Do we need realtors?

[Duck]

1% is surely the future. The problem is that NAR has seemingly made it so hard to do a transaction while 95% of the forms are not required by law.

With the internet anyone with an IQ above 20 can make a good purchase. The bigger problem is listings where the Realtor mafia won’t show FSBO’s including those that will pay a CBB. It will change in the next 10 years.

You don’t think a Google/Zillow partnership has their sites in it? As a NAR member I am ashamed.

[jan777]

why would a buyer have to ask their realtor to show them new development homes? Shouldn’t this be a standard question the realtor would ask their client? Seems like a know brainer question to me.

[jan777]

why would a buyer have to ask their realtor to show them new development homes? Shouldn’t this be a standard question the realtor would ask their client? Seems like a know brainer question to me.

[newguy]

Sorry SDR, I didn’t see your question (it was buried within all the other posts). But I never specifically asked to see new homes. I was relatively new to the area so whatever the RE agent wanted to show me, is whatever I saw. After that one meeting with the RE agent, I made several trips in the area to see for myself and to familiarize myself with the area.

[newguy]

Sorry SDR, I didn’t see your question (it was buried within all the other posts). But I never specifically asked to see new homes. I was relatively new to the area so whatever the RE agent wanted to show me, is whatever I saw. After that one meeting with the RE agent, I made several trips in the area to see for myself and to familiarize myself with the area.

[newguy]

jan777

that was my thought originally. Maybe RE agents have a different outlook on things? My guess is that most new homes don’t offer the 3% commission while old homes do. So RE agents make more off of selling old homes than new homes.

anyways, I appreciate the feedback from SDR, sdr and rustico (as well as any other RE agents). I didn’t want to make this thread a complete bashing thread (although it’s becoming like that). Guess I was more naive than I thought. I’m sure in the end, I will be bit in the butt as I get an RE agent when it comes time to sell =P

[newguy]

jan777

that was my thought originally. Maybe RE agents have a different outlook on things? My guess is that most new homes don’t offer the 3% commission while old homes do. So RE agents make more off of selling old homes than new homes.

anyways, I appreciate the feedback from SDR, sdr and rustico (as well as any other RE agents). I didn’t want to make this thread a complete bashing thread (although it’s becoming like that). Guess I was more naive than I thought. I’m sure in the end, I will be bit in the butt as I get an RE agent when it comes time to sell =P

[KIBU]

Very informative thread. Thanks especially to the ones discussing about how to get around the agent if in case one doesn’t want to. I knew already how helpful agents can be. What I was interested in this thread was what alternative does one has and how practical it could be. Thanks for all your flood of interesting info!!!

[KIBU]

Very informative thread. Thanks especially to the ones discussing about how to get around the agent if in case one doesn’t want to. I knew already how helpful agents can be. What I was interested in this thread was what alternative does one has and how practical it could be. Thanks for all your flood of interesting info!!!

[SD Realtor]

newguy no worries at all.

Your realtor should have definitely asked you if you were interested in new homes or resale homes. However, after awhile it may have been helpful for you to tell him/her that you wanted to see new developments as well.

jan777 yeah I do agree with you that the realtor should have asked from the beginning if newguy was interested in new homes verses resale.

As far as commissions go, most of the new home developments (at least down here in SD) offer just as much if not more then resellers. This has been a fairly recent change because as little as a year and a half ago, the majority of the builders didn’t offer any commissions. As soon as the market started to tank they changed their tune.

rus I am sorry for not being explicit in my description. When you described the way you work you were very accurate and I was not.

To answer your questions, yes I list for 1% and encourage sellers to offer at least 2.5% as a coop (for the buyers agent). So yes at the end of escrow I get 1% and that is it. What I do not provide are open houses, print advertising, caravans (unless it is a high end home) and mailers. If people want that extra advertising I will provide it for them and they can pay for it. Transaction coordination is $395.

******

Again, just to clarify there are ample choices out there. Help U Sell is one of them. Powayseller and others have used them. They advertise a fixed fee to sell your home however the fixed fee actually varies with the sales price of your home. In reality it is about 1.2-1.5% on the listing side and they to encourage sellers to offer a 2.5% coop commission. I Pay 1 is no longer in the game. Jeff Karchin will list your home on the MLS for a matter of a few hundred dollars. That is about all he does but that gets sellers exposure. Forsalebyowner.com is another alternative for people who want to FSBO.

The degree of service people offer varies of course. Rus I am not sure what sources of advertising you do, open houses, print ads, etc but I don’t do any of that. For 1% I could never afford it. The full service guys do of course provide all of that. I contend it is pricing and the condition of your home that will determine if it will sell. Help U Sell franchises offer different service plans (if I recall correctly) regarding open houses and stuff like that. The large brokerages have such a sheer number of agents that I believe this is where their major advantage lies. However, there is a listing 4 homes away from me that is a Prudential home and has been on the market for several months now. IMO it was simply not priced correctly.

[SD Realtor]

newguy no worries at all.

Your realtor should have definitely asked you if you were interested in new homes or resale homes. However, after awhile it may have been helpful for you to tell him/her that you wanted to see new developments as well.

jan777 yeah I do agree with you that the realtor should have asked from the beginning if newguy was interested in new homes verses resale.

As far as commissions go, most of the new home developments (at least down here in SD) offer just as much if not more then resellers. This has been a fairly recent change because as little as a year and a half ago, the majority of the builders didn’t offer any commissions. As soon as the market started to tank they changed their tune.

rus I am sorry for not being explicit in my description. When you described the way you work you were very accurate and I was not.

To answer your questions, yes I list for 1% and encourage sellers to offer at least 2.5% as a coop (for the buyers agent). So yes at the end of escrow I get 1% and that is it. What I do not provide are open houses, print advertising, caravans (unless it is a high end home) and mailers. If people want that extra advertising I will provide it for them and they can pay for it. Transaction coordination is $395.

******

Again, just to clarify there are ample choices out there. Help U Sell is one of them. Powayseller and others have used them. They advertise a fixed fee to sell your home however the fixed fee actually varies with the sales price of your home. In reality it is about 1.2-1.5% on the listing side and they to encourage sellers to offer a 2.5% coop commission. I Pay 1 is no longer in the game. Jeff Karchin will list your home on the MLS for a matter of a few hundred dollars. That is about all he does but that gets sellers exposure. Forsalebyowner.com is another alternative for people who want to FSBO.

The degree of service people offer varies of course. Rus I am not sure what sources of advertising you do, open houses, print ads, etc but I don’t do any of that. For 1% I could never afford it. The full service guys do of course provide all of that. I contend it is pricing and the condition of your home that will determine if it will sell. Help U Sell franchises offer different service plans (if I recall correctly) regarding open houses and stuff like that. The large brokerages have such a sheer number of agents that I believe this is where their major advantage lies. However, there is a listing 4 homes away from me that is a Prudential home and has been on the market for several months now. IMO it was simply not priced correctly.

[NotCranky]

Thanks SDR,
I could easily see a system that gets commissions down to 2% or so. Something like a consultancy/transaction outlet, where after buyers and sellers have used some of the sources available to have a meeting of the minds on purchase price, the nitty gritty gets done up and the deal gets closed. Call it “House Transfer Mediation Center.” Want to start one?

[NotCranky]

Thanks SDR,
I could easily see a system that gets commissions down to 2% or so. Something like a consultancy/transaction outlet, where after buyers and sellers have used some of the sources available to have a meeting of the minds on purchase price, the nitty gritty gets done up and the deal gets closed. Call it “House Transfer Mediation Center.” Want to start one?

[SD Realtor]

I would do it with you in a heartbeat….

Like I said though, we would still need to keep our dayjobs…

SD Realtor

[SD Realtor]

I would do it with you in a heartbeat….

Like I said though, we would still need to keep our dayjobs…

SD Realtor

[Author]

Posts