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

UnFacconable

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By chance, I got the year-in-review mailer yesterday from the agent we used when we bought our house in Atlanta last year. He brokered $83M in sales in 2023, putting him over $800M gross in the last 10 years. I don't know how much he's paying away to Sotheby's in agency fees but at 3% commission that still seems like a pretty good living?
I have a good friend who's an agent - My guess is that as a heavy hitter your guy is paying ~10% to Sotheby's. The splits used to be more favorable but based on what's been happening in the last decade with "superteams" and the rise of Compass and others, the splits have gotten more agent favorable. If he's doing $80M per year in deals, he likely has a team of agents and admins that he's paying out as well.

They also often do co-listings with other agents, but just like with investment bankers, they take the full deal value for the league tables.

I happened to be talking to my buddy (who leads a team) today about a deal he's working on. It's a ~$6.5M sale, his commission is 2.5% gross which is $160k. I think he said he was going to get $146k after paying his tithe to his brokerage, and then he has to pay out his no. 2, pay for marketing, and a few other items. He will probably end up with around $100k net.
 

double00

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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).

if the pricing difference is a few percent either way i'd say timing ( which is ultimately in the hands of the seller ) and timeliness of sale are more important . it would say it is definitely circumstantial to the idea of the deal but if it's my personal home that i'm selling I'd probably rather convert a sale sooner than achieve some trophy price . if i've done my job as a buyer my basis is already good and the loose change is negligible .

i'd hope the same is true of the agent btw - we're not talking about 3% of purchase price here , we're talking about 3% of the differential .

and of course ultimately the market will price the house , not the realtor .
 

double00

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where were we talking about hot sauce ? I asked my old lady to find me some bottles and she came back with a couple .

the green stuff was terrific and then I tried the red stuff . it was very very tasty . awesome flavor with not too much salt and sort of mild .

so I go ham on it and after 10 minutes i'm weeping and trying to drown the heat in beer and chips and cheese , to no avail . and then I remember oh yeah I did this last nite too I could feel the hot sauce traveling through me this morning
 

venividivicibj

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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?
But did he accept
 

mhip

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It rained so hard awhile ago that on the cameras, it looked like it was snowing...
 

ValidusLA

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I have a good friend who's an agent - My guess is that as a heavy hitter your guy is paying ~10% to Sotheby's. The splits used to be more favorable but based on what's been happening in the last decade with "superteams" and the rise of Compass and others, the splits have gotten more agent favorable. If he's doing $80M per year in deals, he likely has a team of agents and admins that he's paying out as well.

They also often do co-listings with other agents, but just like with investment bankers, they take the full deal value for the league tables.

I happened to be talking to my buddy (who leads a team) today about a deal he's working on. It's a ~$6.5M sale, his commission is 2.5% gross which is $160k. I think he said he was going to get $146k after paying his tithe to his brokerage, and then he has to pay out his no. 2, pay for marketing, and a few other items. He will probably end up with around $100k net.

This sounds about right. I ended up becoming friends withe the commercial broker who did our warehouse acquisition in 2021. We bought for $10.65m and he ended up with around $195k net.
 

jcman311

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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.
If only you would have gotten you insurance license instead. You’d be swimming in cash.
 

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