he'll be doing more to earn his commission between now and closing in 4 weeks, but this was a lucrative transaction for him, even at the "friends and family" rate of 4%.
 

HRoi

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I have a friend who must be the laziest realtor alive. Great guy and one of my faves to hang out with, but does not want to spend any of his time making a living.

He basically only makes a sale when he randomly hears about one of our friends wanting to sell their house and someone else he/we know is willing to buy it. He has two sons that are handy enough to take care of any work that could be deal breakers, and one of them also has a realtor’s license and ends up doing all the paperwork.

Despite that, he makes a comfortable living. He says that he makes tens of thousands in commissions on one of his patented double-dips (repping both buyer and seller). And usually the buyer and seller are friends so they don’t even give each other a hard time!!

I think he also gets a cut out of any GC work his sons do…which they give him more out of love for their father and not seeing him destitute, than for his actual contributions
 

Texasmade

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I have a friend who must be the laziest realtor alive. Great guy and one of my faves to hang out with, but does not want to spend any of his time making a living.

He basically only makes a sale when he randomly hears about one of our friends wanting to sell their house and someone else he/we know is willing to buy it. He has two sons that are handy enough to take care of any work that could be deal breakers, and one of them also has a realtor’s license and ends up doing all the paperwork.

Despite that, he makes a comfortable living. He says that he makes tens of thousands in commissions on one of his patented double-dips (repping both buyer and seller). And usually the buyer and seller are friends so they don’t even give each other a hard time!!
When I was buying my house which was a new build, the realtor repping me was also repping the builder. Once he told me that, I asked for a 3% discount on the purchase. Why the fvck should he get to double dip while only doing half the work?
 

HRoi

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When I was buying my house which was a new build, the realtor repping me was also repping the builder. Once he told me that, I asked for a 3% discount on the purchase. Why the fvck should he get to double dip while only doing half the work?
From what I can see, it seems like even less than half the work in that situation. As the builder rep he already knows what the builder’s bottom line is, so all he has to do is convince you that you’re getting a good deal (and take your requests that he knows the builder will be willing to do). But maybe an actual realtor can comment and set me straight
 

Texasmade

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From what I can see, it seems like even less than half the work in that situation. As the builder rep he already knows what the builder’s bottom line is, so all he has to do is convince you that you’re getting a good deal (and take your requests that he knows the builder will be willing to do). But maybe an actual realtor can comment and set me straight
He didn't even have to take any requests since the house is a townhouse built off a template. I didn't get to choose anything.

I just remember there was a weather delay on estimated completion so the builder and realtor asked me to sign something where they could extend completion by 6 weeks. They managed to finish in 3 and were begging me to move in early. I was like "Nope, you said 6 weeks and so I had to pay for an additonal 6 weeks rental. Tough sh!t."
 

brokencycle

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They're like bookies- they get a cut regardless of which way the transaction goes, so I'm sure they're counting buying and selling.

As an aside, I am currently involved in selling a house- we fully prepped the house, then the agent took pictures and listed it. We did so at the highest price of his recommended range. We had 2 offers in less than a day, both 11k over listing, and were under contract less than 36 hours after listing. I'm sure he'll be doing more to earn his commission between now and closing in 4 weeks, but this was a lucrative transaction for him, even at the "friends and family" rate of 4%.

My understanding is the normal rate is taken by the seller agent (typically 6%) and then the seller's agent determines how much to pay the buyer's agent. Redfin will actually show you that in the details of the list (I see a lot listed as 2.5% - $495). From my friend who makes a good living as a real estate agent, the agency takes somewhere between 1-2% from the agent depending on how much business they bring in.

There were actually lawsuits around price fixing by agents, and it looks like the federal government is looking to make some policy around it.

 

Fueco

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Timely discussion here… We just received e-contract for selling our old house. The seller fee is shown as 5.6%, which is discounted because we’re using the same agent as did our house purchase.

It’s going up for $1.07 M. We’ll see how it goes…
 

Michigan Planner

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True story:

I am a licensed realtor in the state of Michigan. Got my license on a whim when I was in grad school and a friend was getting his and got his employer to foot the bill for both of us for our classes and test if I'd buy the beer after class each evening.

Though I've never actually practiced I did keep my license current through a broker I know for about a decade. It's probably lapsed now though I don't think I'd have to do much to get it active (maybe pay a fee?).

I don't recall much from the actual test other than it being a joke and wondering why people fret about it.
 

Omega Male

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My understanding is the normal rate is taken by the seller agent (typically 6%) and then the seller's agent determines how much to pay the buyer's agent. Redfin will actually show you that in the details of the list (I see a lot listed as 2.5% - $495). From my friend who makes a good living as a real estate agent, the agency takes somewhere between 1-2% from the agent depending on how much business they bring in.

There were actually lawsuits around price fixing by agents, and it looks like the federal government is looking to make some policy around it.

Yeah the plaintiff's bar is circling, licking their chops.

 

SixOhNine

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My understanding is the normal rate is taken by the seller agent (typically 6%) and then the seller's agent determines how much to pay the buyer's agent.
Yeah, my understanding was that most result in a split of 3% to each agent. Our agent owns his agency, so I'm assuming he's keeping all of whatever he pulls on this sale.

I think part of what bothers me most about agents is that, theoretically, they're being hired in part because they know how to price the sale accurately. This guy said with our asking price at the upper end of his range, that the house might sit for a month or so. He was very wrong. When we sold our house in Houston, our agent recommended a price about 40k below what my wife decided to ask. That house also sold in less than two days, at full asking price. I'm underwhelmed by the expertise I've seen personally.
 

Texasmade

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Yeah, my understanding was that most result in a split of 3% to each agent. Our agent owns his agency, so I'm assuming he's keeping all of whatever he pulls on this sale.

I think part of what bothers me most about agents is that, theoretically, they're being hired in part because they know how to price the sale accurately. This guy said with our asking price at the upper end of his range, that the house might sit for a month or so. He was very wrong. When we sold our house in Houston, our agent recommended a price about 40k below what my wife decided to ask. That house also sold in less than two days, at full asking price. I'm underwhelmed by the expertise I've seen personally.
I should've made my agent drive me all around Houston looking at houses to get my money's worth. RE agents normally have semi decent cars.
 

brokencycle

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Yeah, my understanding was that most result in a split of 3% to each agent. Our agent owns his agency, so I'm assuming he's keeping all of whatever he pulls on this sale.

I think part of what bothers me most about agents is that, theoretically, they're being hired in part because they know how to price the sale accurately. This guy said with our asking price at the upper end of his range, that the house might sit for a month or so. He was very wrong. When we sold our house in Houston, our agent recommended a price about 40k below what my wife decided to ask. That house also sold in less than two days, at full asking price. I'm underwhelmed by the expertise I've seen personally.

I've found they are generally pretty bad at pricing. We're using a redfin agent to look for a new house, and they have some good tools that give me confidence what they say is accurate.

The Zillow chief economist wrote a book a decade or so ago about house pricing which was very interesting. One thing they found was women agents tend to overprice houses, and they sit on average longer, than with male agents, but they get a slightly higher overall final price (probably because of the anchoring effect).
 

Omega Male

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I preferred the targeted ads I got before I hit 55.


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