patrick.net

Buyer/Seller agents really have in a way been replaced with the internet mls system. Just society hasn't really realized that yet. All an agent will do for you now is simply do a search on a site like that and sign you up for email notification with certain parameters.

One can do that without the agent by simply paying something like $20/month. On many you can lookup the owner directly, and if not often that information is on the county assessor website anyway.

The biggest lie here is that one needs a buyer agent, when in reality one isn't needed there. Seller shouldn't be paying out 6% commission for 2 agents, when he can get away with only one agent (3%) or none even.

bubblesitter says

FSBO?

I wish, but the FSBO market is practically non-existent where I live.

StoutFiles says

buy why have one when buying property?

It's a cartel. The cartel tries to hide data and knowledge. They have their proprietary database (MLS). You don't actually need a realtor to buy property, but used house salesmen have a good lobby. If you have a good realtor, they may have some expertise about pricing in the local market, but most realtors are not worth the fee they are paid -- it doesn't make sense to pay a percentage fee in all cases.

You would be better off paying a lawyer to get advice on paperwork, disclosures, etc. or other things that realtors claim they are helpful for. The lawyer would both know more and be cheaper (possibly even a flat fee could be negotiated).

EMan says

The biggest lie here is that one needs a buyer agent, when in reality one isn't needed there. Seller shouldn't be paying out 6% commission for 2 agents, when he can get away with only one agent (3%) or none even.

Eman also makes a good point here. When a selling agent knows you have no agent, they take the buying agent's commission too. This is despite the fact that dual agenting isn't ethical, although realtors don't really have true ethical obligations like other professionals. Anyone who thinks the seller's agent represents your interests is a chump.

I tried to negotiate the Buyer-agent commission with the seller agent to no avail. They would rather lose the entire 3% Buyer-agent commission than reduce it by 1%-2% and receive 4% or 5% instead of 3%. I wanted to apply the savings toward the selling price thereby making the transaction more palatable to the seller, buyer, and selling agent.

I need no/little support from an agent as I am a cash buyer, research and propose properties for viewing, know contract law, research title history, plats/surveys, covenants, comps, easements, etc. Their only service is to arrange the showing date/time, open the door, place my terms & conditions in the standard real estate contract, and present the offer to the seller.

There is no need for one size fits all real estate services but with the current model, you are forced to pay an shameful percentage fee based on the properties price, regardless of the amount of the agent’s time involved.

I found it amusing when a seller agent told me what a great negotiator she was but indicated the full commission for dual-agency was not negotiable.

The brokerage companies are looking for more and new ways to salvage their outrageous fees. Nextage has entered the Arizona market with the slogan “the power of we”. If you research their business model, the “we” is not the buyer or seller but a pyramid scheme in which Nextage agents get kickbacks for other agents’ sales who they recruit into their business group.

There is no easy solution to the problem. Although the MLS data is readily available elsewhere, the “lock-box” concept (secure house entry) remains the biggest nut to crack.

Actually using a realtor that really knows the area can work to your benefit. Still, I ALWAYS recommend doing a lot of research yourself. Case in point, I have been watching the San Diego market for years and waiting for it to crash.

I was going to use Redfin to get a rebate but I didn't have ANY problem finding realtors that agreed to rebate the same % as Redfin if I used them. I found a really great realtor to buy and at closing she rebated back the same % I would have had rebated by Redfin.

I closed and 24 hours later the Escrow company wired me my commission/rebate. (And this was on a $1 million property). I recommend in this kind of environment to ALWAYS ask your realtor to rebate back the commission. Contrary to popular belief on this board....not all realtors are bad or crooks. There are some hardworking, honest and ethical realtors out there. You just have to research and seek them out.

That last post sure sounds like a troll to me.

bubblesburst says

There are some hardworking, honest and ethical realtors out there

I kinda now not believe whatever else you said.

Sybrib says

That last post sure sounds like a troll to me.

Nope, I'm not a troll and only post the truth. Actually I've donated to Patrick a few times in the past and he knows I'm not a troll.

I know realtors get a HORRIBLE reputation on this board and for good reason. But some of you sound pretty ignorant if you say that ALL realtors are unethical or dishonest. It's simply not true.

bubblesburst says

Sybrib says

That last post sure sounds like a troll to me.

Nope, I'm not a troll and only post the truth. Actually I've donated to Patrick a few times in the past and he knows I'm not a troll.

I know realtors get a HORRIBLE reputation on this board and for good reason. But some of you sound pretty ignorant if you say that ALL realtors are unethical or dishonest. It's simply not true.

My post questioned the VALUE a realtor brings to the transaction and whether that value justifies their fee. For me, the answer is none to very little. For others it may be more. Redfin is not is my area. I was referring to the national brokerage firms; they only offer the “one size fits all” model and their fee is exorbitant.

As someone stated is a previous thread, if you are an assassin, someday you will kill someone. It’s the nature of the business.

To use the word “ALL”, you need but find one exception. I have yet to find a realtor who was honest, competent, and met expectations that they set. Can I say that “all” fail to meet these criteria? No, but I’m 99% sure. This conclusion is based on real life experience and is not derived from the statements of others. Maybe I should spend more time on the NBR site to balance my judgment; NOT!

I’m glad you found a “good” realtor that helped in your real estate transaction. Fortunately or unfortunately, there is a deep well of realtors from which to choose. How many do I have to sample before I get a “good” one. I can’t lower the bar much lower. In contract law, there is an implied warrant of merchantability. For realtors, it's take what you get, then try again. Maybe it’s the nature of the business.

bubblesburst says

I know realtors get a HORRIBLE reputation on this board and for good reason. But some of you sound pretty ignorant if you say that ALL realtors are unethical or dishonest. It's simply not true.

and to be frank I have never known one that was an ethical man/woman in that industry. Too much conflict of interest and greed, and too little education.

Edzakory says

you need but find one exception. I have yet to find a realtor who was honest, competent, and met expectations that they set. Can I say that “all” fail to meet these criteria? No, but I’m 99% sure. This conclusion is based on real life experience and is not derived from the statements of others. Maybe I should spend more time ...

I’m glad you found a “good” realtor

That's kind of like saying to the person who randomly bought a winning lottery ticket, "I'm glad you got the winning lottery ticket, maybe I should spend more time buying more lottery tickets".
There's not enough minutes in the day to do all that searching for the "right" Realtor®. Might as well invest one's time searching for the "right" property and then have an attorney to represent you. Some of them even have a realtor license both don't work as Realtors®.
Really, the purchase is such a big deal and carries with it so much risk why would anyone let someone else drive it?

To answer the question, the seller is bound by the listing contract to give up 6% of the purchase price regardless of whether the buyer has an agent or not.

Since it is the buyer's money paying everyone, this 6% is coming from the buyer.

The best bet is to use redfin or wait for the house to go unsold and delisted, and then present your offer via a real estate lawyer; if you do this right you can escape the 6% altogether.

Realtors have jammed themselves into the process but everybody else -- mortgage broker, title company -- is doing the actual work during a closing.

Hey Troy,

shame on you.

It's Realtors®, okay?

Troy says

seller is bound by the listing contract to give up 6% of the purchase price

Why are not sellers waking up? Don't they ever think of saving that 6%?

bubblesitter says

Why are not sellers waking up? Don't they ever think of saving that 6%?

They think probably they will find the best price for their house only if they list it on listings that gain the most visibility. It is a vicious cycle, this whole realtor-buyer-seller-realtor loop.

May be they could go through all the trouble of selling the house on their own, but only could get 6% lesser than what the seller agent could have gotten.

The masses have been brainwashed so much that I am afraid if they'd ever wake up to this realty scam.

austrian_man says

but only could get 6% lesser than what the seller agent could have gotten.

pretty much this. Buyers arrive with their own bids. The more buyers you can reach the higher the top bid will be, generally speaking.

I've gotta pay 10% on a ebay auction this month, so I know the feeling.

austrian_man says

The masses have been brainwashed so much that I am afraid if they'd ever wake up to this realty scam.

I guess so.

bubblesitter says

austrian_man says

The masses have been brainwashed so much that I am afraid if they'd ever wake up to this realty scam.

I guess so.

Yes they have. Like elites who control the Government-Finance complex, and the pop media, mislabeling Rising Prices as Inflation, where instead, Rising Prices can be (can also not be) an effect from inflation. Rising Prices can also be caused by Supply versus Demand during a time of deflation.

Some Realtors have access to pocket listings, contacts at bank real estate departments, etc. stuff thats not in MLS.

Of course, the really great deals will be purchased by the Realtor themselves.

C Boy says

Some Realtors have access to pocket listings, ... really great deals will be purchased by the Realtor themselves.

Hey Boy,
it's Realtor®, okay?

The ONLY reason for low budget "trained" Realtors ( 90% of the coven) is the FACT they control the real estate market for their "big shot" brokers by sniffing out FSBO's to get MLS listings at ever higher and higher prices. Now that the inventory is busting at the seems, THEY DON"T WANT INVENTORY...unless it's a long torturous sale of a bank owned REO ...that still screams a too high price.

Back to your question. Once the criminal indictments start coming down, the Realtors will provide personal entertainment for the other rapists, murderers and dope dealers in prison.

Lets stalk about it HOW MUCH DO THESE MORONS have to know if they get take a state test after a weekend class in an Real Estate school with a "NO PASS---NO Pay" policy.

Check this one out--->http://www.californialicense.com/?gclid=CMGt0pno-KQCFcrt7QodxCAzhQ&gclid=CPP7ssW6-KkCFSN5gwodJH-naw $99 + ANY 4 yr degree = CAL state real estate BROKERS LICENSE. It sounds difficult? Are you alive? Have a pulse ? Do you have the ability to get room temperature IQ ( in the winter) if you try? No applicants with IQ above 70 need apply.

Contiued- If you are as dumb as a post---YOU might be qualified. Hookers are a profession with higher requirements. At least with them you know your are going to get ZXcrewed!

I actually took the first class in the real estate salesperson sequence at a city college in 2008 . . . waste of time, doing it online is much better.

I recommend every buyer get their salesperson license, most of the stuff on the tests is pretty useful information in general.

Hell, everyone should sit for the broker license test. If you've got a 4 yr degree you don't have to have any experience as a salesperson, it's just 5 more courses in addition to the 3 for salesperson.