confused about realtor games...

[mimico_polak]

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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).

When I talked to some agents about selling/buying a larger property I actually had them tell me..."If it's over $(put in number here) then the commission % goes UP!" So now your 3% for a 500k home can become 5% for a 1,000,000 home.

Justification = Because it's a more expensive home/property/land/whatever the agent needs to work harder so their commission should go up accordingly.

Don't know if that's the case or not, because I can't afford homes in that bracket.

 

[suzuki2000]

The percentage is a game.

Cost of listing at $100k and $10M is the same.

The marketing, ads, etc. maybe costs more if they take them out....

I guess with the more expensive properties you have to have the more exclusive car lease, so they have higher overhead?

I completely agree that the more expensive the house there are less potential buyers, but really the % commission is relative. In fact it should go down after the first agreed so many thousand as the seller receives diminishing return at a certain point.

I guess there can be bold agents who try and push for more, but that doesn't mean anyone will buy in to it.

 

[LiNK666]

Welcome to North America where the lazy and incompetent want more faster and easier. Not willing to work for it but have a strong feeling of entitlement to it.

 

[skapan]

Stick with it, could be a while before the right person walks in the door. Just have it clear in your head what you will accept, and be ready to push off the stuff below it. Don't let the agents muddy the water, don't forget for them a fast sale at a low price is good because they can move on to other low sales and make more fast. It's great that you did your market research and know the value of your property, that really helps.

 

[Justind97]

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.

That is incorrect. No offer is made public ( to realtors) until the sale is firm and final. Offers are not registered. An offer document is filled out, but nothing is put into any system until a sale has been finalized. If an offer was put into a system and available to other agents, what would stop an agent from sniping properties?

When an offer had been made, and accepted, then there's a flag in the profile that states there's an offer, possibly with conditions. Realtors will and usually put in a first refusal clause to stop others from coming in and sniping once the offer had been accepted

 

[cors]

That is incorrect. No offer is made public ( to realtors) until the sale is firm and final. Offers are not registered. An offer document is filled out, but nothing is put into any system until a sale has been finalized. If an offer was put into a system and available to other agents, what would stop an agent from sniping properties?

When an offer had been made, and accepted, then there's a flag in the profile that states there's an offer, possibly with conditions. Realtors will and usually put in a first refusal clause to stop others from coming in and sniping once the offer had been accepted

I know for a fact that you are wrong. Offers are indeed registered in their system. When they are accepted, then the condition of the listing changes too. I did not say the agents have information in the system regarding the specific conditions of the offers, just that there are such. My agent could tell me for a few houses just this month how many offers are coming (when they heard the word), and then when they were officially made (a.k.a. registered in the system). When an offer is accepted, then it's too late. Example: we had a house we were thinking about, and in the listing it said "offers will be reviewed on Feb 1". We saw the house a week before that and were thinking about it. One day before that there were 3 offers registered in the system. Agent learned the "presentation" is at 2pm on Feb 1. In the morning of Feb 1---5 more offers appeared in the system.

 

[SunnY S]

Like I said earlier, agents are lazy lazy lazy (at least the ones in my area)

From my experiences, very few register an offer any more, because they don't want to expend the time and energy.

Before the internet, agents used to have to drive back and forth from the office and between buyer and seller with paper work, and to negotiate.

Now, its usually just a verbal back and forth between buyer and seller until a close number is reached. then an offer is drawn up and registered.

All an agent has to do these days, is sit in front of his laptop in his underwear, and fire off emails to buyers and sellers and to the office to type up an official offer.

 

[mimico_polak]

Like I said earlier, agents are lazy lazy lazy (at least the ones in my area)

From my experiences, very few register an offer any more, because they don't want to expend the time and energy.

Before the internet, agents used to have to drive back and forth from the office and between buyer and seller with paper work, and to negotiate.

Now, its usually just a verbal back and forth between buyer and seller until a close number is reached. then an offer is drawn up and registered.

All an agent has to do these days, is sit in front of his laptop in his underwear, and fire off emails to buyers and sellers and to the office to type up an official offer.

Yup a lot of them are lazy, and most don't survive the first 2 years. Everyone thinks it's easy money. But considering the competition out there (useless or not) I think that there's definitely a shot at a good spot.

What's the old saying...20% of the agents make 80% of the deals/money...I'd say it's true. But these guys have been around for 20-30 years, and now they cherry pick the properties and buy/flip them themselves.

Just for fun I checked out a few realtor sites....you'll find 3-4 realtors with 100+ listings, and the remaining 100 realtors with less than 10/each...you can see who's in the game for real, and who's there to have fun and thought it's easy money.

 

[crankcall]

Like I said earlier, agents are lazy lazy lazy (at least the ones in my area)

From my experiences, very few register an offer any more, because they don't want to expend the time and energy.

Before the internet, agents used to have to drive back and forth from the office and between buyer and seller with paper work, and to negotiate.

Now, its usually just a verbal back and forth between buyer and seller until a close number is reached. then an offer is drawn up and registered.

All an agent has to do these days, is sit in front of his laptop in his underwear, and fire off emails to buyers and sellers and to the office to type up an official offer.

Really, when using an agent I've never had a verbal back and forth between them. Its always been a written offer and a CHEQUE attached. Usually 10-15k. I do get emails and updates, but offers are always couriered , they need a signature. I am seeing some now that will accept a scanned document, but not all. I'll agree that there are some useless agents, I walked out of an office once because the agent I had been directed to was not capable of sensible conversation. Its not as simple as banging out a couple emails and selling a listing.

 

[nearace]

My agent made enough money in 2011 he took the next year off.

 

[inreb]

My agent made enough money in 2011 he took the next year off.

Out of every dollar you earn how much can you actually set aside for savings? 6-7 cents? So your property goes up in value, real estate goon takes big commission. To pay him out of your savings you'd have to work 2yrs. to cover his 2 or 3 weeks. But it doesn't feel so bad because it's coming out of the house price.

 

[Justind97]

I know for a fact that you are wrong. Offers are indeed registered in their system. When they are accepted, then the condition of the listing changes too. I did not say the agents have information in the system regarding the specific conditions of the offers, just that there are such. My agent could tell me for a few houses just this month how many offers are coming (when they heard the word), and then when they were officially made (a.k.a. registered in the system). When an offer is accepted, then it's too late. Example: we had a house we were thinking about, and in the listing it said "offers will be reviewed on Feb 1". We saw the house a week before that and were thinking about it. One day before that there were 3 offers registered in the system. Agent learned the "presentation" is at 2pm on Feb 1. In the morning of Feb 1---5 more offers appeared in the system.

Well, my brother is a realtor and there is no system that realtors can look on to see how many offers have been made. If there is, please do enlighten me and other agents I know. Name it so they can use it too...

 

[cors]

Well, my brother is a realtor and there is no system that realtors can look on to see how many offers have been made. If there is, please do enlighten me and other agents I know. Name it so they can use it too...

I don't know what it is called, but it's the same system in which you can view the sale history of any property by address (e.g. sold on DD/MM/YY for XXX,XXX with asking YYY,YYY). Can your brother view that stuff? It might be a ring of realtor firms here in Hamilton agreeing to participate and share info like that through that system?! <---that I don't know for sure, just guessing.

 

[suzuki2000]

I think that is just the registered sales history. Doesn't track any offers, just final sales information. Rejected offers or any that do not make it to a final sale are not recorded.

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