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Why Do Real Estate Agents Hold Open Houses?


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2016 Jun 6, 12:58pm   5,367 views  22 comments

by exfatguy   ➕follow (0)   💰tip ($0.10 in tips)  

What's the point? The house will sell in minutes for over asking, all cash, no contingencies, by a foreign buyer, sight unseen. So what's the point of wasting time on an open house?

This isn't 1990, I just don't get it.

Comments 1 - 22 of 22   

1   BayArea   2016 Jun 6, 1:14pm  

They are real estate agents.

What else are they going to do with their time?

2   Shaman   2016 Jun 6, 1:24pm  

AF is correct. They are there to cut back room deals and accept blow jobs for the right to purchase their cartel-appropriated house. If you want the house and are willing to list yours with them, they will give you the deal.

3   missing   2016 Jun 6, 1:43pm  

To advertise themselves.

4   Strategist   2016 Jun 6, 2:35pm  

Why is the real estate industry not getting killed by the internet? The travel agents got killed. Taxi drivers got killed. Retailers are getting killed. Not the real estate business.

5   MisdemeanorRebel   2016 Jun 6, 2:49pm  

Why isn't the new auto sales industry? State Protection from technology and globalization.

6   BayArea   2016 Jun 6, 3:46pm  

Realtor is the most baffling profession in the USA.

I would have also expected the profession to be absolutely crushed shortly after the internet started to become mainstream...

Buy and sell via FSBO if you can help it.

7   dang007   2016 Jun 6, 6:23pm  

A few month ago i just sold my place, i save about 10k over the traditional agent. I when with a discount listing. All they do is list the place for $350 i put 1% for buyer agent. My traditional agent wanted 5%. I figured i save about 10k, selling price is 305. Never going back to traditional again.

8   BayArea   2016 Jun 6, 6:31pm  

dang007 says

A few month ago i just sold my place, i save about 10k over the traditional agent. I when with a discount listing. All they do is list the place for $350 i put 1% for buyer agent. My traditional agent wanted 5%. I figured i save about 10k, selling price is 305. Never going back to traditional again.

Please share the brilliant service name, so we can all benefit

9   FortWayne   2016 Jun 6, 7:30pm  

exfatguy says

What's the point? The house will sell in minutes for over asking, all cash, no contingencies, by a foreign buyer, sight unseen. So what's the point of wasting time on an open house?

This isn't 1990, I just don't get it.

It's not like that everywhere, maybe just big cities like San Francisco and New York. The further out you go, the longer the sales take, and the cheaper the land gets.

10   FortWayne   2016 Jun 6, 7:32pm  

DieBankOfAmericaPhukkingDie says

To find fresh victims.

One strategy, I think Patrick had this in his book too. Is to have other realtor friends bring their "clients" over to bid up the price. Get someone to make a high offer, use that offer to counter the other buyers, and repeat until everyone but one gives up. Bloodsucking the public at it's finest.

11   Dan8267   2016 Jun 6, 9:15pm  

DieBankOfAmericaPhukkingDie says

If you're not bludgeoning a Realtor with a wet 2 x 4, you are conspirator.

Wet? You mean I've been doing it wrong all this time?

12     2016 Jun 6, 9:24pm  

most agents are fuckwads, but the simple purpose is to clean up the joint and apply some lipstick to that pig once / avoid the bullshit of the appointment and commitment to said fuckwad agent while just being able to browse casually.

13   Dan8267   2016 Jun 6, 9:56pm  

DieBankOfAmericaPhukkingDie says

Yes, since ideally you'd soak the lumber in transmission fluid for a week before applying it to the Realtor's face, kidneys, groin and foot soles.

Is it ok if I substitute my own bodily fluids?

14   Strategist   2016 Jun 7, 6:49am  

Ironman says

Go look up "Flat Fee MLS" in your area. There's ZERO need for a "selling" agent today.

Awesome. I even saw some ads for $99.00.

15   joshuatrio   2016 Jun 7, 8:02am  

dang007 says

A few month ago i just sold my place, i save about 10k over the traditional agent. I when with a discount listing. All they do is list the place for $350 i put 1% for buyer agent. My traditional agent wanted 5%. I figured i save about 10k, selling price is 305. Never going back to traditional again.

I did the same thing back in Texas with a company called Creekview Realty. This was back in 2008. Saved me like $5k.

16   Strategist   2016 Jun 7, 8:59am  

Ironman says

Strategist says

Ironman says

Go look up "Flat Fee MLS" in your area. There's ZERO need for a "selling" agent today.

Awesome. I even saw some ads for $99.00.

I hope you didn't list/sell your house in Orange County yet with a "full service" (and I use that very loosely) realtor at 6%.

I plan on renting it out.

17   BayArea   2016 Jun 7, 10:17am  

Interesting... Using the "flat fee MLS" service, how do you get the buyer agent commission to drop from 3% to 1% ?

18   BayArea   2016 Jun 7, 10:31am  

Understood, it's predetermined in the listing.

Then buyer agents can then decide whether YOUR stated commission is enough to entice them to show the property to their sheep buyers.

19   BayArea   2016 Jun 7, 10:50am  

Ironman says

True, the buyer's agent could steer their customer to a different house. But, if your house is in good shape and priced right, it will sell. The Internet and online listings make it hard to hide from a possible buyer.

I just spoke to a realtor that told me that they always show FSBO or flat-fee listed homes to clients even if it results in little commission because it can stand to build a relationship and pay off down the line (in this particular case the realtor showed his investor client an FSBO that was purchased by the investor). That investor used the same realtor to buy additional investment properties down the line that did result in full commission.

I was also told (and chuckled) that the NAR code of ethics has rules against purposely hiding lower commission properties from clients, as if that's enforceable.

20   Dan8267   2016 Jun 7, 10:52am  

DieBankOfAmericaPhukkingDie says

Dan8267 says

Is it ok if I substitute my own bodily fluids?

Your sacrifice is noted with appreciation.

Oh, it's not problem. I just make more. I'm generous.

21   Strategist   2016 Jun 7, 11:10am  

Ironman says

BayArea says

I was also told (and chuckled) that the NAR code of ethics has rules against purposely hiding lower commission properties from clients, as if that's enforceable.

Just remember, at the end of the day, realtors work on commission, so indirectly, they will push their buyer towards the house that pays the most commission to them.

We had two examples along those lines when we were house shopping the last go around. I wanted to see a certain house, but the realtor we were working with tried to sway us away from it. Turns out, it had a lower commission rate. Also, we told her our price range WE wanted, bust she kept trying to steer us towards a lot more expensive houses, since we qualified for a lot higher mortgage.

As long as you go into the house buying process knowing ALL realtors are snakes and used car salespeople, you'll be OK!

And the snakes claim they are only looking out for the buyer.

22   BayArea   2016 Jun 7, 11:13am  

If we get below the surface for a moment, it's a fundamentally flawed business model.

Representation that has contradicting goals as those being represented.

My goal: To buy a property I desire for the least amount of money
Realtor goal: To transact as many properties as possible for as much money as possible for as little work as possible

Houston, obviously we are going to have a problem. And this is precisely why I find FSBO and flat-fee-listings interesting.

I think a lot of us just accepted real estate as just another business and paid little attention to the flaws, UNTIL we got more intimately involved. Maybe we tried to buy a house, maybe later we tried to sell a house, maybe we've done it many times, and you quickly realize how flawed the real estate business is. And so it's no surprise that this site feels the way it does about the NAR and real estate agents.

I certainly went into the game open minded and came out shocked as I learned how it all really works and how flawed the incentives are.

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