patrick.net

Here’s my personal take on it.

Before the bubble (say 1998), when an average house was worth say $120k a 3% commission seemed reasonable, suddenly a few short years later, the $180k home is now worth $350k (or more). Add to that the ubiquitousness of the internet, and how it has made marketing homes and accessing listings easier... it seems that an agent gets more money for less work

This may not be true, but it is my own perception of it. I don’t see the “value added” in using an agent, particularly on the buying side.

Also, you market yourselves as “Real Estate Professionals”. Average Joe Q homebuyer may not ever realize that you are licensed (at least in the states I have lived in) as “salespeople”. In short there is a misconception regarding what a realtor is and is not.

They are not financial advisors. They are not lawyers, and the educational requirements to get ones foot in the door are minimal. Yet the assist people in making the largest financial transaction they will make in their lifetime. As a consumer, I’d expect that much more from a “Real Estate Agent” than a “Used home salesperson” But when you get down to brass tacks, they are one and the same.

Kind of like asking why people hate child molesters. How can you not hate them.

I don't put the energy into hating realtors that many here do, but I can tell you that almost every one I ever met lied constantly and pretty much the first minute I met them.

That's enough reason to dislike them strongly or not want to have anything to do with them.

If a realtor would simply help handle a transaction or a real estate search or a sale that would be OK with me. They constantly tell you that now is the time to buy no matter what. They have pretty much all said so for the last 6 years. They really don’t care at all for their clients. It’s not hard to come to the conclusion that they ain’t got no soul.

Biff

Jealousy???

E-man says

Jealousy???

Yes. I wish I had a job where I lied all the time. They must feel very secure.

And the majority of them don't make much. They sell real estate because they didn't finish school.

Biff

Biff,

You sound jealous. Thanks for confirming my believe. ;)

I'm a Real Estate agent and I can tell you no one wants to hear the truth.

There are some properties worth owning for a variety of reasons, schools, condition, location, or price. That isn't how people shop for a home. People have dreams, and buy fantasies all the time.

I worked with six investors for most of my selling career before switching to listing properties for sale. We also have a set of Real Estate services, like cleaning, painting, and yard work with the idea of preparing properties for sale.

I know a lot of good Real Estate agents who do care, and are fair. Most people don't seek out good agents. Most people hire any one who spins a great yarn.

I'd say in Seattle there are maybe as many as 100 good agents out of the thousands of people who have a license to sell.

Being a Real Estate agent is hard work, takes a 24/7 commitment, and you are constantly learning, or you lose the edge that made you good to begin with.

I know agents who grew up in the business, own plenty of property, don't need the money, but wouldn't do anything else, because it's fun, interesting, and a daily challenge.

So, I would ask the same question, why do people hate Real Estate agents?

Just to be clear, I am not a real estate agent. I do, however, work for a real estate company that partners with real estate agents.

Cutting through what you guys are saying I am actually hearing:
1. They are salesman and not experts, yet label themselves as experts.
2. The time they spend on a transaction isn't worth the commission.
3. A perception that they lie all the time to get a deal done.
4. Don't have proper credentials to help facilitate a large purchase.

I think some of these perceptions arise from the fact that of the 1mil+ agents in the country something like less than half complete more than 1 transaction a year. David says it best here:
David Losh says

I'd say in Seattle there are maybe as many as 100 good agents out of the thousands of people who have a license to sell.

imo, the biggest problem is the lack of transparency. Right now, I could find more information about the soup at the IHOP down the road then I could about the actual best agent in the bay area.

I think the general public would have a better perception of agents if there was more transparent information on transactions and reviews. Additionally, there would probably be far fewer real estate agents if people could easy figure out who was good and who was bad.

5) 6% of transaction cost just for lying and cheating both buyer and the seller.

bubblesitter says

5) 6% of transaction cost just for lying and cheating both buyer and the seller.

That's just 2 and 3... Thanks for consolidating?

Call it Crazy says

True.... does it take twice as long to sell a $300K house vs. a $600K house/ Yet, they make twice the commission....

Prices in not CA and not Bay Area are much lower, but I agree with the point none the less.

I think the rest of your points would be taken care of with some kind of clear yelp for agents type thing. It would just eliminate all the agents that never close deals and never get good reviews.

The term "used house salesman" sums it up. On both the buy and sell side there is a built in incentive to at the least "shade" the truth in order to make a sale
happen. Yes there are some few "good" agents out there but I would posit that the nature of a commission driven business inherently corrupts all that participate in it. Thus for those who have participated in the real estate game as seller or buyer said corrupted facilitator produces a foul "taste" engendering the reactions often seen on this board, which though extreme are often IMO warranted.

ChrisKolmar says

For example, I don't pay attention to car salesman when I buy a car or eye glass salesman when I get new glasses.

You should "pay attention" to the auto snake oil salesman. If you don't, you're screwing yourself. But then again, look at the job you do. Like a car salesman, you wait for subjects, pounce, fill out a bit of paperwork and wait to collect money you didn't earn. I'm not trying to attack you personally - just an observation about realtors in general.

Realtors are useless. Their "knowledge base" is an outdated system called the MLS, which used to hold and corner on the market for listings.

all realtors do is put up a sign and wait for people to buy. They take a commission for this - and attempt to use fear & intimidation to keep or gain customers. For example, telling people that they complete all of the notifications necessary for a sale.

they do a fraction of what a re attorney (a real professional with education) does for alot more, with crappy results much of the time. They complete forms that anyone can get off the internet and the "referrals" they give for inspectors, etc are laughable.

Realtors are leeches whose "profession" is waning and, sadly, require no education, experience or service/product.

EastCoastBubbleBoy says

suddenly a few short years later, the $180k home is now worth $350k (or more).

"Worth" has NOTHING to do with asking prices.

I largely agree with the general sentiments about realtors, but my realtor is actually quite honest and listens to my wants and needs. She lets me look at my own pace (I've been renting in the DC area for 5 years and looking at RE occasionally with her for 2) and never complains.

The key is to find a good realtor through referrals or keep trying new ones until you're satisfied. You can tell after the first ride along if you've found gold imo.

Fast food employees work harder than real estate agents. So it's reasonable to expect unskilled labor like real estate agents should earn less than a fast food employee.

elliemae says

But then again, look at the job you do.

I don't get it, I'm a product manager for a website...

killerhertz says

The key is to find a good realtor through referrals or keep trying new ones until you're satisfied. You can tell after the first ride along if you've found gold imo.

Pretty sure that's the answer. It's just hard to test drive agents.