Realtor Commission

[NotCranky]

SDR why is Cabal’s house losing 26%-56% anually? This is from your house losing 1% every 1-2 weeks?Based on yor recent posts, I thought you were rather bullish? I don’t believe he even mentioned his sub-market, just price range, maybe I missed it?Can I have that damn pebble now?

Cabal, With the sale you are disappointed with, did you pay 4% total or just to the listing agent?
There are a lot of ways to do things. I guess you don’t want to do a FSBO. You could try a modified FSBO. This might be something like getting an offer yourself and having an agent handle the acceptance,counter if any, and transaction. I did this for someone, as a complete rookie, and it worked out fine. The buyer paid their own agent a flat fee too. I caught the guy trying to put a commission in, to himself,from the seller though.I think I got paid $1500 on a 225k condo.The woman, my friend’s mother, put up a post-it in the some common area of the complex.You never know…

What do you think is a fair flat fee for an average listing effort of a 1.5M house? I basically think MLS plus price sells houses when going the realtor route. Many realtors disagree, of course.Yes, some competence is mandatory.

If you are going to offer a low commission or flat fee you might have to convince someone that you are very willing to gravitate toward the best reasonable offer instead of,for example, chasing the market down for a few years. If the equity situation is too tight to target a decent meeting of the minds on what the best reasonable offer is, that might be problematic. If you have room to be creative, just try some things.

[mike92104]

I understand the reasons behind hiring a strong agent at a fair price, but my question is this: Does it take more time or more effort to sell a 1.5 mil house or a 250k house? I can see why a flat fee can be very attractive and make sense to buyers/seller alike. Does the check get heavier when you add a few zeros? How much of a flat fee would a realtor need to consider it worth his time and put in as much effort as he would for a percentage?

[mike92104]

I understand the reasons behind hiring a strong agent at a fair price, but my question is this: Does it take more time or more effort to sell a 1.5 mil house or a 250k house? I can see why a flat fee can be very attractive and make sense to buyers/seller alike. Does the check get heavier when you add a few zeros? How much of a flat fee would a realtor need to consider it worth his time and put in as much effort as he would for a percentage?

[mike92104]

I understand the reasons behind hiring a strong agent at a fair price, but my question is this: Does it take more time or more effort to sell a 1.5 mil house or a 250k house? I can see why a flat fee can be very attractive and make sense to buyers/seller alike. Does the check get heavier when you add a few zeros? How much of a flat fee would a realtor need to consider it worth his time and put in as much effort as he would for a percentage?

[mike92104]

I understand the reasons behind hiring a strong agent at a fair price, but my question is this: Does it take more time or more effort to sell a 1.5 mil house or a 250k house? I can see why a flat fee can be very attractive and make sense to buyers/seller alike. Does the check get heavier when you add a few zeros? How much of a flat fee would a realtor need to consider it worth his time and put in as much effort as he would for a percentage?

[mike92104]

I understand the reasons behind hiring a strong agent at a fair price, but my question is this: Does it take more time or more effort to sell a 1.5 mil house or a 250k house? I can see why a flat fee can be very attractive and make sense to buyers/seller alike. Does the check get heavier when you add a few zeros? How much of a flat fee would a realtor need to consider it worth his time and put in as much effort as he would for a percentage?

[sdrealtor]

Rus,
I beleive a 1.5M house will lose 10 to 20% of it value this year. Most of that will come in the next 6 months unlike lower priced homes (i.e. 600 to 1.2M homes) which have already given up more value (and should have a decent Spring IMO) than those at the higher prices (which are in for great pain this Spring). That’s 2 to 4% per month over the next 6 months which gets you the 10 to 20% decline i think is coming in his range. That and a buck will get you a cup of Joe.

MLS plus price makes up most of what it takes to get an offer and as I said any tool in the shed can do that. The competence in handling the transaction is what makes a difference. A lousy agent can have your property in and out of failed 3 to 4 week escrows causing you to lose valuable time. A good agent understands the time element and does what it takes to get the sale closed asap. Time is your worst enemy in this kind of market.

[sdrealtor]

Rus,
I beleive a 1.5M house will lose 10 to 20% of it value this year. Most of that will come in the next 6 months unlike lower priced homes (i.e. 600 to 1.2M homes) which have already given up more value (and should have a decent Spring IMO) than those at the higher prices (which are in for great pain this Spring). That’s 2 to 4% per month over the next 6 months which gets you the 10 to 20% decline i think is coming in his range. That and a buck will get you a cup of Joe.

MLS plus price makes up most of what it takes to get an offer and as I said any tool in the shed can do that. The competence in handling the transaction is what makes a difference. A lousy agent can have your property in and out of failed 3 to 4 week escrows causing you to lose valuable time. A good agent understands the time element and does what it takes to get the sale closed asap. Time is your worst enemy in this kind of market.

[sdrealtor]

Rus,
I beleive a 1.5M house will lose 10 to 20% of it value this year. Most of that will come in the next 6 months unlike lower priced homes (i.e. 600 to 1.2M homes) which have already given up more value (and should have a decent Spring IMO) than those at the higher prices (which are in for great pain this Spring). That’s 2 to 4% per month over the next 6 months which gets you the 10 to 20% decline i think is coming in his range. That and a buck will get you a cup of Joe.

MLS plus price makes up most of what it takes to get an offer and as I said any tool in the shed can do that. The competence in handling the transaction is what makes a difference. A lousy agent can have your property in and out of failed 3 to 4 week escrows causing you to lose valuable time. A good agent understands the time element and does what it takes to get the sale closed asap. Time is your worst enemy in this kind of market.

[sdrealtor]

Rus,
I beleive a 1.5M house will lose 10 to 20% of it value this year. Most of that will come in the next 6 months unlike lower priced homes (i.e. 600 to 1.2M homes) which have already given up more value (and should have a decent Spring IMO) than those at the higher prices (which are in for great pain this Spring). That’s 2 to 4% per month over the next 6 months which gets you the 10 to 20% decline i think is coming in his range. That and a buck will get you a cup of Joe.

MLS plus price makes up most of what it takes to get an offer and as I said any tool in the shed can do that. The competence in handling the transaction is what makes a difference. A lousy agent can have your property in and out of failed 3 to 4 week escrows causing you to lose valuable time. A good agent understands the time element and does what it takes to get the sale closed asap. Time is your worst enemy in this kind of market.

[sdrealtor]

Rus,
I beleive a 1.5M house will lose 10 to 20% of it value this year. Most of that will come in the next 6 months unlike lower priced homes (i.e. 600 to 1.2M homes) which have already given up more value (and should have a decent Spring IMO) than those at the higher prices (which are in for great pain this Spring). That’s 2 to 4% per month over the next 6 months which gets you the 10 to 20% decline i think is coming in his range. That and a buck will get you a cup of Joe.

MLS plus price makes up most of what it takes to get an offer and as I said any tool in the shed can do that. The competence in handling the transaction is what makes a difference. A lousy agent can have your property in and out of failed 3 to 4 week escrows causing you to lose valuable time. A good agent understands the time element and does what it takes to get the sale closed asap. Time is your worst enemy in this kind of market.

[sdrealtor]

Mike
The vast majority of top quality agents dont work in the flat fee environment and are not able to accept one. How much they would accept is irrelavent because they arent able to accept flat fees.

The house esmith is in escrow on is a good example. The listing agent was lousy (maybe one of the worst I have encountered) and prevented the sale from being completed much sooner at a higher price. Ultimately that worked to esmith’s advantage not the bank that will bear the brunt of his incompetence in this case.

The additional effort it takes to sell a 1.5M house is greatly due to the sellers ego who add marketing costs because they want to see their home advertised in the UT, Dream Homes and other useless publications.

[sdrealtor]

Mike
The vast majority of top quality agents dont work in the flat fee environment and are not able to accept one. How much they would accept is irrelavent because they arent able to accept flat fees.

The house esmith is in escrow on is a good example. The listing agent was lousy (maybe one of the worst I have encountered) and prevented the sale from being completed much sooner at a higher price. Ultimately that worked to esmith’s advantage not the bank that will bear the brunt of his incompetence in this case.

The additional effort it takes to sell a 1.5M house is greatly due to the sellers ego who add marketing costs because they want to see their home advertised in the UT, Dream Homes and other useless publications.

[sdrealtor]

Mike
The vast majority of top quality agents dont work in the flat fee environment and are not able to accept one. How much they would accept is irrelavent because they arent able to accept flat fees.

The house esmith is in escrow on is a good example. The listing agent was lousy (maybe one of the worst I have encountered) and prevented the sale from being completed much sooner at a higher price. Ultimately that worked to esmith’s advantage not the bank that will bear the brunt of his incompetence in this case.

The additional effort it takes to sell a 1.5M house is greatly due to the sellers ego who add marketing costs because they want to see their home advertised in the UT, Dream Homes and other useless publications.

[sdrealtor]

Mike
The vast majority of top quality agents dont work in the flat fee environment and are not able to accept one. How much they would accept is irrelavent because they arent able to accept flat fees.

The house esmith is in escrow on is a good example. The listing agent was lousy (maybe one of the worst I have encountered) and prevented the sale from being completed much sooner at a higher price. Ultimately that worked to esmith’s advantage not the bank that will bear the brunt of his incompetence in this case.

The additional effort it takes to sell a 1.5M house is greatly due to the sellers ego who add marketing costs because they want to see their home advertised in the UT, Dream Homes and other useless publications.

[Author]

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