Home › Forums › Closed Forums › Buying and Selling RE › Discount realtor or not
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urbanrealtor.
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May 4, 2009 at 10:29 AM #393224May 4, 2009 at 10:56 AM #392570
XBoxBoy
Participant[quote=sushilover]does it make sense to hire a discount realtor? Are they giving advise on the properties?[/quote]
Sushilover,
Before you make the biggest purchase of your life, please understand something. Unfortunately, the way realtors are paid causes lots of conflicts of interest, and lots of bad incentives to the realtors to mislead you. So, it really falls on you to learn about the neighborhood you are interested in, the current state of the market, and a host of other issues. Any advice anyone gives you, whether it is a seller, a realtor, a neighbor or even a friend, you need to question and I mean really question. The people who blindly trust their realtor to represent their interest are the ones most likely to be “taken”.
That’s not to say there aren’t some very good and ethical realtors out there. But the system is very corrupt, and there are lots of rather shader realtors who are very good at giving the impression they are extremely ethical, when in fact they are not. Sad but true.
More to the point of your question, ethical agents are just as likely to be discount realtors as full price realtors. Likewise a discount realtor is just as likely to give honest advice as a full price realtor. So, if getting advice from your realtor is something you want, (which I think you should be very cautious about) then I don’t see any disadvantage to a discount broker.
If you’re looking for a discount realtor, I believe that SD Realtor (who posts here regularly) does give discounts, but you’d need to check with him for specifics.
XBoxBoy
May 4, 2009 at 10:56 AM #392835Participant[quote=sushilover]does it make sense to hire a discount realtor? Are they giving advise on the properties?[/quote]
Sushilover,
Before you make the biggest purchase of your life, please understand something. Unfortunately, the way realtors are paid causes lots of conflicts of interest, and lots of bad incentives to the realtors to mislead you. So, it really falls on you to learn about the neighborhood you are interested in, the current state of the market, and a host of other issues. Any advice anyone gives you, whether it is a seller, a realtor, a neighbor or even a friend, you need to question and I mean really question. The people who blindly trust their realtor to represent their interest are the ones most likely to be “taken”.
That’s not to say there aren’t some very good and ethical realtors out there. But the system is very corrupt, and there are lots of rather shader realtors who are very good at giving the impression they are extremely ethical, when in fact they are not. Sad but true.
More to the point of your question, ethical agents are just as likely to be discount realtors as full price realtors. Likewise a discount realtor is just as likely to give honest advice as a full price realtor. So, if getting advice from your realtor is something you want, (which I think you should be very cautious about) then I don’t see any disadvantage to a discount broker.
If you’re looking for a discount realtor, I believe that SD Realtor (who posts here regularly) does give discounts, but you’d need to check with him for specifics.
XBoxBoy
May 4, 2009 at 10:56 AM #393046Participant[quote=sushilover]does it make sense to hire a discount realtor? Are they giving advise on the properties?[/quote]
Sushilover,
Before you make the biggest purchase of your life, please understand something. Unfortunately, the way realtors are paid causes lots of conflicts of interest, and lots of bad incentives to the realtors to mislead you. So, it really falls on you to learn about the neighborhood you are interested in, the current state of the market, and a host of other issues. Any advice anyone gives you, whether it is a seller, a realtor, a neighbor or even a friend, you need to question and I mean really question. The people who blindly trust their realtor to represent their interest are the ones most likely to be “taken”.
That’s not to say there aren’t some very good and ethical realtors out there. But the system is very corrupt, and there are lots of rather shader realtors who are very good at giving the impression they are extremely ethical, when in fact they are not. Sad but true.
More to the point of your question, ethical agents are just as likely to be discount realtors as full price realtors. Likewise a discount realtor is just as likely to give honest advice as a full price realtor. So, if getting advice from your realtor is something you want, (which I think you should be very cautious about) then I don’t see any disadvantage to a discount broker.
If you’re looking for a discount realtor, I believe that SD Realtor (who posts here regularly) does give discounts, but you’d need to check with him for specifics.
XBoxBoy
May 4, 2009 at 10:56 AM #393097Participant[quote=sushilover]does it make sense to hire a discount realtor? Are they giving advise on the properties?[/quote]
Sushilover,
Before you make the biggest purchase of your life, please understand something. Unfortunately, the way realtors are paid causes lots of conflicts of interest, and lots of bad incentives to the realtors to mislead you. So, it really falls on you to learn about the neighborhood you are interested in, the current state of the market, and a host of other issues. Any advice anyone gives you, whether it is a seller, a realtor, a neighbor or even a friend, you need to question and I mean really question. The people who blindly trust their realtor to represent their interest are the ones most likely to be “taken”.
That’s not to say there aren’t some very good and ethical realtors out there. But the system is very corrupt, and there are lots of rather shader realtors who are very good at giving the impression they are extremely ethical, when in fact they are not. Sad but true.
More to the point of your question, ethical agents are just as likely to be discount realtors as full price realtors. Likewise a discount realtor is just as likely to give honest advice as a full price realtor. So, if getting advice from your realtor is something you want, (which I think you should be very cautious about) then I don’t see any disadvantage to a discount broker.
If you’re looking for a discount realtor, I believe that SD Realtor (who posts here regularly) does give discounts, but you’d need to check with him for specifics.
XBoxBoy
May 4, 2009 at 10:56 AM #393239Participant[quote=sushilover]does it make sense to hire a discount realtor? Are they giving advise on the properties?[/quote]
Sushilover,
Before you make the biggest purchase of your life, please understand something. Unfortunately, the way realtors are paid causes lots of conflicts of interest, and lots of bad incentives to the realtors to mislead you. So, it really falls on you to learn about the neighborhood you are interested in, the current state of the market, and a host of other issues. Any advice anyone gives you, whether it is a seller, a realtor, a neighbor or even a friend, you need to question and I mean really question. The people who blindly trust their realtor to represent their interest are the ones most likely to be “taken”.
That’s not to say there aren’t some very good and ethical realtors out there. But the system is very corrupt, and there are lots of rather shader realtors who are very good at giving the impression they are extremely ethical, when in fact they are not. Sad but true.
More to the point of your question, ethical agents are just as likely to be discount realtors as full price realtors. Likewise a discount realtor is just as likely to give honest advice as a full price realtor. So, if getting advice from your realtor is something you want, (which I think you should be very cautious about) then I don’t see any disadvantage to a discount broker.
If you’re looking for a discount realtor, I believe that SD Realtor (who posts here regularly) does give discounts, but you’d need to check with him for specifics.
XBoxBoy
May 4, 2009 at 1:48 PM #392690Anonymous
GuestWhat “discount”? Buyers don’t pay commission. Sellers pay commission to get their house sold.
The way it works is that the discount realtor takes the X% commission promised to them, and gives a large portion of it to the buyer. Getting 2% of the value of the home back in the form of cash, or cut out of the principal is quite a bit of money to leave on the table just because the “seller pays for the commission” It at least shouldn’t be a decision that gets taken lightly, especially since the information asymmetry between realtors and buyers is much less than it used to be.
May 4, 2009 at 1:48 PM #392954GuestWhat “discount”? Buyers don’t pay commission. Sellers pay commission to get their house sold.
The way it works is that the discount realtor takes the X% commission promised to them, and gives a large portion of it to the buyer. Getting 2% of the value of the home back in the form of cash, or cut out of the principal is quite a bit of money to leave on the table just because the “seller pays for the commission” It at least shouldn’t be a decision that gets taken lightly, especially since the information asymmetry between realtors and buyers is much less than it used to be.
May 4, 2009 at 1:48 PM #393166GuestWhat “discount”? Buyers don’t pay commission. Sellers pay commission to get their house sold.
The way it works is that the discount realtor takes the X% commission promised to them, and gives a large portion of it to the buyer. Getting 2% of the value of the home back in the form of cash, or cut out of the principal is quite a bit of money to leave on the table just because the “seller pays for the commission” It at least shouldn’t be a decision that gets taken lightly, especially since the information asymmetry between realtors and buyers is much less than it used to be.
May 4, 2009 at 1:48 PM #393217GuestWhat “discount”? Buyers don’t pay commission. Sellers pay commission to get their house sold.
The way it works is that the discount realtor takes the X% commission promised to them, and gives a large portion of it to the buyer. Getting 2% of the value of the home back in the form of cash, or cut out of the principal is quite a bit of money to leave on the table just because the “seller pays for the commission” It at least shouldn’t be a decision that gets taken lightly, especially since the information asymmetry between realtors and buyers is much less than it used to be.
May 4, 2009 at 1:48 PM #393359GuestWhat “discount”? Buyers don’t pay commission. Sellers pay commission to get their house sold.
The way it works is that the discount realtor takes the X% commission promised to them, and gives a large portion of it to the buyer. Getting 2% of the value of the home back in the form of cash, or cut out of the principal is quite a bit of money to leave on the table just because the “seller pays for the commission” It at least shouldn’t be a decision that gets taken lightly, especially since the information asymmetry between realtors and buyers is much less than it used to be.
May 4, 2009 at 2:05 PM #392710urbanrealtor
ParticipantI recommend focusing on a good realtor rather than one who can kick you a few thousand dollars. If you can get both, then all the better.
I strongly recommend asking for references (recent ones) as well as a very clear explanation (in writing) with regards to what is being offered and what limitations there are.
If somebody posts that they do discounts and does not post specifics, you should make sure that getting that clarification is an immediate priority.
House Rebate has a good piece about what they offer with their discounts as well as when they do and do not apply.
http://sandiego.houserebate.com/about/buying.aspMay 4, 2009 at 2:05 PM #392974ParticipantI recommend focusing on a good realtor rather than one who can kick you a few thousand dollars. If you can get both, then all the better.
I strongly recommend asking for references (recent ones) as well as a very clear explanation (in writing) with regards to what is being offered and what limitations there are.
If somebody posts that they do discounts and does not post specifics, you should make sure that getting that clarification is an immediate priority.
House Rebate has a good piece about what they offer with their discounts as well as when they do and do not apply.
http://sandiego.houserebate.com/about/buying.aspMay 4, 2009 at 2:05 PM #393186ParticipantI recommend focusing on a good realtor rather than one who can kick you a few thousand dollars. If you can get both, then all the better.
I strongly recommend asking for references (recent ones) as well as a very clear explanation (in writing) with regards to what is being offered and what limitations there are.
If somebody posts that they do discounts and does not post specifics, you should make sure that getting that clarification is an immediate priority.
House Rebate has a good piece about what they offer with their discounts as well as when they do and do not apply.
http://sandiego.houserebate.com/about/buying.aspMay 4, 2009 at 2:05 PM #393237ParticipantI recommend focusing on a good realtor rather than one who can kick you a few thousand dollars. If you can get both, then all the better.
I strongly recommend asking for references (recent ones) as well as a very clear explanation (in writing) with regards to what is being offered and what limitations there are.
If somebody posts that they do discounts and does not post specifics, you should make sure that getting that clarification is an immediate priority.
House Rebate has a good piece about what they offer with their discounts as well as when they do and do not apply.
http://sandiego.houserebate.com/about/buying.asp -
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