Or they show one house, buyer makes offer that is accepted and buyers agents may make 3% commission on $450k house, $13k for a small effort. Those transactions are balanced with the agent that shows 30 house and doesn't get sale closed.
I realize that realtors provide some kind of service.
What I don't understand is, that they get a commission based on the house price. Why is opening the door of a multi million dollar home more work than on a $250,000 house?
And it presents a conflict of interest for the buyer's agent. They're supposed to try and get the buyer the lowest price possible, but they get paid in direct proportion to the price. 🤔
The seller’s agent isn’t incentivized to sell your home for the highest price though. They make money by selling your home quickly and then moving on to their next project. Spending an extra three months of work selling your home for $30,000 more only nets them an extra $900. It’s not worth it to them.
I have sold 3 houses myself FSBO and we bought them new with builder so no realtor on that side of the transaction either.
When you sell FSBO you get a peek into the sleeze of the realtor game. . You will be bombarded with realtor solicitations trying to scare you that you are making a huge mistake. You will never get top dollar. But that is only part of it.
1. The MLS doesn’t want your home on their list. Why? Because you are not contributing to the cartel. Who gives a damn if a potential buyer wants your home. The realtors don’t want them to see it.
2. Because you have a nice home, then the buyers want to see it so the realtor will call you and ask of you will pay them commission. Otherwise they won’t let their buyer buy your home! Is this realtor helping their client get the home if their dreams or is this realtor looking out for themselves and to hell with the client?
Also, you find both buyer and seller realtors in cahoots. They both represent the buyer (usually a big dollar flipper). They collude to talk a desperate seller to go way low for a specific buyer. And they lie saying there is no other interest. After the transaction some money is exchanged so everyone get paid in this scheme to steal a home way below market value.
I have sold 3 houses myself FSBO and we bought them new with builder so no realtor on that side of the transaction either.
When you sell FSBO you get a peek into the sleeze of the realtor game. . You will be bombarded with realtor solicitations trying to scare you that you are making a huge mistake. You will never get top dollar. But that is only part of it.
1. The MLS doesn’t want your home on their list. Why? Because you are not contributing to the cartel. Who gives a damn if a potential buyer wants your home. The realtors don’t want them to see it.
2. Because you have a nice home, then the buyers want to see it so the realtor will call you and ask of you will pay them commission. Otherwise they won’t let their buyer buy your home! Is this realtor helping their client get the home if their dreams or is this realtor looking out for themselves and to hell with the client?
Also, you find both buyer and seller realtors in cahoots. They both represent the buyer (usually a big dollar flipper). They collude to talk a desperate seller to go way low for a specific buyer. And they lie saying there is no other interest. After the transaction some money is exchanged so everyone get paid in this scheme to steal a home way below market value.
It's interesting to hear you say all this because I've gotten to know some realtors and the profession over the last few years (my GF's best friend is an agent), and the profession seems VERY slimy to me, in general. Not every single agent is this way, but in general, they are some of the fakest people you will ever meet in your life and are basically true professionals at being fake and acting certain ways, and this can and does often creep into their personal lives and how they show up just when going around in life. I have seen and heard a couple kind of sociopathic type things also...
After getting a feel for the profession and the people who work in it, I've been very put off by both and would personally avoid realtors both when buying and selling homes and in general life to be honest.
My big beef with the realtor industry is simply because they rig the US home selling game to capture huge commissions and exclude anyone else that might want to deviate from their commission structure or way of selling a home.
This lawsuit was brought about because the Realtor industry forbid realtors from individually negotiating to be realtors at lower commission rates. Or forbidding listings because they were not willing to pay both the buyer and seller. In the real world that is monopolistic collusion. And that is why the lost.
They lie and say they are justified because they bring a unique expertise to the transaction to protect both the buyer and seller. It is BS because all you need to do is hire a lawyer to review the paperwork to protect yourself. In fact, the realtors encourage you to do that anyway. So what the hell do they bring to the transaction that causes them to make $80K for one home?
My big beef with the realtor industry is simply because they rig the US home selling game to capture huge commissions and exclude anyone else that might want to deviate from their commission structure or way of selling a home.
This lawsuit was brought about because the Realtor industry forbid realtors from individually negotiating to be realtors at lower commission rates. Or forbidding listings because they were not willing to pay both the buyer and seller. In the real world that is monopolistic collusion. And that is why the lost.
They lie and say they are justified because they bring a unique expertise to the transaction to protect both the buyer and seller. It is BS because all you need to do is hire a lawyer to review the paperwork to protect yourself. In fact, the realtors encourage you to do that anyway. So what the hell do they bring to the transaction that causes them to make $80K for one home?
The realtors I've known are not actually doing much most of the time, and most of the work they DO do is nothing I would consider technical. There's a reason basically anyone can become an agent and the stereotypical realtor is simply some very attractive woman with either a HS diploma or some junk college degree who spends a lot of time on her appearance. There is an enormous mismatch between how much they get paid and how much they actually do/services they provide. Society would be better with fewer realtors.
Being a realtor is feast or famine. They only get paid when a house completes closing. If you hadn’t noticed, there aren’t a lot of homes for sale these days.
If someone shows you 10 homes and has 50 calls/emails with you, they get paid nothing unless you close on a house. Even then, they paid just for the one house for all that effort.
And they know the steps needed to complete the deal. You can find a house your own, but you don’t buy houses often. Or sell often. It’s worth it for the seller to pay for professional help representing both sides.
They don’t make much considering they are on call all the time and work weekends.
