6% no more? - Page 5

Red Pear Realty

Sponsor

3:29p, 3/21/24

Tex117 said:
Red Pear Realty said:
Serious question. Are you just trolling or do you not know how to spell "realtor"? The former, I'm ok with. But the latter, especially with your commentary on intelligence, I'm not sure I can handle.
Yall are so inconsequential, I don't care to bother.

What do you mean, "you people"?

Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty

Tex117

3:31p, 3/21/24

In reply to Red Pear Realty

Red Pear Realty said:
Tex117 said:
Red Pear Realty said:
Serious question. Are you just trolling or do you not know how to spell "realtor"? The former, I'm ok with. But the latter, especially with your commentary on intelligence, I'm not sure I can handle.
Yall are so inconsequential, I don't care to bother.

What do you mean, "you people"?

Red Pear Realty

Sponsor

3:33p, 3/21/24

In reply to Tex117

That's exactly what I mean

Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty

Tex117

3:57p, 3/21/24

In reply to Red Pear Realty

Red Pear Realty said:
That's exactly what I mean

I know you do good work. When you get pages of pages of justification that Houston Lee gave, its hard not to dunk on it.

Houston Lee

4:22p, 3/21/24

In reply to Tex117

Tex117 said:
Red Pear Realty said:
That's exactly what I mean
I know you do good work. When you get pages of pages of justification that Houston Lee gave, its hard not to dunk on it.

You know. Excuse me for trying to educate people on this thread with facts and maybe some behind the scenes truths. There is a lot of misinformation and ignorance about Realtors out there and a lot of misinformation about the NAR settlement and what it means.

I suppose some people just think they know it all already.

Sea Speed

4:39p, 3/21/24

In reply to Tex117

Tex117 said:
Red Pear Realty said:
Serious question. Are you just trolling or do you not know how to spell "realtor"? The former, I'm ok with. But the latter, especially with your commentary on intelligence, I'm not sure I can handle.
Yall are so inconsequential, I don't care to bother.

Doooooooosshh chiiiiiiiilllls

Medaggie

5:29p, 3/21/24

Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

swimmerbabe11

5:59p, 3/21/24

In reply to Medaggie

realtors do this often. You can easily tell when a realtor is pushing for their client to go to another builder who has a BTSA or a higher commission. That's why I said that you'll get a lot more new construction "experts" because builders will keep paying the commissions, btsa, bonuses, etc.

Buyers listening to this news might be more likely to ask for realtors to contribute though. Already more buyers are asking for extra deals if they don't use a realtor.

btw, for you lovely realtors, I do have two homes with a 5% commission if you want to steer your clients my way

Red Pear Jack

Sponsor

6:00p, 3/21/24

I've said this a couple times regarding this topic on other threads but please bring that same energy when you're buying a house and paying out of pocket for your agent or not being represented at all.

These transaction costs have been baked in the comps that were used to conclude to your offer price.

Theoretically that price should be lowered if the fee is not the full freight or reduced or paid out of pocket.

I have a feeling people won't which is so ironic given the disdain for realtors on this thread.

htxag09

6:01p, 3/21/24

In reply to Medaggie

Medaggie said:
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

Don't get me wrong….I agree in premise. We bought and listed (didn't sell because we rented) with red pear and this scenario is definitely a negative on the industry, imo.

But, to be fair, where's the line. Your duty to the client is kind of BS. I mean, what if the seller says they'll only pay .5% commission? Have to draw a line somewhere, imo. My duty to my company goes away if they say they're gonna pay me 50%+ less….

Or….just be upfront about it. "I'd love to help you buy a house, I'll show you any house but my minimum commission would be 2%. So I'll show you a house with 1.5% but you need to make up that gap, ok?"

swimmerbabe11

6:13p, 3/21/24

In reply to Red Pear Jack

I deal with homebuyers all the time that don't have realtors. (I've been inspired to calculate the ratio tomorrow if anyone is interested)
It's not at all uncommon for someone not using a realtor to ask if they can get an additional discount since we don't have to pay the realtor commission. So that mindset is out there and I'm guessing it will be more common with all this in the news.

Red Pear Jack

Sponsor

6:18p, 3/21/24

In reply to swimmerbabe11

Let's hope so, and for the record I'm all for it. It's only fair.

It'll be a couple years before enough comps get in the system at reduced rates (if that's what ends up happening) for things to get murky.

swimmerbabe11

6:22p, 3/21/24

In reply to htxag09

I mean, on the other side of that coin, isn't that where it gets kinda funky that your duty is to your client, but your paycheck is signed by the opposing side? And you negotiating for a lower price ends up in you being paid less?

I love the gap scenario. .. assuming you have had your client sign a representation agreement, and you won't represent them for that house because of the commission difference.. if they won't pay it, does that mean they can't buy that house? Like could they sign fine.. contact the listing agent for a showing, then go under contract without violating the representation agreement? ( I genuinely don't know)

swimmerbabe11

6:35p, 3/21/24

In reply to Red Pear Jack

well, the technical answer is "no" and because I pay for the procuring cause...and mostly, because new construction gets the reputation of trying to cut realtors out of deals all the time. (which is silly, I don't care if your realtor is on the deal. worst case is they are a nuisance and truly some are absolute lifesavers)

Accidentally putting a realtor out of a deal is a nightmare. So I don't want to tell a prospect that yes, I'll contribute or cut the price by the realtor commission % and them go running to drop their realtor ..then I'm dealing with an angry realtor...oh they are in a big brokerage and now I'm blacklisted from that group? no thanks.

so the technical answer IS no, but, if I'm working out a deal and I know I need a little more in closing costs or free upgrades or whatever, I have more wiggle with no realtor.

(because of buyer misinformation, i have accidentally kept realtors from going on a deal twice. both funny stories and warnings for realtors if anyone wants to hear them)

htxag09

7:15p, 3/21/24

In reply to swimmerbabe11

swimmerbabe11 said:
I mean, on the other side of that coin, isn't that where it gets kinda funky that your duty is to your client, but your paycheck is signed by the opposing side? And you negotiating for a lower price ends up in you being paid less?

I love the gap scenario. .. assuming you have had your client sign a representation agreement, and you won't represent them for that house because of the commission difference.. if they won't pay it, does that mean they can't buy that house? Like could they sign fine.. contact the listing agent for a showing, then go under contract without violating the representation agreement? ( I genuinely don't know)

Agree with this 100%. Definitely a conflict of interest when the point person for the negotiation's highest potential motivations are simply getting a deal done and maximizing price so maximizing commission. Neither of those are necessarily good for their client.

For example, when we listed our house, in the first offer we had the realtor said, "please let me know if you want to counter." Sorry, this is bs. I negotiate for a living and this is like elementary level do not do.

But, if we're being honest, isn't the entirety of it being a % based system kind of silly? I mean are they really doing 3x the work on a $1mm house vs a $330k house? Depending on the clients, they could be doing 3x the work on the $300k house.

ATM9000

2:45a, 3/22/24

In reply to Red Pear Realty

Red Pear Realty said:
While we are on the subject of overpriced services, why is title insurance so expensive? Why couldn't we put chain of title on the Blockchain and charge almost nothing for it?

I'm sure yesterday was a peak day and he had 4 closings to do. I'm sure he will be back today to explain this.

Red Pear Felipe

Sponsor

6:18a, 3/22/24

In reply to Medaggie

Medaggie said:
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

This x eleventy billion

This is the MAIN reason I joined Red Pear Realty. I wanted to join a brokerage where my clients came first regardless of the commission. My wife and I bought our home in 2020 during the pandemic. My brother-in-law referred me his agent that has done countless amounts of business for his family. Well, my wife and I found our house that we currently live in on Realtor.com. So as you know, I had to call our realtor to set up an appointment. We really liked the house from the pictures, but once we got here, we loved it. It was our dream home. It had everything we asked for.

Fast forward to me becoming a realtor, I looked up our current house on the MLS and saw that the seller (agent) had offered only 1% to the buyer agent. I told my wife this, and she said, "Don't you remember what the agent said when we first got here?" My wife told me that as we walked in, our agent at the time said, "Don't get overly excited about the house. This may not be the house for you." Well, we didn't listen to her, and we love our new home now.

My duties will always be for my clients first. I don't care if my client wants to buy a home that only offers 1% to the buyer's side. If my client loves it, I'm going to do everything I can to make sure we get the deal done.

Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty Austin Monthly

ecoag80

6:34a, 3/22/24

In reply to Ed007

Ed007 said:
I own a title company, and I do 700 closings per year. This is word salad. Realtors do not do an abundance of work. That's a fact. Open a door and fill out a simple form. Y'all have done a great job convincing the market of all this though. I'll give you that. You are all salesmen. I'd say a realtor's worth on a deal is probably $300-$500.

I would like to know the name of your title company, care to share?

Houston Lee

8:16a, 3/22/24

In reply to Medaggie

Medaggie said:
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

Even if I have a written agreement with my buyer that says I will get 3%, I will always show a property that is offering less if they want to see it. I have done several deals at less than 3% on the buying side.

One thing we will do with our clients is that if they sell with us (3% to us as a listing agent) and buy with us (3% to us a the buyers agent) we will give them back 1%, which is usually around $5K.

We have done deals on the selling side taking only 1% so the sellers would have enough equity to put a chunk down to buy their next house. We have helped clients paint and fix their house to get it ready to put on the market. We have taken money out of our commission due, to offer as a seller credit to the buyer so both parties would be happy with some needed repairs.

Medaggie

1:49p, 3/22/24

In reply to Houston Lee

You sound like a good RE agent and do the right thing. I am sure most on here are in the same group.

I feel there are another group who became a RE agent b/c it was a low barrier and they thought it as a side hustle. Buy/Sell 5 homes a year, and make 100K who brings little to the table.

I had such a RE agent. Made 30K off me then wouldn't even budge on her 3% when the seller RE agent agreed to cut his commission to bridge half the gap. If I remember right, we were 5K off. Seller agent put in 2500. The place was 350K and she would have pocketed 10K. Didn't budge and let the deal expire. This was on top of her making 30K about 1 month before off a sale that she spent little time on.

Houston Lee

2:15p, 3/22/24

In reply to Medaggie

Medaggie said:
You sound like a good RE agent and do the right thing. I am sure most on here are in the same group.

I feel there are another group who became a RE agent b/c it was a low barrier and they thought it as a side hustle. Buy/Sell 5 homes a year, and make 100K who brings little to the table.

I had such a RE agent. Made 30K off me then wouldn't even budge on her 3% when the seller RE agent agreed to cut his commission to bridge half the gap. If I remember right, we were 5K off. Seller agent put in 2500. The place was 350K and she would have pocketed 10K. Didn't budge and let the deal expire. This was on top of her making 30K about 1 month before off a sale that she spent little time on.

Thanks! I spent 25 years in the Oil & Gas industry and ended as VP of Sales and Marketing for many years. My wife is 20+ years as a successful Realtor and I have had my license on the side for 5+ years. Last year I got tired of the ups and downs of the Oil and Gas job yo-yo and started Real Estate with her full time. In 2023 we had our best year ever as a husband and wife team and quadrupled our sales and GCI from 2022. I would like to think it was because of me doing it full time, but my wife is the superstar! I love my job as a Realtor better than anything I did in the corporate world because we get to help people find their dream home. Their home buying/selling experience is the biggest and most important financial thing they will do in their lives.

if you think about it, where you live has a huge impact on your life and the life of your family. The place you live determines where you will go to school and who you and your kids will meet as friends and maybe even a future spouse. I truly believe that you live in the home that you are "supposed to be in" for that period of your life. We have had listings that would sit for no reason. But, then the right person comes along and the deal sails through. The house was waiting for that buyer!

Jason_InfinityRoofer

9:57a, 3/23/24

In reply to Medaggie

Medaggie said:
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

I don't like that Q and A. It implies that Realtors are straight up enethical. When I had clients I, and ANY Realtor, was obligated to show them properties that suited them. Period. Realtors are amongst the most ethical people I've had to deal with. You guys all realize that there are some pretty basic standards required to even obtain a license right?

Anyway, I don't do real estate anymore obviously, but much like my current profession with roofing, there is never a shortage of people that don't understand what the professional brings to the table. And like my current profession, it's "probably fine until it isn't". The unfortunate thing is that no one knows they need a good pro until they need a good pro. The catch is that if they have a good pro, they won't see the difficulty because that professional has already foreseen the train wreck coming a mile away and avoided behind the scenes. That's what makes a good realtor a good realtor.

https://linqapp.com/jason_duke --- JasonDuke@InfinityRoofer.com --- https://infinityrooferjason.blogspot.com/

Tex117

11:05a, 3/28/24

In reply to Jason_InfinityRoofer

Jason_InfinityRoofer said:
Medaggie said:
Q. If I'm selling, can I offer less than a 3% commission to the buyer's agent?

A. Absolutely. The unfortunate reality though, is that your home won't get the same attention that it would if you offered buyers agents 3%. It could either take longer to sell, or may not sell at all.

I have heard this also which is what gives me a bad view of some RE agents. Why would an agent not want to show their client a property that fits their criteria just because they were offered "only" 2%? Isn't their duty to their client or is it to maximize the 3%? Also if it is only "2%", isn't it still a great transaction if the property is 1M? Is it better to not show the deal but wait for a 500k place bc it's 3%?

If you have a client your duty should be first to the client and not what commission is offered.

.

Realtors are amongst the most ethical people I've had to deal with. You guys all realize that there are some pretty basic standards required to even obtain a license right?

Captain Winky

2:18p, 3/28/24

In reply to Tex117

You sure are engaging a lot with a group that you find inconsequential.

themissinglink

4:03p, 3/28/24

Just curious for the realtors on here.

1) Were you previously requiring buyers to sign agreements prior to showing a house?
1a) If yes, did the agreement specify the commissions you charged or did you just rely on receiving a % from the listing commission?
2) With the change now requiring agents to have an agreement prior to showing a house, do you anticipate negotiating the buyer agent commission %/fee with this agreement?

aggiebq03+

9:29a, 3/29/24

In reply to Captain Winky

Captain Winky said:
You sure are engaging a lot with a group that you find inconsequential.

I wouldn't call the group taking on average a 6% cut of all residential real estate transactions in the USA "inconsequential".

jja79

9:38a, 3/29/24

In reply to aggiebq03+

How much do other professionals add to the cost of goods and services we use everyday or more often than every 7-10 yeats? You might even be one of them.

bubblesthechimp

10:08a, 3/29/24

In reply to jja79

This reads as if real estate agents are responsible for creating the goods

They aren't

jja79

10:30a, 3/29/24

In reply to bubblesthechimp

It's a service.

aggiebq03+

10:32a, 3/29/24

In reply to jja79

jja79 said:
How much do other professionals add to the cost of goods and services we use everyday or more often than every 7-10 yeats? You might even be one of them.

I'm open to fix overpaying in other areas as well. No problem with that, the big one would be government. But this is the RE board.

SquareOne07

10:48a, 3/29/24

Man…so much pent up rage towards real estate agents.

For folks so mad at them for using expertise to make a buck, I hope what you do for a living is so novel that nobody else could ever do it on their own.

Tex117

3:17p, 3/29/24

In reply to Captain Winky

Captain Winky said:
You sure are engaging a lot with a group that you find inconsequential.

Quantarius

11:31p, 3/29/24

In reply to cheeky

cheeky said:
I don't mind saying this at all. The 6% realtor commission is the biggest fleecing of America in our history outside deficit spending.

ever heard of plaintiffs attorneys getting 40%...

1939

9:38a, 3/31/24

In reply to BrazosDog02

BrazosDog02 said:
1939 said:
6% in this day and age is highway robbery. Lowest amount of work for agents ever and record home prices that have far exceeded inflation.

Lol. Everyone wants someone to work for free. My customers do as well. Here's a tip, if you have the knowledge and tools to do it yourself, you should. If I'm not making much money on a deal, I'm not working that hard for it and I'm charging you for busy work.

Didn't we just have a thread here from a guy that had the same opinion and ended up buying a property that he found out a decade later he doesn't actually own or something? Bet he wishes he'd spent that 3%, eh?

Guess what buddy, agents aren't going title work. Even in an FSBO you are going to have to go through a title company for closing, and the required title insurance would cover the situation you described.

Red Pear Realty

Sponsor

9:47a, 3/31/24

In reply to 1939

Title insurance isn't required and the gentleman at the center of that story said he didn't get it.

Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty