Anonymous wrote:I call BS on the high salaries. If 6% if the standard, that is split between listing broker and selling broker and further split between listing agent and selling agent. That's 1.5% to the realtor.

You'd have to sell about $70 Million in Real estate (1.5% x 70M = $1.05 M). I don't believe too many agents are closing $70M of real estate a year.

I posted about our top agent earlier. The weekend when we closed on our last sale, this agent had 7 other closings. In a quiet time of year. We were guessing easily $70m over the course if the year. More if the agent had a big sale or two. We don't know for sure of course.

Real estate is one of those long-tail professions. There are a few top agents who make big money, then the bulk of agents barely scrape by. Keep in mind many of those barely scaping by do it part time.

For example, if you're in Bethesda, you've probably seen Jane Fairweather signs out there. She's an operation. She's got a big staff, and a "brand". I'm guessing she gives a pretty small % of her fee to Long & Foster, but dont' know for sure. She's making big bucks.

The value of a good, experienced agent is not to be discounted. In our case, we bought short sales through our agent, and it was clear the seller's agent was totally clueless how they work negotation-wise, so our agent basically had to steer them through it, while still representing our interests.

To me, I'd pick an agent who has some professional past background, like a former lawyer or accountant. They understand a lot of the business and legal side to real estate, which can be helpful.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not enough for the incredible work they do: printing out leaflets, putting up a sign, entering the data in MLS... - if anything, 6 percent is too little.

not an agent but I can tell you that you're thinking about this the wrong way. You are only focusing on what they sell - I bet any agent on here can tell you countless stories of the thousands upon thousands of dollars spent on marketing a home only to end up not selling it.

agents only eat what they kill. You on the other hand can count on a paycheck every two weeks. I bet you'd change your tune if you knew that your kids eating or not eating was totally based on your ability to sell or not sell a house.

Not the PP, but the issue is that I don't think realtors provide a valuable service. (Or, to be more precise, they provide a service that exists only because other realtors force it to exist; its essentially a guild system and it creates a huge amount of economic waste). Obviously I think realtors should be able to feed their families, I just think the world would be better if they all fed their families by doing something other than being realtors.

+1, although companies like Redfin and iAgent will probably cut into this market substantially as their profit margins are more reasonable. Also, since the barriers to entry are so low to become a realtor they do nothing to preserve the quality of the pool of agents and there's not much differentiation between good and average agents.

Anonymous wrote:

Anonymous wrote:Not enough for the incredible work they do: printing out leaflets, putting up a sign, entering the data in MLS... - if anything, 6 percent is too little.

not an agent but I can tell you that you're thinking about this the wrong way. You are only focusing on what they sell - I bet any agent on here can tell you countless stories of the thousands upon thousands of dollars spent on marketing a home only to end up not selling it.

agents only eat what they kill. You on the other hand can count on a paycheck every two weeks. I bet you'd change your tune if you knew that your kids eating or not eating was totally based on your ability to sell or not sell a house.

Not the PP, but the issue is that I don't think realtors provide a valuable service. (Or, to be more precise, they provide a service that exists only because other realtors force it to exist; its essentially a guild system and it creates a huge amount of economic waste). Obviously I think realtors should be able to feed their families, I just think the world would be better if they all fed their families by doing something other than being realtors.

I do commission rebates. I made over $200K this past year, but I only work 2-3 hours a day if that.

Anonymous wrote:I call BS on the high salaries. If 6% if the standard, that is split between listing broker and selling broker and further split between listing agent and selling agent. That's 1.5% to the realtor.

You'd have to sell about $70 Million in Real estate (1.5% x 70M = $1.05 M). I don't believe too many agents are closing $70M of real estate a year.

The higher the sales volume the higher the split. Most productive agents have at least an 80 percent split. What is the BS factor is that most agents who produce $70 million have teams who must be paid. I sell about $40 million with no team and make more money than a lead agent on a team which sells $70 million.

Anonymous wrote:

Anonymous wrote:Anyone can be a real estate agent Very few people can be a successful real estate agent. Please try it and then come back here in a year and tell me why I do not earn my commission.

Remember, too, that selling real estate is a service, and you are not required to use the service. You can buy and sell houses with no agent.

So not true!
Often the only way to see a house is to go through an agent. If there is a way to go around that, I'll be happy to know it.

Just because an agent shows you a house doesn't mean you have to use an agent. Write your own offer or have a lawyer do it and tell the agent you want it submitted to the seller. Agent is required by the listing agreement to submit all written offers to the seller. I have had this happen several times. Not a big deal

Anonymous wrote:I call BS on the high salaries. If 6% if the standard, that is split between listing broker and selling broker and further split between listing agent and selling agent. That's 1.5% to the realtor.

You'd have to sell about $70 Million in Real estate (1.5% x 70M = $1.05 M). I don't believe too many agents are closing $70M of real estate a year.

The big sellers often get a better split than 1.5%. And many of these agents actually have "teams" of lower priced agents.

I call BS on the high salaries. If 6% if the standard, that is split between listing broker and selling broker and further split between listing agent and selling agent. That's 1.5% to the realtor.

You'd have to sell about $70 Million in Real estate (1.5% x 70M = $1.05 M). I don't believe too many agents are closing $70M of real estate a year.

Anonymous wrote:

Anonymous wrote:Anyone can be a real estate agent Very few people can be a successful real estate agent. Please try it and then come back here in a year and tell me why I do not earn my commission.

Remember, too, that selling real estate is a service, and you are not required to use the service. You can buy and sell houses with no agent.

So not true!
Often the only way to see a house is to go through an agent. If there is a way to go around that, I'll be happy to know it.

A giant percentage of posts on the real estate board involve buying a house with a lawyer instead of an agent. Read them if you are so inclined.

Anonymous wrote:Anyone can be a real estate agent Very few people can be a successful real estate agent. Please try it and then come back here in a year and tell me why I do not earn my commission.

Remember, too, that selling real estate is a service, and you are not required to use the service. You can buy and sell houses with no agent.

So not true!
Often the only way to see a house is to go through an agent. If there is a way to go around that, I'll be happy to know it.

Anyone can be a real estate agent Very few people can be a successful real estate agent. Please try it and then come back here in a year and tell me why I do not earn my commission.

Remember, too, that selling real estate is a service, and you are not required to use the service. You can buy and sell houses with no agent.

Then quit being agent and do something else. We bought and sold twice with our agent and she pocketed commission from more than $5mm just from us in six years.

Anonymous wrote:

Anonymous wrote:You should watch Million Dollar Listing LA or NY.

LOVE that franchise!!

Cannot stand Frrrreeeedrik!! but I really like Ryan and Luis.

MDLA - Cannot stomach Josh Altman but I love Flagg and Madison. I miss Chad.

Frederik is very good though. I would hire him.

Anonymous wrote:

Anonymous wrote:Not enough for the incredible work they do: printing out leaflets, putting up a sign, entering the data in MLS... - if anything, 6 percent is too little.

not an agent but I can tell you that you're thinking about this the wrong way. You are only focusing on what they sell - I bet any agent on here can tell you countless stories of the thousands upon thousands of dollars spent on marketing a home only to end up not selling it.

agents only eat what they kill. You on the other hand can count on a paycheck every two weeks. I bet you'd change your tune if you knew that your kids eating or not eating was totally based on your ability to sell or not sell a house.

The 6% isn't so unreasonable in other parts of the country where houses sell for less. But around here where many houses sell for north of $500K you're looking at $30K just to sell the house.