On a separate note: if you were the seller, would you take a lower clean offer (no financing, money sitting in the bank, no inspection clause and ready to close asap) versus an offer that is higher but has all the standard conditions on it?
confused about realtor games...
- Thread starter suzuki2000
- Start date
Snobike Mike
Banned
Depends on the gap. Remember, any condition not waived is an excuse for the purchaser to get out of the deal.
To often in real estate people want to dicker over another grand in purchase/sale price instead of just getting on with your life
MarcosSantiago
Well-known member
It could be a great job. But the career potential is less and less, as the internet takes us in a crazy ride to God-knows-where.
It is like travel agents, do we still need them? Most people travelling don't need an agent... they book everything online. Only a few VIP people in very specifc situations need the travel agent... and when they do, they want only the top travel agents...
The internet is not done with real state. Still a lot of changes coming up.
I'm sure it can be a great career for people that keep at it. I think the cost of entry is approximately $5k. My cousin started the route (after getting laid off 2x within 3 years or so). She's been at it for maybe 6 months, and as far as I know has sold 1 or 2 homes. Both to family though. I think her monthly costs / fees to the brokerage are high but I don't ask for details.
suzuki2000
Well-known member
in perspective $10k is really only about $50 per month over a 25 year mortgage, is this a deal breaker? depends on your situation
Agent value is evolving. i dont think 5% is a lot of cases is warranted given many realtors are simply paper administrators above all else. People have access to too much info on their own now
The margins are coming down, 3% vs 5% is getting more usual in my market, but that's 3% on 700k and up. Making a living off 189k houses in Hamilton industrial section would be tough at a low margin. My prime reason for working with an agent ( same guy usually) is "pocket sales" , really attractive properties and great deals often don't even make it to the market, the listing agent has people looking for homes in that area. It changes hands and a sign never goes up. If you don't have an agent, you'll never know. For those that want to get into real estate, take notice that in most areas there are many agents and a half dozen move all the properties. And you want to be a listing agent, then any smuck on MLS can sell the place and you still get a cut, listings are good. And network, join a service club and sports teams.
Dresden
Well-known member
I'm still not even sure just what the hell a real estate "agent" actually do?
This is outside of:
- driving you around town and showing you listings (I can do this myself)
- putting an ad up for your place if you are selling (i can do this myself)
- showing people around your open house and explaining everything (i can do this a heck of a lot better myself)
Aside from the BS market advice given.. what exactly do they ACTUALLY do? Like real work... like let's say the lawyer who reads through your entire agreement and looks for discrepancies and makes you aware of them..
This is outside of:
- driving you around town and showing you listings (I can do this myself)
- putting an ad up for your place if you are selling (i can do this myself)
- showing people around your open house and explaining everything (i can do this a heck of a lot better myself)
Aside from the BS market advice given.. what exactly do they ACTUALLY do? Like real work... like let's say the lawyer who reads through your entire agreement and looks for discrepancies and makes you aware of them..
Practise true capitalism in an artificially constructed price rigged system?
what do they do? Vet out idiot offers so you dont have to deal with them. Organize an open house for all the other agents to see the property (they may have buyers looking at your area) , move your paperwork around so you aren't driving to lawyers offices, spend stupid hours talking to people that may or may not buy, prequalify buyers so you don't have to show to people that couldn't possibly afford your home. When your buying (in an area that's new to you) may know of future concerns in the area ( application for cell tower pending across the street) , know about goofy bylaws (cant put trailer boat in driveway) , and if schools are good, shopping nearby, lots of stuff. By all means thousands of people buy/sell and are ok with the efforts involved, I have done it. I'm also see a level of value in an agent. There sure are some good ones and some boneheads, I've met both.
Not necessarily. It's all in the offer---when you make one with the agent, you put in there what you want for him. If the selling is private or One Percent, you shouldn't put too much in there to be successful. As far as I understand, for my area it's pretty much standard the offer to ask for 2-2.5% for your agent. Like everything else in the offer, that's something you "offer" and can be counter-offered. One Percent sellers give 3,000 flat, non-negotiable. Separately, as a buyer, you hire your agent legally, and sign a document which states something like "if an offer or counter-offer is accepted, you agree to fill in the agent's commission up to X%". So yeah---I always thought the buyer doesn't pay anything, but it's not like that. You can end up with out of pocket expenses for the agent's commission, or your offer might not be so good in the eyes of the seller due to the requested amount for your agent's commission.
I don't think many people go into real estate for a reason other than money. Therefore it has become a greedfest. The agents and brokers are interested in making money, not making anyone else happy.
The attitude may be different in smaller towns but in the mighty TO a bad reputation doesn't mean much. It's too easy to get lost in the crowd.
There are laws but you can't legislate ethics.
The attitude may be different in smaller towns but in the mighty TO a bad reputation doesn't mean much. It's too easy to get lost in the crowd.
There are laws but you can't legislate ethics.
Of course it's not free for the buyer....everyone always says 'the seller pays'.....well who's money is being provided to the seller....the buyers! Every dollar you spend is a chunk to the commission. Not sure why people keep stating that it's free for buyers.
Kri$han
Well-known member
I'm sorry to read all this overwhelming response about horrible real-estate agents, so let me offer the only rebuttal: I've had great experiences with agents in the past to buy my 1st house.
House was in Barrie and I had been looking for 3 months prior to contacting an agent. I found a guy that helped me purchase it for about 3% under-list price which I was really happy with. He had shown me about 10 other properties, none of which were as good of a deal as this house. He understood what I wanted, what my budget was and what was available - which is what you need.
My brother just sold his house in Mississauga 2 DAYS after listing with an open house. They got $15k more than their asking price because their agent (hired gun, no previous experience with her) played the situation very well and got the highest purchase price they could.
Selling a property on your own can be awesome, but expect to spend a good amount of time to do so - professional photos, research other selling properties in the area, have ALL information about the property and existing mortgage ready to present to the buyer's lawyer, and make sure the place is staged well for open-houses. Also realize that if there's no selling agent, buying agents will boycott you - so you will only find people looking to buy directly from a seller... which makes no sense because when you're buying a house, the use of an agent is free (the seller pays both agents). but as always DIY is usually more satisfying and can save you LOTS of money.
http://propertyguys.com/ is another good site for doing so
House was in Barrie and I had been looking for 3 months prior to contacting an agent. I found a guy that helped me purchase it for about 3% under-list price which I was really happy with. He had shown me about 10 other properties, none of which were as good of a deal as this house. He understood what I wanted, what my budget was and what was available - which is what you need.
My brother just sold his house in Mississauga 2 DAYS after listing with an open house. They got $15k more than their asking price because their agent (hired gun, no previous experience with her) played the situation very well and got the highest purchase price they could.
Selling a property on your own can be awesome, but expect to spend a good amount of time to do so - professional photos, research other selling properties in the area, have ALL information about the property and existing mortgage ready to present to the buyer's lawyer, and make sure the place is staged well for open-houses. Also realize that if there's no selling agent, buying agents will boycott you - so you will only find people looking to buy directly from a seller... which makes no sense because when you're buying a house, the use of an agent is free (the seller pays both agents). but as always DIY is usually more satisfying and can save you LOTS of money.
http://propertyguys.com/ is another good site for doing so
Kri$han
Well-known member
wait, what?
Lets say I sell you a house for $500k. You will pay $500k, and I will only get back $470k (instead of the full $500k), because 3% of the sale goes to the selling agent, and 3% goes to the buying agent... therefore I (as the seller) lose cash to the agents.
Well you wouldn't lose 30k because no one in their right mind would pay 6% commission on a house...would they?
You sell for 500k...I pay 500k...you get 475k assuming 3% comm. The difference of $15k goes to the agent, and he/she splits with the buying agent.
Now take this to a nice and cozy area....800k....that same 3% now cost you 24k.
In this market agents OFTEN come up with "fathom offers" in order to get their seller the most bang for the buck. think about it if your house is listed at $300,000, someone makes an offer of $280,000, (with standard conditions). Your agent then tells the buyers agent we have multiple offers, would you like to "improve" your offer... hint hint MORE money. They may or may not actually have more offers. so the buyer wants the house, so they up their offer to say $290,000. Your happy your agent "got" you $10,000 more, Of course that also means they made $250 more for themselves, (not a lot but IT is more money)..If they don't have any other offers and the buyers dfon't move then they "magically" accept your offer, they still have the sale and nothing was lost...lol
Yes to the above you would see $470,000 MINUS of course legal fees, and other associated costs...
Yes to the above you would see $470,000 MINUS of course legal fees, and other associated costs...
Well if they are "told" by the agent this is std rate and they didn't know better but most agents start at 5% and you have to tell them it would be 3% MAX.
As far as I know from my experience, agent's don't just "tell" there's other offers. Those are registered in their system available to all agents, so every registered offer is in fact a real offer, not just made up verbally. That said, nothing prevents them from making up such fake offers with relatives and stuff...but if I'm the seller, very easily I can screw somebody up (whoever agreed to put their name on the fake offer)...and accept it.
Kri$han
Well-known member
The percentage stated was an example - it varies based on the price of the house itself. Realtors will take a larger percentage on cheaper homes, and a smaller one on more expensive homes (and as mentioned before, it can be negotiable, unless the realtor works for an agency).
Regardless, we were debating who actually pays money to the agents, and now you've even said it was the seller. Cheers
