Reply to Sellers, pls stop offering pay buyer's agent commission!

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]really???[/quote]

No, I doubt this really happened. Or if it did, I am sure OP did something to provoke the response.

There are some unhinged people in this forum who are obsessed about agent compensation. Have been for years.

They thought the NAR settlement would disrupt compensation models. Maybe it will, but it hasn’t yet, namely because the settlement merely forbid the advertising of buyer agent compensation in the MLS. It didn’t do anything actually restricting buyer agent compensation.

In other words, nothing has really changed. And that’s OK.

This is what happens when you obsess about one small piece of a financial transaction instead of seeing the forest for the trees.

And let me just cut off your predictable response: No, I am not an agent and I do not work in the real estate industry in any way. [/quote]

Who isn’t obsessed with paying 6% of the value of your house to people who either do minimal work for you, or don’t work for you at all? Six percent is a LOT. That would be almost 40% of the appreciation of my house, and would be the single biggest cost of the transaction - more than lender fees, more than title insurance, more than taxes. It’s a massive market failure. [/quote]

Setting aside the point that 6% hasn’t been typical in well over two decades, you sound math challenged. Or maybe you just haven’t owned your house very long.

The only reason 5% seems so much now is the wild appreciation in houses in the first place. You probably don’t think THAT appreciation was ridiculous, right?

When houses cost $100,000, 6% commission might have netted around $1,200 for an individual agent after splits with their brokerage. Was that a reasonable charge to get a deal done?

It’s just now that houses cost closer to $1 million. At 5% that’s netting probably around $10,000 for an individual agent after splits and other brokerage fees.  Is it a lot? Sure. But that’s driven by the value of the home. And if you bought that home at $100,000 and are now selling at $1 million, you’re really going to have a hissy fit over $50,000 in commission charges? [/quote]

FFS yes I am having a hissy fit over FIFTY THOUSAND DOLLARS. That is a TON of money, the single biggest fee in the transaction, and in my particular case would amount to 40% of my appreciation. It’s absolutely absurd. I accept that I’ll probably end up paying some agents fees because the market hasn’t corrected yet (and there is still collusion) but I’m going to minimize what I can. [/quote]

+1. It's so galling that agents think people shouldn't care about $50,000. Can you imagine if you had invested $100,000 in the stock market 40 years ago, and it was now worth $1 million, and when you went to cash it out from Fidelity, they told you that there was a $50,000 fee but that you shouldn't be upset about it? It's so absurd. It's going to take a long time to get all the rot and collusion of out the real estate agent profession, but now that there's been one highly successful lawsuit, I expect the plaintiffs' lawyers and DOJ will get the job done over the coming years.[/quote]

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