Your Thougts on Real Estate Commission
- Thread starter dandxg
- Start date
If you believe this, then you probably should be reading "dummies" books. In my mind, this is one of the main things you pay a realtor for. There are forms and requirements galore, including stuff you probably never heard of and would not know whether you were omitting.
In addition, the experienced realtors do know the market. Unless you live in a cookie cutter neighborhood with a wealth of very recent comps that are nearly identical to your home available to you, it is best to get their opinion. You don't have to use it, but you should know what it is. Most FSBOs are mispriced, in either direction.
Generally <i>over</i>priced in my experience. FSBOers don't have a realtor to act as a reality-check on an inflated self-valuation of their own home, and also don't account for the fact that FSBO buyer-candidates will expect a markdown to allow for perceived risk of dealing ex-relator (for instance the risk of adverse selection -- i.e. that the house is a FSBO because no realtor would take the listing because either the house or the seller "has problems").
Chicago, and everywhere else. Realtors really work the offer when it's "NBBO," not when it's way off the market. If you were a realtor, would you waste your time, and buyers' time, showing overpriced homes?
An update.
The prospective buyers came by last week. They decided to put an offer on the other place, I believe its sold. The liked our location much better, but the other place had designer paint, slightly better landscaping, and a 3 car garage. Our place was 5-10k cheaper so I don't know that they were even serious, who knows. As I mentioned maybe the agent was just trying to get our listing. I mention that because when we worked with a buyer's agent to get our home she told us she had to show us this listing to appease here sellers, so I know it happens from time to time.
The agent met us the next day after her sister showed our place the day before, and wanted us to list 5k lower, do a number of improvements and pay 5.9% unless she brings buyer then she is 4.9%
With the help of this thread I realized that if we decided to list I will use a discount or flat fee seller agent, but pay full price to buyer's agent so that I won't be passed over since the agent we met with said she won't show up not paying full buyer's agent commission.
The agent showed us the stats and its another reason I probably won't go with her besides cost. Between 5 ppl on their team they only sold 1 home in May and June each month. 1 ! that's it. What am I paying for? While the tax credit was on they sold 5-7 in March and April.
I am thinking of doing a few improvements which I was aware of, lower price, and list discount with paying full buyer agent commish.
As mentioned I appreciate the good feedback I received. There is hope for ET yet !
The prospective buyers came by last week. They decided to put an offer on the other place, I believe its sold. The liked our location much better, but the other place had designer paint, slightly better landscaping, and a 3 car garage. Our place was 5-10k cheaper so I don't know that they were even serious, who knows. As I mentioned maybe the agent was just trying to get our listing. I mention that because when we worked with a buyer's agent to get our home she told us she had to show us this listing to appease here sellers, so I know it happens from time to time.
The agent met us the next day after her sister showed our place the day before, and wanted us to list 5k lower, do a number of improvements and pay 5.9% unless she brings buyer then she is 4.9%
With the help of this thread I realized that if we decided to list I will use a discount or flat fee seller agent, but pay full price to buyer's agent so that I won't be passed over since the agent we met with said she won't show up not paying full buyer's agent commission.
The agent showed us the stats and its another reason I probably won't go with her besides cost. Between 5 ppl on their team they only sold 1 home in May and June each month. 1 ! that's it. What am I paying for? While the tax credit was on they sold 5-7 in March and April.
I am thinking of doing a few improvements which I was aware of, lower price, and list discount with paying full buyer agent commish.
As mentioned I appreciate the good feedback I received. There is hope for ET yet !
Rodney, you are correct. Although, you would be surprised by how many realtors have loads of "purchased" listings, aka initially telling a seller what they want to hear $ wise then hammering the price down when it's a stale listing and will no longer attract what are deemed solid offers. This is my refute to simply driving around and playing the game of who has the most listings.
My advice is to dig deeper. Find the realtors that are getting the best price, shortest market time, least amount of hassle. You'd be surprised. Those realtors are not always the same one's with signs flooding a neighborhood.
You're right on all counts. I would just add -- speak with a few realtors, and hire the one who seems most intelligent and well-informed, regardless of number of listings. I've been surprised how many realtors simply aren't very smart.
As to buying listings -- yes but it's mostly the <i>seller's</i> fault -- listening to what s/he wants to hear, not to the hard truth.