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

Forum Index » Real Estate

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

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][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]

The vast majority of sellers are not in a position where they bought for $100,000 and selling for $1 million, and that 50k matters.

There are some who stay in a house for 3-4 decades, but on average in this day and age, people are more mobile - or need to be. Sometimes the unexpected happens and they need to move. Most people are not as rich as DCUM and 50k or 5% of their home’s value is a pretty big hit on their finances. So you can add me to the hissy fit pile as well.

[/quote]

I want to know if agents are actually so stupid that they believe 5% is NBD and a rounding error? If so, all the more reason to avoid them. [/quote]

OP here again. It was an 800k house I wanted to buy. The “buyer agent” who I was forced to sign up with just to pass my offer to the seller would have pocketed 3% , and the selling agent 2.5%. The buyer agent did absolutely nothing maybe an hour in total emailing me list of comparable properties .

Do you think his services were worth $24,000???[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics