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7
HeadSet
2024 Mar 27, 5:58pm
HeadSet
2024 Mar 27, 5:58pm
zzyzzx says
Simplistic. The realtor is paid for bringing in a buyer, and uses a well-established network and database to do so. Otherwise, why not just put a sign in your yard, put an ad on Facebook marketplace, and show the house yourself?
Simplistic. The realtor is paid for bringing in a buyer, and uses a well-established network and database to do so. Otherwise, why not just put a sign in your yard, put an ad on Facebook marketplace, and show the house yourself?
9
zzyzzx
2024 Apr 23, 10:01am
zzyzzx
2024 Apr 23, 10:01am
HeadSet says
Nope! The buyers finds a listing online and asks to see it.
The realtor is paid for bringing in a buyer,
Nope! The buyers finds a listing online and asks to see it.
10
HeadSet
2024 Apr 23, 12:51pm
HeadSet
2024 Apr 23, 12:51pm
zzyzzx says
I am missing your point. Who put the listing online?
My point is - the job of a Realtor is to find a buyer. If you can find a buyer on your own, you do not need a Realtor.
HeadSet says
The realtor is paid for bringing in a buyer,
Nope! The buyers finds a listing online and asks to see it.
I am missing your point. Who put the listing online?
My point is - the job of a Realtor is to find a buyer. If you can find a buyer on your own, you do not need a Realtor.
11
richwicks
2024 Apr 23, 12:53pm
richwicks
2024 Apr 23, 12:53pm
HeadSet says
Yes, why not?
Otherwise, why not just put a sign in your yard, put an ad on Facebook marketplace, and show the house yourself
Yes, why not?
12
zzyzzx
2024 Jun 19, 9:30am
zzyzzx
2024 Jun 19, 9:30am
https://www.reddit.com/r/REBubble/comments/1di4b1k/my_seller_agent_begged_me_to_pay_the_buyer_agent/
My Seller Agent Begged me to Pay the Buyer Agent
My Seller Agent Begged me to Pay the Buyer Agent
13
zzyzzx
2024 Jun 27, 10:32am
zzyzzx
2024 Jun 27, 10:32am
https://www.housingwire.com/articles/nearly-80-of-brokerages-wont-be-profitable-with-lower-agent-commissions-accounttech/
Nearly 80% of brokerages won’t be profitable with lower agent commissions
If real estate brokerages fail to make changes to their operations, 79% of them will be unprofitable if the terms of the National Association of Realtors’ (NAR) nationwide commission lawsuit settlement agreement lead to typical agent commissions dropping to 2%. This is according to a study published Tuesday by AccountTECH.
The study analyzed the operations of 100 randomly selected brokerages with agent counts ranging between five and 5,000.
According to the report, the study calculated the future net profit for brokerages while assuming that sales volume, company overhead and agent split percentages remain at current levels. It found that even a minor decrease in the commission rates charged to sellers made the companies in the study unprofitable.
AccountTECH noted that it is unclear if any of the assumptions it based its forecast on are reasonable in the near term. The firm noted that the industry is already seeing broker-owners altering commission split programs and operating expense structures in response to the potential for lower agent commissions.
“The industry is well aware that going forward, the market changes are going to make their current business models untenable,” the report states.
While nearly 80% of firms would be unprofitable if commissions dropped to 2%, the study found that 60% would be unprofitable if commissions dropped to 2.5%.
Additionally, the study also looked at how agent count and physical office count impacts future profitability. It found that among the companies with three storefronts, only 14% would remain profitable if commission rates drop to 2% per side. When it comes to agent count, the study found that for firms with 100 to 5,000 agents, 88% will be unprofitable if the average agent commission drops to 2%.
If brokerages hope to break even, AccountTECH found that if commission rates drop to 2%, more than 75% of the firms analyzed will need to increase their income or cut expenses for every agent in their firm by $2,908, or a total of $290,800 per year for a 100-agent firm.
These challenges come as brokerage gross profit margins have fallen to a nationwide median of 15%. This is due to a variety of factors, including increased pressure on brokers to provide agents with a larger split of the commission.
Additionally, rising labor and occupancy expenses have driven up operating costs, putting even more pressure on firms’ top-line revenue.
Nearly 80% of brokerages won’t be profitable with lower agent commissions
If real estate brokerages fail to make changes to their operations, 79% of them will be unprofitable if the terms of the National Association of Realtors’ (NAR) nationwide commission lawsuit settlement agreement lead to typical agent commissions dropping to 2%. This is according to a study published Tuesday by AccountTECH.
The study analyzed the operations of 100 randomly selected brokerages with agent counts ranging between five and 5,000.
According to the report, the study calculated the future net profit for brokerages while assuming that sales volume, company overhead and agent split percentages remain at current levels. It found that even a minor decrease in the commission rates charged to sellers made the companies in the study unprofitable.
AccountTECH noted that it is unclear if any of the assumptions it based its forecast on are reasonable in the near term. The firm noted that the industry is already seeing broker-owners altering commission split programs and operating expense structures in response to the potential for lower agent commissions.
“The industry is well aware that going forward, the market changes are going to make their current business models untenable,” the report states.
While nearly 80% of firms would be unprofitable if commissions dropped to 2%, the study found that 60% would be unprofitable if commissions dropped to 2.5%.
Additionally, the study also looked at how agent count and physical office count impacts future profitability. It found that among the companies with three storefronts, only 14% would remain profitable if commission rates drop to 2% per side. When it comes to agent count, the study found that for firms with 100 to 5,000 agents, 88% will be unprofitable if the average agent commission drops to 2%.
If brokerages hope to break even, AccountTECH found that if commission rates drop to 2%, more than 75% of the firms analyzed will need to increase their income or cut expenses for every agent in their firm by $2,908, or a total of $290,800 per year for a 100-agent firm.
These challenges come as brokerage gross profit margins have fallen to a nationwide median of 15%. This is due to a variety of factors, including increased pressure on brokers to provide agents with a larger split of the commission.
Additionally, rising labor and occupancy expenses have driven up operating costs, putting even more pressure on firms’ top-line revenue.
14
GNL
2024 Jun 27, 11:24am
GNL
2024 Jun 27, 11:24am
I wouldn't be surprised at all if the average commission % is already, and has been, 2.5% per side. I don't claim to know all of the ins and outs but, it looks like...
1. buyer's agents will be working for waaaaaaaaaay less per transaction
or
2. Yes, seller agents will put extreme pressure on sellers to pay the buyer agent.
3. Buyer agents will have signed contracts that stipulate they be paid a fee by the buyer (who enforces payment at the closing
table?) or the seller whichever fee is HIGHER.
4. Will buyers be forced to fund an escrow account?
1. buyer's agents will be working for waaaaaaaaaay less per transaction
or
2. Yes, seller agents will put extreme pressure on sellers to pay the buyer agent.
3. Buyer agents will have signed contracts that stipulate they be paid a fee by the buyer (who enforces payment at the closing
table?) or the seller whichever fee is HIGHER.
4. Will buyers be forced to fund an escrow account?
16
HeadSet
2024 Jun 30, 8:47pm
HeadSet
2024 Jun 30, 8:47pm
GNL says
That seems to be what happened in Omaha area. The listing commission went down from 6% to 5%.
I wouldn't be surprised at all if the average commission % is already, and has been, 2.5% per side.
That seems to be what happened in Omaha area. The listing commission went down from 6% to 5%.
17
Booger
2024 Aug 3, 8:38am
Booger
2024 Aug 3, 8:38am
With respect to this new ruling, you will need to sign an agreement just to see a property. But think about it, if you are just looking and / or want to cover yourself, use fake information it's not like they are going to ask to see an ID.
18
GNL
2024 Aug 3, 11:07am
GNL
2024 Aug 3, 11:07am
Booger says
Most Realtors will not show a house without a pre-approval.
With respect to this new ruling, you will need to sign an agreement just to see a property. But think about it, if you are just looking and / or want to cover yourself, use fake information it's not like they are going to ask to see an ID.
Most Realtors will not show a house without a pre-approval.
19
Booger
2024 Aug 3, 5:00pm
Booger
2024 Aug 3, 5:00pm
GNL says
Tell them that you are paying cash.
Most Realtors will not show a house without a pre-approval.
Tell them that you are paying cash.
20
GNL
2024 Aug 3, 6:35pm
GNL
2024 Aug 3, 6:35pm
Booger says
I believe it’s called proof of funds.
GNL says
Most Realtors will not show a house without a pre-approval.
Tell them that you are paying cash.
I believe it’s called proof of funds.
21
rocketjoe79
2024 Aug 3, 8:11pm
rocketjoe79
2024 Aug 3, 8:11pm
So, let me get this straight:
80% of the people who purport to represent the buyer in a transaction that virtually guarantees overpaying for property might have to seek new employment?
More, please!
80% of the people who purport to represent the buyer in a transaction that virtually guarantees overpaying for property might have to seek new employment?
More, please!
22
Booger
2024 Aug 4, 8:13am
Booger
2024 Aug 4, 8:13am
GNL says
So they will ask to see my financial information before they show me a house? I'm going to tell them to fuck off and find another agent.
I believe it’s called proof of funds.
So they will ask to see my financial information before they show me a house? I'm going to tell them to fuck off and find another agent.
24
WookieMan
2024 Aug 4, 10:05am
WookieMan
2024 Aug 4, 10:05am
Booger says
Most buyer agents are desperate for business. Hold open houses for another agents listings in office to get leads while the listing agent sits on their ass on Sunday.
Open houses have never been about selling the house. 98% of the time someone showing up to an open house won't buy that house. Then there's a 10% chance you'll get them as a buyer and actually close a deal on another property. If they were good agents they should ask for a pre-approval or at least introduce you to some lenders as GNL says. Common practice.
Again, they're desperate usually for money since it's commission based. So some may not ask, but the good weed out the flakey buyers kicking tires.
GNL says
Most Realtors will not show a house without a pre-approval.
I've never had anyone ask
Most buyer agents are desperate for business. Hold open houses for another agents listings in office to get leads while the listing agent sits on their ass on Sunday.
Open houses have never been about selling the house. 98% of the time someone showing up to an open house won't buy that house. Then there's a 10% chance you'll get them as a buyer and actually close a deal on another property. If they were good agents they should ask for a pre-approval or at least introduce you to some lenders as GNL says. Common practice.
Again, they're desperate usually for money since it's commission based. So some may not ask, but the good weed out the flakey buyers kicking tires.
25
GNL
2024 Aug 4, 12:25pm
GNL
2024 Aug 4, 12:25pm
Buyers agents seem to have the worst job in the transaction. Now, and I believe rightly so, the buyer's agent has to get a contract in writing before showing the buyer a house. If the buyer agent is going to go through that, they might as well ask for proof of funds at the same time. The buyer agent has practically ZERO protection (lack of a better word) but the seller agent has almost 100% protection (the house is going to sell). It will be interesting to see how this all shakes out. We're hearing differing opions from our clients.
26
zzyzzx
2024 Aug 13, 11:11am
zzyzzx
2024 Aug 13, 11:11am
Realtors already butthurt over this:
https://www.reddit.com/r/realtors/comments/1er39cb/these_pimp_listing_agents_looking_to_undercut/
I can't believe I'm already seeing some of these pimp, pusher and hustler listing agents offering nothing to the buyer's agent. Some are hoping to list on MLS and are already sticking their nose up to buyer agents.
We all work hard, but let's face the reality of the grind of a buyer's agent.
Listing agents work hard in many cases. A buyer's agent only eventually wishes to be a listing agent. Wouldn't it be great to just multiply your time by having listings and setting your own schedule. Listing agents can be the pilot and decide when to show the property and I think in general have it much easier. Sure there's staging, valuation, open houses, or even fighting to get a listing. We know how hard listing agents work.
But buyer's agents? Imagine driving around creation to 40 showings and then your buyer tells you they are going to hold off their search. Imagine trying to get a hold of listing agents that don't call back. Think about working with 5 buyers at once, getting stuck in traffic, having to write up offers last minute. Think about the struggle of trying to get your clients to the finish line against 20 other offers and coming in 2nd or 3rd place.
Think about the grind buyer's agents go to while fighting their way to the top. Most if not all just want to be a listing agent deep down, even though many love the grind of helping buyers.
Good buyer's agents help first time home buyer's dreams become a reality. The value they provide often helps change lives.
And now buyer's agents are the ones getting dogged.
These pimps that are trying to be discount brokers just to get a listing ought to be ashamed of themselves.
Good buyer's agents help first time home buyer's dreams become a reality.
So they are admitting that for non first time buyers, buyer's agents are useless!
https://www.reddit.com/r/realtors/comments/1er39cb/these_pimp_listing_agents_looking_to_undercut/
I can't believe I'm already seeing some of these pimp, pusher and hustler listing agents offering nothing to the buyer's agent. Some are hoping to list on MLS and are already sticking their nose up to buyer agents.
We all work hard, but let's face the reality of the grind of a buyer's agent.
Listing agents work hard in many cases. A buyer's agent only eventually wishes to be a listing agent. Wouldn't it be great to just multiply your time by having listings and setting your own schedule. Listing agents can be the pilot and decide when to show the property and I think in general have it much easier. Sure there's staging, valuation, open houses, or even fighting to get a listing. We know how hard listing agents work.
But buyer's agents? Imagine driving around creation to 40 showings and then your buyer tells you they are going to hold off their search. Imagine trying to get a hold of listing agents that don't call back. Think about working with 5 buyers at once, getting stuck in traffic, having to write up offers last minute. Think about the struggle of trying to get your clients to the finish line against 20 other offers and coming in 2nd or 3rd place.
Think about the grind buyer's agents go to while fighting their way to the top. Most if not all just want to be a listing agent deep down, even though many love the grind of helping buyers.
Good buyer's agents help first time home buyer's dreams become a reality. The value they provide often helps change lives.
And now buyer's agents are the ones getting dogged.
These pimps that are trying to be discount brokers just to get a listing ought to be ashamed of themselves.
Good buyer's agents help first time home buyer's dreams become a reality.
So they are admitting that for non first time buyers, buyer's agents are useless!
28
zzyzzx
2024 Aug 30, 7:01am
zzyzzx
2024 Aug 30, 7:01am
https://techcrunch.com/2024/08/29/the-guy-who-sued-nar-over-real-estate-fees-has-co-founded-a-startup/
After winning a landmark case against real estate agents, this startup aims to replace them with a flat fee
After winning a landmark case against real estate agents, this startup aims to replace them with a flat fee
29
HeadSet
2024 Aug 30, 9:16am
HeadSet
2024 Aug 30, 9:16am
zzyzzx says
Ideally, I believe listing should be a low flat fee and the commission should go to whoever brings a buyer to the house. If you do not incentivize a buyer's agent, no one will show your house. If you pay on a "per showing" basis you will get a padded bill from bogus showings
At today's prices, 3% is too high. I like the British model where the Estate Agents received 1%, and there was no MLS.
After winning a landmark case against real estate agents, this startup aims to replace them with a flat fee
Ideally, I believe listing should be a low flat fee and the commission should go to whoever brings a buyer to the house. If you do not incentivize a buyer's agent, no one will show your house. If you pay on a "per showing" basis you will get a padded bill from bogus showings
At today's prices, 3% is too high. I like the British model where the Estate Agents received 1%, and there was no MLS.
30
zzyzzx
2024 Sep 24, 9:40am
zzyzzx
2024 Sep 24, 9:40am
https://www.reddit.com/r/realtors/comments/1flw4sa/client_is_only_offering_15_for_buyer_and_15_for/
Client is only offering 1.5% for buyer and 1.5% for me the sellers agent
Client is only offering 1.5% for buyer and 1.5% for me the sellers agent
31
HeadSet
2024 Sep 24, 1:56pm
HeadSet
2024 Sep 24, 1:56pm
zzyzzx says
If you are offering a 1.5% commission to the buyer's agent in an environment where the going commission is 2.5%, no one will show your house. Better as a seller's agent to take 0.5% and give the buyer's agent 2.0%.
Client is only offering 1.5% for buyer and 1.5% for me the sellers agent
If you are offering a 1.5% commission to the buyer's agent in an environment where the going commission is 2.5%, no one will show your house. Better as a seller's agent to take 0.5% and give the buyer's agent 2.0%.
https://www.housingwire.com/articles/nar-settles-commission-lawsuits-for-418-million/
This is on top of the Massive Loss in a Missouri Lawsuit
https://www.cnbc.com/2023/10/31/missouri-jury-hits-realtors-real-estate-companies-with-1point8-billion-in-damages.html
This isn't CA, or NY, or IL, just Missouri.