Author Topic: US Realtors  (Read 830 times)

ukgimp

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US Realtors
« on: February 04, 2020, 09:57:52 PM »
Mrs talking to a friend in CA.

Iím listening. Why on Earth is there no disruptive alternative to their crazy add commissions?

rcjordan

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Re: US Realtors
« Reply #1 on: February 05, 2020, 03:54:49 AM »
There have been 2 or 3 attempts, but none seem to stick.  Particularly not in rural markets.

ukgimp

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Re: US Realtors
« Reply #2 on: February 05, 2020, 04:44:36 AM »
Why would you say that is?

Seems odd to me.

ergophobe

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Re: US Realtors
« Reply #3 on: February 05, 2020, 06:38:24 AM »
Because people are stupid. Friend just went into negotiations with someone. Pitched the idea that they could save money by not having a realtor. The seller then started doing all sorts of insane things that no realtor would let their client do. My friend is back to working with a realtor.

ukgimp

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Re: US Realtors
« Reply #4 on: February 05, 2020, 09:39:56 AM »
What sort of crazy things.

How hard can it be?

Itís like a digital yard sign with pictures. I just donít understand it :-)

Drastic

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Re: US Realtors
« Reply #5 on: February 05, 2020, 02:35:57 PM »
Most people probably buy a home once or twice. There are a lot of pitfalls from inspections to repairs, flood planes, hidden termite damage, HOA rules, insurance, permits, mortgage/financing and on and on. Joe Sixpack has no idea half of this stuff even needs to be addressed, let alone how to navigate it successfully. Enter the need for someone to help, so they get a piece of the pie.

Mackin USA

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Re: US Realtors
« Reply #6 on: February 05, 2020, 04:09:16 PM »
DRAS is correct AND the seller does not have the marketing experience or channels needed to get the BEST price.
Mr. Mackin

ergophobe

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Re: US Realtors
« Reply #7 on: February 05, 2020, 04:34:09 PM »
>>pitfalls from inspections to repairs, flood planes

This was a pure land sale. Almost none of that applies.

>>What sort of crazy things.
 - changing goalposts
 - trying to combine then separate then combine deals
 - at the last  minute, deciding that she, the seller, should get a 10% commission

I don't remember it all. But it dragged on for two months for a $200,000 pure land sale with no contingencies and finally fell apart at the end. Huge time sink for my friend. If they had just gotten realtors involved, they would have stopped that insanity.

Travoli

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Re: US Realtors
« Reply #8 on: February 05, 2020, 05:32:14 PM »
>How hard can it be?

The buying/selling process, rules and forms can vary widely between states and localities. It helps having a local expert navigate and advise.

That said, the traditional 6% model is eroding. Sellers can list their home on RE sites (not MLS) without a RE professional. That potentially adds 3% to their net proceeds.
Some brokers offer a buyer rebate. At closing, buyers can get a rebate of up to 2%of the purchase price.
I see ads for discount seller brokers and buyer rebate brokers pretty frequently these days.

rcjordan

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Re: US Realtors
« Reply #9 on: February 05, 2020, 10:02:30 PM »
Realistically, on an average, 3-bedroom, standalone residential sale the time, paperwork, advertising, AND legal liability that a broker assumes (along with the overhead of having an office & staff) makes 6% come out about right.  About half (maybe more) of your transactions are going to go bad and the realtor gets nothing in most of those cases and has to eat sunk costs.

The alternative that I like the best was called, IIRC, ala carte or unbundled pricing.  In that model, the realtor developed an itemized price list for services; Photos $50, Negotiating contract $300, Closing paperwork $200, yada yada yada.  The seller (or buyer, if acting as a Buyers Agent) would pay those no matter if the property sold or not.  It was more than fair, but **NOBODY** -  Seller OR Buyer - would opt for it having been spoiled by the commission-only-if-sold model.

>land

For residential lots, we charge 8%-10% because they are typically on the market a very long time and require tons of advertising, lots of contact with 'lookers', and -IMO- an agent that has lot sale experience to get it to close.

Farms and large tracts are usually marketed by specialists.
« Last Edit: February 05, 2020, 10:04:55 PM by rcjordan »