Your Thougts on Real Estate Commission

D

dandxg

Looking for constructive feedback only please. :)

So I am considering selling my house in Denver Metro because we have decided not to have family and its too big. Yes we can afford it.

We decided to think about selling because properties were moving under the Obama tax credit. Now that's its gone what are your thoughts? Did I wait to long. Maybe it will be extended with the recent drop in sales?

We talked to several broker and most want full commish 6%. I said well if I have to take a discount so should you no? And both said no are costs are fixed and we put alot into it blah blah. She did admit that the buyer's broker will discriminate against people offering less than 3% on their side, even though that's against the law. I have seen it posted here just pay for MLS and go on your own. I am concerned with no representation since this is a lawsuit happy country so I may go discount limited rep for me, like Help U Sell or Metro Brokers. Lastly we did talking to our buyer broker whom was good when we purchased and is offering a repeat discount but her follow through has been mediocre at best.

So basically what are your thoughts for RE prospects now that tax credit expired, do you think it will be renewed and did you have a positive or negative experience with a discount broker. Thanks

Dan
 
Aha, my favorite topic. These agents are a parasite on the productive society. Here is my principle. I will rather overpay the individual owner of the house than to pay the middle man. I bought my house new construction primarily for this reason, so as to get the pimps out of the way.

If everyone thinks like this, we can get these pimps to go do real work and not sell houses. Even on a modestly priced home of say 250K, the commission is 15K (6%), and for what, to open the lock of the house and show a house, a 6th grader can do that. In India these agents combined make 1% and that I think is more than plenty for the amount of work they do.

Most people are just plain stupid that they have paid these 6% round trip fees and nurtured these parasites. Most of these parasites live large by the way.

Coming back to your question, you will be much better off staying put in the house, unless you are planning to downsize big time, say from a 400K house to a 200K house. Selling and getting a smaller house is like taking a 6% haircut right there. Do not sell, stay put and if I may say, there is nothing more important than family, if you can. Good luck. If you must sell, try for sale by owner, remember, there may be another person on the other side of the trade that thinks like I do, and just will only buy a house without the pimps in the deal.




Quote from dandxg:

Looking for constructive feedback only please. :)

So I am considering selling my house in Denver Metro because we have decided not to have family and its too big. Yes we can afford it.

We decided to think about selling because properties were moving under the Obama tax credit. Now that's its gone what are your thoughts? Did I wait to long. Maybe it will be extended with the recent drop in sales?

We talked to several broker and most want full commish 6%. I said well if I have to take a discount so should you no? And both said no are costs are fixed and we put alot into it blah blah. She did admit that the buyer's broker will discriminate against people offering less than 3% on their side, even though that's against the law. I have seen it posted here just pay for MLS and go on your own. I am concerned with no representation since this is a lawsuit happy country so I may go discount limited rep for me, like Help U Sell or Metro Brokers. Lastly we did talking to our buyer broker whom was good when we purchased and is offering a repeat discount but her follow through has been mediocre at best.

So basically what are your thoughts for RE prospects now that tax credit expired, do you think it will be renewed and did you have a positive or negative experience with a discount broker. Thanks

Dan
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Quote from dandxg:



We talked to several broker and most want full commish 6%. I said well if I have to take a discount so should you no? And both said no are costs are fixed and we put alot into it blah blah.
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It sounds to me like you don't appreciate what good Realtors do in many cases - sure people talk about homes selling quickly and anyone can do that, etc and there is truth to that in a good market. Think about it - if this market IS tough, then they do have some costs (such as ads, etc.) and they probably will put alot into it to help sell it. Actually a realtor should be more willing to accept a lower commission is the market is hot, right?

Realtors do spend money advertising, showing homes, giving advice that you might not think of otherwise, etc. It is in a tougher market where you would like to make sure you catch the attention of the one guy who is willing to buy the house at full price, etc. If they don't see it for sale, just missing that one person could cost quite a bit.

I have worked with Realtors on both sides and have always ended up ok with the results, sure you would like them to be a bit cheaper, but that is true for anything.

Just my opinion.

JJacksET4
 
Quote from dandxg:

Looking for constructive feedback only please. :)

So I am considering selling my house in Denver Metro because we have decided not to have family and its too big. Yes we can afford it.

We decided to think about selling because properties were moving under the Obama tax credit. Now that's its gone what are your thoughts? Did I wait to long. Maybe it will be extended with the recent drop in sales?

We talked to several broker and most want full commish 6%. I said well if I have to take a discount so should you no? And both said no are costs are fixed and we put alot into it blah blah. She did admit that the buyer's broker will discriminate against people offering less than 3% on their side, even though that's against the law. I have seen it posted here just pay for MLS and go on your own. I am concerned with no representation since this is a lawsuit happy country so I may go discount limited rep for me, like Help U Sell or Metro Brokers. Lastly we did talking to our buyer broker whom was good when we purchased and is offering a repeat discount but her follow through has been mediocre at best.

So basically what are your thoughts for RE prospects now that tax credit expired, do you think it will be renewed and did you have a positive or negative experience with a discount broker. Thanks

Dan
More...


demand is there, people are having trouble in some cases getting a loan commitment. Looks like Denver is up year over year. You should try to find a realtor who can bring you a buyer otherwise they are not adding much to the equation. Certain real estate offices may have a lot of the buyer traffic and more of a natural fit as they have the buyers. Debating the usefulness of realtors is pointless, if your goal is to sell a competent agent can help. Expect longer marketing times, 6-9 months is not unusual. Have some realtors do a cma comparable market analysis and see who knows value and shows competency. I have no idea about the tax credit.

http://www.trulia.com/real_estate/Denver-Colorado/
 
I appreciate the comments and feedback. I do appreciate what salespeople do I am a former telecomm sales rep. I just figure that when times were tough, after 911 I had to take a hit to make a sale so should they. I don't want bottom basement representation I am willing to pay total 4% max. Its risky to rep your own sale because we live in lawsuit happy country.

We are the opposite of your typical American we are debt free except a big 15 year mortgage and we realize we may be condo or even apt. ppl. I don't really enjoy the upkeep and maint. cost and issues. We figure we could cut our costs in half moving to a nice apt. since we don't need all of this space and we are simple ppl with simple needs. Or maybe just visit relatives and friends around the world for awhile with all of our savings from no mortgage.

Denver Metro is strange IMO. We live in SE Denver Metro. We are on the outer edge of the metro land is plentiful so we really never had much appreciation even in the bubble but we haven't had much drop either. On the other hand you downtown we are loft is 1 million.

To the point about loan financing difficult it is and that is a problem. And I think it will continue to be a problem as the de-leveraging deflation continues.

Look forward to so more objective feedback. Good trading to all.
 
Quote from kinggyppo:

demand is there, people are having trouble in some cases getting a loan commitment. Looks like Denver is up year over year. You should try to find a realtor who can bring you a buyer otherwise they are not adding much to the equation. Certain real estate offices may have a lot of the buyer traffic and more of a natural fit as they have the buyers. Debating the usefulness of realtors is pointless, if your goal is to sell a competent agent can help. Expect longer marketing times, 6-9 months is not unusual. Have some realtors do a cma comparable market analysis and see who knows value and shows competency. I have no idea about the tax credit.

http://www.trulia.com/real_estate/Denver-Colorado/
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You bring up a good point. If its going to take 6-9 months we may just wait. Our goal would be a lower price in 3-4 month. Its stressful being a model homeowner and I would need to pay for an office to trade from also then since I may be interrupted at any time, unless we limit showings. We are having a CMA done.
 
With a commission based model Realtors on both sides of the transaction are not concerned with a transparent and efficient means of price discovery. The only way to upward mobility in their eyes in an ever inflating real estate market. They have no fiduciary responsibility are are largely culpable for creating the latest real estate bubble.

Realtor should work on a retainer and fee basis for those who desire their "expertise" like any other professional service. They should also be responsible and accountable to "know the customer" and required to give advice based on that customer's means in a buyers case.

I agree, parasitic and monopolistic. If financial services did not evolve we would still pay for full service stock transactions, $200-$300 and more a side. It's time for a bit of Darwinism and a disruptive model to take hold.
 
With technology cut them out entirely. Exchange base bid and ask individual properties, transparent for all to see and participate. A fee based professional could handle the legalities and logistics but price discovery would take place in the purest and most efficient form.


Quote from wilburbear:

Somebody should set up a website where licensed real estate agents bid on how little they'll charge to sell your house.......
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I am willing to pay total 4% max.

If the commision is 6%

Add the other 2% to the absolute rock bottom price you'd accept.

p.s. Which reminds me. At my closing we were still negotiating the price (the owner and I, he was going to hold the entire mortgage). The lawyers were mad the real estate agent got so po'd he walked out. No one cared. They changed all the documents while we waited. The real estate company had to sue the guy for the commision since he left during the closing.

I don't remember now how we got started haggling over the price at the closing but we did. I remember he upped the price about another 4k then I said I wanted his garden equipment, mowers and stuff. I knew I was going to lose so I had to get something.
 
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