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Does a realty company make a difference?
Posted by: seller ()
Date: April 13, 2008 10:33AM

Hi, our house has been on the market since last year with the same company. We realize the market is slow. Just wondering if a Realty Co. makes a difference as we're thinking of switching -- Our realtors are nice enough and we don't have any big complaints about them. Our current realty company isn't one of the bigger ones but is local to our area. Is it correct to think that a Remaxx/L&F would prefer "their own" listing first (and thus provide more visibility) then other listing companies (especially in slow times?).

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 13, 2008 12:16PM

A house sold using a Realtor will sell on average at a price 16% higher than someone selling it themselves (For Sale By Owner). Not my stats, came from 2006 NAR (National Association of Realtors) article.

Your comment about a "big" company selling their listing first is crap. In this market agents will sell any listing they can, whether it's from thier own company or another. (Read your paperwork regarding agency and how it works).

Are you getting any traffic? If not, time to drop the price. Your house is only worth what someone will pay for it.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 13, 2008 03:04PM

Good Speller Wrote:
-------------------------------------------------------
> A house sold using a Realtor will sell on average
> at a price 16% higher than someone selling it
> themselves (For Sale By Owner). Not my stats,
> came from 2006 NAR (National Association of
> Realtors) article.


too easy ... "they would say that wouldn't they"

the whole industry is an unnecessary leech on the working public

6% to sell a house (30k on a 500k house) - give me a break!

- in a sellers market the selling realtor does nothing
- in a buyers market the buying agent does nothing

I had an example where listing realtor mislead potential purchasers from other buying agents that a home was under offer, when it really wasn't according to the owner, so that he could tout it around his own buyers and pocket 6%

the situation only remains because its never in a buyer's interest not to have an agent even if they get no benefit (because the seller pays the cash and the debt gets bundled into the mortgage) and buying agents won't buy something they don't get commission for

when realtors complain that its not a well paid job - that's because there are too many of them and there are never enough sales to go around because they spawn in high markets

its a scam which should be broken up by the courts

this is what the internet was invented for!

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Re: Does a realty company make a difference?
Posted by: WashingToneLocian ()
Date: April 13, 2008 04:52PM

seller Wrote:
-------------------------------------------------------
> Hi, our house has been on the market since last
> year with the same company. We realize the market
> is slow. Just wondering if a Realty Co. makes a
> difference as we're thinking of switching -- Our
> realtors are nice enough and we don't have any big
> complaints about them. Our current realty company
> isn't one of the bigger ones but is local to our
> area. Is it correct to think that a Remaxx/L&F
> would prefer "their own" listing first (and thus
> provide more visibility) then other listing
> companies (especially in slow times?).


It comes down to the agent. Find the right agent through referrals.

Also, most people can't sell their homes because they are asking too much and won't listen to what their agent is telling them. If your agent is telling you to sell at price "A" but you think it is worth price "B" regardless of its actual value in the marketplace, you won't sell it. Either, listen to your agent regarding price or take it off the market until the market gets better.

Nobody cares how good of care you took of your house. Price is determined by 1. number of bedrooms 2. number of baths 3. last time the kitchen and bathrooms were renovated and 4. school district. Nobody cares about the french doors in your office or the spanish tile in your laundry room or blah, blah, blah. Everything else is curb appeal and does nothing to the actual price of your house.

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Re: Does a realty company make a difference?
Posted by: BeenThere ()
Date: April 13, 2008 05:41PM

Just a tip. I once tried to sell a condo myself and learned a few lessons.
First, when you run an ad, be sure and specifically state, "NO AGENTS".
Otherwise, you will get 100's of phone calls from agents wanting to list
your property. Be prepared to meet clowns who have taken a $39.95
course on "How to Get Rich in Real Estate". They ususally only look for
"motivated sellers" (read - getting divorced and in a world of $*it like
I was at the time) They are easy to deal with once you identify them. (throw
them out) Get a good assesor, set a price and stay with it unless you
have no traffic.

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Re: Does a realty company make a difference?
Posted by: formerhick76 ()
Date: April 13, 2008 05:41PM

I tried to sell my townhouse FSBO in fall of 2002. I'd make appointments to show, there'd be a no-show. After a few weeks of that and no offers my wife made me get an agent. I also had zero idea where to market my house...

Someone who's pretty astute might be able to get through the process w/o a buyer's agent.

I think location/walkable neighborhood matters with regard to price, too, at least for some buyers. A place a few blocks from Old Town Alexandria will get a higher price, as will places in the urban villages of Arlington. Not sure where in FFX this would be a factor (I suppose near 123 in Vienna/Fairfax, some parts near Skyline, Reston Town Center.)

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Re: Does a realty company make a difference?
Posted by: whatever leeches ()
Date: April 13, 2008 07:26PM

You get what you pay for Leeches.... smucks like you who think they are professionals when they are messing with the largest personal investment they will ever make get what they deserve... LESS!

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Re: Does a realty company make a difference?
Posted by: coffin ()
Date: April 13, 2008 08:02PM

If it ain't moving, it's overpriced, period. People are still buying houses.

Case in point, the house across from me. Nice house, the guy had it painted inside and out, listed it at 485K (would have been 600K+ during the boom).

Bang, it sold in a week and a half. I'll be watching to see what it went for, but I'll bet it was close to the asking price.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 13, 2008 08:26PM

whatever leeches Wrote:
-------------------------------------------------------
> You get what you pay for Leeches.... smucks like
> you who think they are professionals when they are
> messing with the largest personal investment they
> will ever make get what they deserve... LESS!


rubbish

I've been on both sides of FSBO and its the way to go - you just have to know what you're doing

giving some snake-oil salesman best part of a year's salary for doing sweet FA is a mugs game

most countries do quite well on 1% commission or less - 6% is scam - its also a drain on the market which exacerbates troughs and reduces liquidity (few people can afford a 6% bath during a down market and hence stay put)

when did a realtor last do 20-60k's work selling a house? Especially in a county with the best educated workforce in the US, many of whom run complex deals and projects every day and do pricing and negotiation for a living.

That's a years salary for many people in FFX - hardly a bargain and not really justifiable when the internet has restructured pretty much every other industry

Realtors are the last remaining dinosaurs of an ancient society where your butter was wrapped up in paper by the smiling grocer. They've been propped up by the debt bubble which drove the price bubble and ruined so many lives.

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Re: Does a realty company make a difference?
Posted by: MILF ()
Date: April 13, 2008 09:05PM

Yes switching agencies makes a huge difference. So do realtor bonuses, and agents that can talk other agents (from the same company) into bringing their buyers in for a sale. Its all about the agent, lower budget agencies in this area with less agents aren't nearly as good as the bigger Weichert, L&F, etc. Also if your agent is new or doesn't have a ton of experience under his/her belt, that makes a huge difference as well.

My home was on the mkt 6 mos, I switched agents and had a ratified contract in 2 days (at our asking price).

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Re: Does a realty company make a difference?
Posted by: J. Beam ()
Date: April 13, 2008 09:39PM

The homes in Burke seem to be selling. The ones I have noticied on the market for some time are just priced like it was during the boom. I guess the owners dont mind letting it set on the market and meanwhile pay property tax and insurance on it.

One I know of has set empty for over a year. It was some Arab guy and he just wouldnt budge on the price. About 50k too much at least, way overpriced.

The best hint I can give is to check the asking price against the public record on the owner. If they have had the house twenty years and already made a bundle they will be more willing to negotiate.

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Re: Does a realty company make a difference?
Posted by: Radiophile ()
Date: April 13, 2008 10:41PM

To answer clearly the original question: No, the listing agent of a house makes little difference from company to company or individual to individual.

All Realtors in this area list properties for sale through the Multiple Listing Service (MLS) for around $400 listing fee. All Realtors have immediate access to the listing and the print out of the MLS listing is what Realtors give the prospects.

The listing Aagent may do little things like put an ad in the paper. This is done to attract people to the property who dont have a real estate agent - tus they can market there services to these people.

A listing agent may sit in an open house on a saturday or sunday, put up some signs, send out some postcards. But that is pretty much what the listing agent does.

Traditionally, the 6% commission gets split 4 ways: 1.5% goesto the listing agent, 1.5% to the listing agents broker (Long & Foster, Remax etc). 1.5% goes to the buyers real estate agent and 1.5% goes to the buyers real estate broker.

Some discount agencies work a little differently and some agencies like Remax "rent out the desk" in the office and the percentage will vary a little. But above is the traditional model.

Long & Foster has advocated in Maryland and Virginia to up there fees to 7%.

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 13, 2008 11:57PM

leeches Wrote:
-------------------------------------------------------
> the whole industry is an unnecessary leech on the
> working public
>
> 6% to sell a house (30k on a 500k house) - give me
> a break!

The listing agent doesn't get all 6 %, you retard. It gets split between the brokers for each side. The brokers then pay their agents. The sellers don't pay an agent, they pay the broker.


> - in a sellers market the selling realtor does
> nothing
> - in a buyers market the buying agent does
> nothing

If a buyers agent does nothing, why the fuck is there so much inventory?

> I had an example where listing realtor mislead
> potential purchasers from other buying agents
> that a home was under offer, when it really wasn't
> according to the owner, so that he could tout it
> around his own buyers and pocket 6%

A listing agent can't pocket 6% on a deal by representing the buyer and the seller unless it is approved for in writing by both parties, it's called disclosed dual agency. You really shouldn't be writing a bunch of shit when you have no idea what the fuck you are talking about.

> the situation only remains because its never in a
> buyer's interest not to have an agent even if they
> get no benefit (because the seller pays the cash
> and the debt gets bundled into the mortgage) and
> buying agents won't buy something they don't get
> commission for

Right...do you flip burgers for free? Why the fuck would an agent take buyers out, negotiate a deal, and ensure the execution of the contract for free?

> when realtors complain that its not a well paid
> job - that's because there are too many of them
> and there are never enough sales to go around
> because they spawn in high markets

Realtors who actually have business and sell houses don't complain at all. It's the fucking idiots who jumped into real estate when the market was hot and didn't learn how to market a house or run their business properly who complain.

> its a scam which should be broken up by the
> courts
>
> this is what the internet was invented for!

Yeah, so idiots like you can spout off about subjects you know NOTHING about.

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 14, 2008 12:00AM

Radiophile Wrote:
-------------------------------------------------------
> Long & Foster has advocated in Maryland and
> Virginia to up there fees to 7%.

There is no cap on what the commission can be. If someone agrees to pay an agent 14% it is enforceable (stupid, yet enforceable).

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Re: Does a realty company make a difference?
Posted by: SE ()
Date: April 14, 2008 12:23PM

J. Beam Wrote:
-------------------------------------------------------

>
> The best hint I can give is to check the asking
> price against the public record on the owner. If
> they have had the house twenty years and already
> made a bundle they will be more willing to
> negotiate.


This is great advice J. Beam. I tell people the same thing. If someone has owned the house for years and paid $250 and is selling for $550, you know what are have to work with in negotiation. It will also save you a ton of time if the person bought for $550 and is selling for way below that...instead of going back and forth with counteroffers you know in advance they probably aren't going to budge.

Although- a good agent should do that work for their client if they want a sale, IMO :-)

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 14, 2008 01:23PM

Good Speller Wrote:
-------------------------------------------------------
> leeches Wrote:
> --------------------------------------------------


Idiot boy- not getting your income during the real-estate bust?


Taking your points one by one and speaking VERY SLOOOWLY SO THAT YOU CAN UNDERSTAND....

<<1. The listing agent doesn't get all 6 %, you retard. It gets split between the brokers for each side. The brokers then pay their agents. The sellers don't pay an agent, they pay the broker. >>

Of course, but who gives a damn who gets the money? Its 6% out of the publics pocket for a task which costs 1% in most other countries.

Of course the sell side doesn't get all 6% but why does anyone or any group have to get 6%?

The inexplicable inefficiencies of the real estate industry have been propped up by bubble and cheap credit

worse than that, all of these sucessive 6%'s get bundled into the housing bubble

say a house gets sold 3 times at 6% over a 10 year period - that's about 20% of excess costs that have to be built into the price over time or sucked out of people's current accounts

which is one of the reasons why we have boom and bust in the market




<<2. If a buyers agent does nothing, why the fuck is there so much inventory? >>

Because its a recession and were going through a credit crisis - or don't you read the papers?

People aren't buying at the current prices and in the current economic situation

What exactly does a buying agent do that justifies 3% - especially in FFX with homes at 250-1M? Most countries don't even have buying agents and they have perfectly functional markets - in fact, often more functional

why pay 30k for someone to drive you around and fill in $1k's worth of paperwork?


<<3. A listing agent can't pocket 6% on a deal by representing the buyer and the seller unless it is approved for in writing by both parties, it's called disclosed dual agency. You really shouldn't be writing a bunch of shit when you have no idea what the fuck you are talking about.>>

You really are an arrogant idiot

Of course the listing agent doesn't get all 6% on most occasions.

My point is that because the seller pays and buyers used to see high rises in property values, they didn't mind including the 6% in their mortgage. The world has moved on

<<4. Right...do you flip burgers for free? Why the fuck would an agent take buyers out, negotiate a deal, and ensure the execution of the contract for free?
>>

ok - lets think about this...

many other countries do this for 1% - why does the US industry need 6% to do this?

the fact that the spoils are shared out between a number of rats at the table does not make it okay or good public policy


<<5. Realtors who actually have business and sell houses don't complain at all. It's the fucking idiots who jumped into real estate when the market was hot and didn't learn how to market a house or run their business properly who complain. >>

And I give a damn why?

<<6. Yeah, so idiots like you can spout off about subjects you know NOTHING about.>>

oooookay




at the end of the day, the incentives of agents and buyers/sellers rarely align - agents need volumes, buyers/sellers need max/min prices

Time for regulation and a restructuring of the industry

(although not sure it deserves the title 'industry' - industries make stuff)

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Re: Does a realty company make a difference?
Posted by: formerhick76 ()
Date: April 14, 2008 03:59PM

leeches: do you have a citation for the 1% commission your claim is the norm in most countries? also, what else might be different in the process of buying a house in foreign countries that most americans find unpalatable?

i'll agree the existence of agents -- then brokers -- creates a two-tier system whose utility is somewhat doubtful, imo.

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Re: Does a realty company make a difference?
Posted by: Vampiro ()
Date: April 14, 2008 04:17PM

Real estate agents are a dime a dozen and do nothing for the sale or purchase of yoiur property. The processors do all the work and get paid a processing fee, a few hundred bucks give or take...while the agent walks with a huge fucking commission check and sits at home till they need another huge fucking commission check. They usually don't even know what needs to be done to sell or buy a piece of property. They think that once the contract is signed their job is done. And they certainly don't clean the fucking house they're selling..a la Annette Bening in American Beauty...I'd be surprised if they've even set foot on the property they're selling, they can get a processors to do anything they want.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 14, 2008 04:32PM

formerhick76 Wrote:
-------------------------------------------------------
> leeches: do you have a citation for the 1%
> commission your claim is the norm in most
> countries? also, what else might be different in
> the process of buying a house in foreign countries
> that most americans find unpalatable?
>
> i'll agree the existence of agents -- then brokers
> -- creates a two-tier system whose utility is
> somewhat doubtful, imo.

a good example is the UK where there are selling agents but no buying agents

'estate agents' are usually on the high street of every town, often next door to each other for ease of browsing, and have photos and details of all of the houses on their books, most offer web access and increasingly 3G mobile phone access (great when you're stood outside the house)

usually they will ask for about 2% but normally this can be negotiated down to 1-1.5%
e.g.
http://www.theadvisory.co.uk/estate-agents.php

a range on low cost, regulated full service companies are now charging 0.5-1.0% e.g http://www.halfapercent.com/

the UK does not have the equivalent of an MLS but that could be readily run by a regulated or non-profit


the current US system represents bad economics and adds friction to the market as well as transferring wealth away from the working public

having buying agents who are paid for as a hidden element of the purchase price by rolling into long-term debt provides perverse incentives and undesirable market behaviors

its an expensive anachronism

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Re: Does a realty company make a difference?
Posted by: whatever leeches ()
Date: April 15, 2008 07:13AM

Leeches,

I've grown tired of your rant. You ramble on and on about the 1% paid in other countries.... perhaps you should go there. Just don't bitch when you no longer have a right to vote. :-)

g'bye

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Re: Does a realty company make a difference?
Posted by: Are you being black balled? ()
Date: April 15, 2008 10:47AM

The term is call black balling. Realtors in the neighborhood of South Run in Fairfax Station do this. The only houses that sell are the ones are the ones listed with the agents who live there. I'm not sure how they do it but if you don't list with with a long time resident realtor they will ruin your chances of a FSBO or a sale with an "outsider". If any one knows how they do this please let us know. Thanks

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 15, 2008 11:36AM

Realtors are happy to sell FSBO's. The problem is, if the seller doesn't pay the commission, the buyer does.

If FSBO's realized the money and aggrivation they are actually saving themselves by using an agent, they would sell their houses quicker.

It's not 2004 anymore, and commissions are negotiable, stop being cheap.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 15, 2008 12:08PM

Good Speller Wrote:
-------------------------------------------------------
> Realtors are happy to sell FSBO's. The problem
> is, if the seller doesn't pay the commission, the
> buyer does.
>
> If FSBO's realized the money and aggrivation they
> are actually saving themselves by using an agent,
> they would sell their houses quicker.
>
> It's not 2004 anymore, and commissions are
> negotiable, stop being cheap.

so on the basis that 6% seems exorbitant and we know that other countries do this for 1-2%

what do you think should be the target for US sales?

currently we're paying for 3 things in the fees

- the marketplace (MRIS etc)
- the agents in the market (buying, selling etc)
- convenience

it makes no sense that while prices have doubled over the last few years, the % rates have stayed the same and hence absolute fees have risen substantially above inflation.

This suggests that there's a market problem - my sense is that the profitabiity is so high if you can acquire the clients that more realtors have been drawn in and hence the largess is spread more thinly reducing the opportunity for an aggressive set of companies to competitively reduce fees to capture market share - as you'd expect in a liquid market. In parallel, the way that buying agents are paid adds a 3% tax on the seller which is hard for them to remove and which the buyer has only a long-term reason to remove

This is made worse by the fact that many realtors buy and sell so win on both sides of the market and have no incentive to reduce margins on the other side

I believe the term is complex monopoly - which normally requires regulatory intervention to fix the market failure

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 15, 2008 01:24PM

The market failure has NOTHING to do with commission rates.

It has to do with retarded consumers who don't understand how thier loans work.

100% financing and interest only doesn't mean free, you are gonna have to pay the piper at some time.

The market is flooded with inventory because of consumers who failed to read their loan agreements or open their mouths and question what the hell they were signing.

Don't blame the market on broker commissions. That's retarded.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 15, 2008 02:23PM

Good Speller Wrote:
-------------------------------------------------------
> The market failure has NOTHING to do with
> commission rates.
>
> It has to do with retarded consumers who don't
> understand how thier loans work.
>
> 100% financing and interest only doesn't mean
> free, you are gonna have to pay the piper at some
> time.
>
> The market is flooded with inventory because of
> consumers who failed to read their loan agreements
> or open their mouths and question what the hell
> they were signing.
>
> Don't blame the market on broker commissions.
> That's retarded.

Clearly much of the responsibility for the crisis is lies with the poor financial education of many consumers and the inability of the financial institutions to manage the impact of debt bundling and collateralization. The impact on local latino communities with limited english suggests that there was also structural predatory lending.

However, I've argued for many years that high broker fees accelerate price declines and increase the depth of housing recessions.

Basically high fees look okay in a rising market, but in a flat market they become a 6% loss. The effect is to dry up liquidity very rapidly. As market liquidity stalls, feedback kicks in and you accelerate downwards. The intuition is that high fees also slow recovery as there is a disincentive to spend cash at the bottom of the market when it might go lower

At the end of the day, the public can't afford 6% in a largely flat or falling market unless they have no choice or are extremely cash rich. We're talking about 30-60k on a $500k-$1M home,

That plus the ratching effect that sucessive 6% fees being built into the cost of housing contributes to housing bubbles (e.g. 3 sets of 6% is about 20%)

In effect, bubbles inflate faster, stall more readily, drop further and stagnate longer

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Re: Does a realty company make a difference?
Posted by: Douchebags ()
Date: April 15, 2008 03:05PM

Real Estate agents beat off to themselves.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 15, 2008 06:36PM

Good Speller Wrote:
-------------------------------------------------------

> If FSBO's realized the money and aggrivation they
> are actually saving themselves by using an agent,
> they would sell their houses quicker.



my last FSBO was straightforward, we had competitive bids, received above the original asking price which was well researched and saved upwards of $20k


On the last buy, I found the house on MRIS, I used a buying agent because I was going to have 6% built in either way and the seller was in an exclusive with his selling agent already - basically it cost the seller 6% basically for a web listing and the buying agent did a couple of hours work if that


>
> It's not 2004 anymore, and commissions are
> negotiable, stop being cheap.


wow, that redefines cheap for me

I thought cheap was lunch at mcD - not 10's of thousands of dollars to a set of realtors for a web listing

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Re: Does a realty company make a difference?
Posted by: DeathofaSalesman ()
Date: April 15, 2008 10:19PM

It's all about the National Association of Realtors setting standard commissions to prevent real estate agents from truly competing against each other in price. Wouldn't there be a race to the bottom like in other commodity markets if there wasn't some gamesmanship going on? The NAR gets sued every few years by the DOJ for anti-trust issues but they always seem to be let off lightly. Last time was in 2005 iirc.

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Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 16, 2008 12:27AM

DeathofaSalesman Wrote:
-------------------------------------------------------
> It's all about the National Association of
> Realtors setting standard commissions to prevent
> real estate agents from truly competing against
> each other in price. Wouldn't there be a race to
> the bottom like in other commodity markets if
> there wasn't some gamesmanship going on? The NAR
> gets sued every few years by the DOJ for
> anti-trust issues but they always seem to be let
> off lightly. Last time was in 2005 iirc.


There is no "standard commission."

Commissions are negotiated by the broker (agent getting the listing) and the seller. Why is this so hard for you fucking idiots to understand?

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 16, 2008 12:41AM

Good Speller Wrote:
-------------------------------------------------------
> DeathofaSalesman Wrote:
> --------------------------------------------------
> -----
> > It's all about the National Association of
> > Realtors setting standard commissions to
> prevent
> > real estate agents from truly competing against
> > each other in price. Wouldn't there be a race
> to
> > the bottom like in other commodity markets if
> > there wasn't some gamesmanship going on? The
> NAR
> > gets sued every few years by the DOJ for
> > anti-trust issues but they always seem to be
> let
> > off lightly. Last time was in 2005 iirc.
>
>
> There is no "standard commission."
>
> Commissions are negotiated by the broker (agent
> getting the listing) and the seller. Why is this
> so hard for you fucking idiots to understand?


because in the real world its just not happening

as a seller, you have to assume that your buyer has an agent who is expecting 3% or else they won't play

as a buyer, you don't really care because its buried in long term debt and the seller has an agent who has built in their fee so you have to assume that 6% o whatever is built in - the seller has no power to negotiate the fee with the buyer

hence you get an unofficial 'standard commission'

perverse incentives

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Re: Does a realty company make a difference?
Posted by: Glen Gary ()
Date: April 16, 2008 12:45AM

Real estate agents make too much fucking money, PERIOD. They're worse than lawyers. At least an a lawyer has an education and can help you get out of trouble. Real estate agents will sell their mothers soul to the devil if they had a chance.

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Re: Does a realty company make a difference?
Posted by: Google ()
Date: April 16, 2008 03:11AM

Glen Gary Wrote:
-------------------------------------------------------
> Real estate agents make too much fucking money,
> PERIOD. They're worse than lawyers. At least an a
> lawyer has an education and can help you get out
> of trouble. Real estate agents will sell their
> mothers soul to the devil if they had a chance.


You Hire lawyers because they know more about the law then you do.. You hire agents because they know more then real estate then you do..

You can do everything yourself, search google...

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Re: Does a realty company make a difference?
Posted by: DeathofaSalesman ()
Date: April 16, 2008 08:33AM

I always thought it was funny that Realtors have a photo of themselves in their ads and literature, like they're some sorta actor and that's their "head shot." If they know so much about real estate why does it matter what they look like?

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Re: Does a realty company make a difference?
Posted by: Radiophile ()
Date: April 16, 2008 08:43AM

DeathofaSalesman Wrote:
-------------------------------------------------------
> I always thought it was funny that Realtors have a
> photo of themselves in their ads and literature,
> like they're some sorta actor and that's their
> "head shot." If they know so much about real
> estate why does it matter what they look like?

It is even funnier to notice that the pictures are 20 years old!

One Long and Foster real estate agent in MD, a very "mature" woman at the time, is named "Gaye Horny". I saw her ads in those free homebuyer magazines. It mad me chuckle.

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Re: Does a realty company make a difference?
Posted by: whatever leeches ()
Date: April 16, 2008 11:19AM

Leeches,

Don't be hatin'.... I detect a little of the green eyed monster there! Is it hard for you to be unbiased as you watch from your Ford Taurus as the realtors in your neighborhood drive by in BMW's? It's ok, mediocrity is acceptable, just don't be bitter... it's ugly.

Now get back to work.

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Re: Does a realty company make a difference?
Posted by: formerhick76 ()
Date: April 16, 2008 11:51AM

Sure, the commission is negotiable but it the supply-demand curve there is not terribly elastic.

OK, so is anyone denying that there is a subset (how large I don't know) of agents that won't show houses with a >3% commission (unless their buyer points out a house they found on zillow, realtor, etc.)? This is a severe limitation on reducing buyer's commission below 3%.

Due to the brokers' presence, your agent cannot negotiate her 3% down to 1% as her broker is chomping down 1.5% in many cases. (What value added do the brokers provide aside from providing a small cubicle and a phone hookup? The agents are at least interfacing between buyer, seller, bank, inspector, etc. and put in the shoe leather when showing someone houses.)

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Re: Does a realty company make a difference?
Posted by: stinkypoon ()
Date: April 16, 2008 12:28PM

Good Speller Wrote:
-------------------------------------------------------
> A house sold using a Realtor will sell on average
> at a price 16% higher than someone selling it
> themselves (For Sale By Owner). Not my stats,
> came from 2006 NAR (National Association of
> Realtors) article.
>

This is the same NAR that said home prices will keep going up and up and up and that "now is the time to buy" in 2006. Everybody that has listened to them is fucked. Their reputation is so bad it's getting to the point that people are accusing them of fraud for knowingly putting out false information.

So no, I don't believe that bullshit about a house selling for 16% higher with a realtor.

If I were to sell a house for $500k, why would I pay some fly-by-night realtor $15k just to put my house's info in the MLS when I can do it myself for a couple hundred bucks? Fuck these used house salesmen. They are way overpaid and they have an embargo on the industry.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 16, 2008 12:55PM

whatever leeches Wrote:
-------------------------------------------------------
> Leeches,
>
> Don't be hatin'.... I detect a little of the green
> eyed monster there! Is it hard for you to be
> unbiased as you watch from your Ford Taurus as the
> realtors in your neighborhood drive by in BMW's?
> It's ok, mediocrity is acceptable, just don't be
> bitter... it's ugly.
>
> Now get back to work.


hardly - I'm livin-it-large on the commissions I save ;)

Options: ReplyQuote
Re: Does a realty company make a difference?
Posted by: Whore ()
Date: April 16, 2008 01:40PM

Your mom is livin large. Now go do something for your commision, cunt.

Options: ReplyQuote
Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 16, 2008 01:43PM

Whore Wrote:
-------------------------------------------------------
> Your mom is livin large. Now go do something for
> your commision, cunt.

is school out already?

Options: ReplyQuote
Re: Does a realty company make a difference?
Posted by: Whore ()
Date: April 16, 2008 01:55PM

It is. Now get back to work, cumdumpster.

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Re: Does a realty company make a difference?
Posted by: DeathofaSalesman ()
Date: April 16, 2008 09:59PM

Wow all the trolls really got a rise out of Whore.

I googled real estate agent salary and found:

The median expected salary for a typical Real Estate Sales Agent in the United States is $34,604. This basic market pricing report was prepared using our Certified Compensation Professionals' analysis of survey data collected from thousands of HR departments at employers of all sizes, industries and geographies.

at salary.com

So it sounds like a slightly-lower-then-average paid job, and we shouldn't be so hard on them. Wonder what it would be without the NAR?

Options: ReplyQuote
Re: Does a realty company make a difference?
Posted by: Good Speller ()
Date: April 16, 2008 10:39PM

stinkypoon Wrote:
-------------------------------------------------------
> This is the same NAR that said home prices will
> keep going up and up and up and that "now is the
> time to buy" in 2006.

It's always the time to buy. Home values aren't where they were, but real estate is the safest investment out there. Most people don't buy a new principle residence every year. Do you...if you do, you are a fucking moron.

> Everybody that has listened
> to them is fucked.

Only people who bought their house with the intention of flipping it a year later are "fucked" as you put it. Or, they are undereducation idiots who don't understand how a loan works.

> Their reputation is so bad
> it's getting to the point that people are accusing
> them of fraud for knowingly putting out false
> information.

Who is? Where? Nothing false about statistics. The WORST 5 year period for home values in this area was 7% growth (1979-1983), that stat is for the entire Northern VA region...not just Fairfax County.

> So no, I don't believe that bullshit about a house
> selling for 16% higher with a realtor.

It's not bullshit. If you weren't some pussy hiding behind his keyboard, I'd be happy to sit down and show you the data. Most FSBO's are cheap ass fucks who have no idea what they are doing and are just itching for a lawsuit when the contract isn't properly executed.


> If I were to sell a house for $500k, why would I
> pay some fly-by-night realtor $15k just to put my
> house's info in the MLS when I can do it myself
> for a couple hundred bucks?

Best of luck to you. Hell, if someone wants to take the time to show the property and learn the contract themselves and deal with the bullshit Realtors deal with (client like you would be a prime example)--I applaud them for doing it. It makes sense if you want to deal with that shit..the fact is, most people don't want to...that is why Realtors get paid.

> Fuck these used house
> salesmen. They are way overpaid and they have an
> embargo on the industry.

Overpaid? How much do you think Realtors make on average?

It's not as easy as you all try to make it seem. The real work comes in getting clients, just like any sales driven industry it's all about lead generation.

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Re: Does a realty company make a difference?
Posted by: Heh ()
Date: April 17, 2008 04:18PM

The only person who would defend a real estate agent is a real estate agent...nobody likes those self righteous pricks.

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Re: Does a realty company make a difference?
Posted by: 007 ()
Date: April 17, 2008 04:28PM

How many hours per week does a real estate agent work? Hours posting on FU doesn't count...

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Re: Does a realty company make a difference?
Posted by: WashingToneLocian ()
Date: April 17, 2008 04:35PM

007 Wrote:
-------------------------------------------------------
> How many hours per week does a real estate agent
> work? Hours posting on FU doesn't count...


It depends on how much money they want to make. To make a decent living in residential real estate, I understand an agent needs to work about 60 to 70 hours a week, including weekends and evenings when people are off work and can look at homes. There are lots of realtors who try to work 40 hour weeks, but they don't make much or last long.

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Re: Does a realty company make a difference?
Posted by: ITRADE ()
Date: April 17, 2008 04:50PM

That is a good point, realtors who make money hustle. I listed with one of the better selling agents back in 2004 and sold my POS duplex in about a week. She came out, got the house decorated, had it prepped, put out really nice brochures, spent a lot of time on the phone, etc.

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Re: Does a realty company make a difference?
Posted by: BIZ-NASS ()
Date: April 17, 2008 04:53PM

Why when I call an agents cell phone they're always out of town? Or at a lender seminar. Or their processor knows more about whats going on with the case than they do? Most of the time they don't even go to the closing. The commission is well worth making sure they know every aspect of whats going on with their cases. Usually the listing agent and selling agent are playing grabass somewhere else while their poor white-knuckled client is signing on the biggest investment of their lives.

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Re: Does a realty company make a difference?
Posted by: leeches ()
Date: April 17, 2008 05:03PM

WashingToneLocian Wrote:
-------------------------------------------------------
>
> It depends on how much money they want to make. To
> make a decent living in residential real estate, I
> understand an agent needs to work about 60 to 70
> hours a week, including weekends and evenings when
> people are off work and can look at homes. There
> are lots of realtors who try to work 40 hour
> weeks, but they don't make much or last long.

really shows how inefficient the ecosystem is.

lets assume it takes 40 hours of active agent time to buy or sell a home

so for a 500k home, that's 15k in fees each to the buying and selling sides

so that's about 750k per year of fees generated for every full year of ACTIVE agent time

(feel free to argue with the detailed numbers but you get the idea)

so that suggests two issues:

1) There are too many people in the realtor companies all taking a cut and adding inefficiency
2) There are just too many realtors and hence most are not spending their 80 hours a week doing much useful real work benefiting customers e.g. they're busy rather than productive

This seems to align with the fact that fees generated in FFX have presumably doubled as home prices doubled but service has not improved - consumers are paying twice as much for no gain.

It looks as if that extra money just got spread around into more realtors working 80 hours and more inefficiency - wheel spinning

or am i missing something?

does anyone have better figures?

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Re: Does a realty company make a difference?
Posted by: ITRADE ()
Date: April 17, 2008 05:27PM

Remember half of that 15k goes to the agency, and half to the agent.

If it takes you 40 hours to sell a home, and you sell one every single week of the year, more power to you. But I doubt that is the case.

You probably sell 10 to 20 houses a year, and at $500,000, you yield $7,500 a house - or up to $150,000 a year. A nice salary, but by DC standards, not setting the world on fire.

First year associate attorneys (we're talking completely wet behind the ears) at the large DC firms make more money.

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Re: Does a realty company make a difference?
Posted by: formerhick76 ()
Date: April 17, 2008 06:03PM

Generating $25 million puts you among the elite of agents, does it not?

The 'Cool People' club of the NVAR requires $6 million.

http://www.nvar.com/awards/rookie.lasso

Laura Maschler was Rookie of the Year, selling 13 places for $14.4 million.

Seems to me being a broke is the better way to go. Your minions do all the hard work and you just sit there and collect that 1.5%. :)

Remember, you're spending $$$ on gas, broker fees, promotional materials, etc.

(Or, leeches, why not just become a real estate agent?)

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Re: Does a realty company make a difference?
Posted by: ITRADE ()
Date: April 17, 2008 06:08PM

6,000,000 in sales gets you $90,000 in sales commission (assuming you split the 3% sellers commission 50/50 with your agency).

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Re: Does a realty company make a difference?
Posted by: WashingToneLocian ()
Date: April 17, 2008 07:25PM

leeches Wrote:
-------------------------------------------------------
>
>
> It looks as if that extra money just got spread
> around into more realtors working 80 hours and
> more inefficiency - wheel spinning
>
> or am i missing something?
>
> does anyone have better figures?


Pretty much. As soon as the market gets hot, all the idiots get licenses and jump into the market and screw it up for the agents who know what they are doing.

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Re: Does a realty company make a difference?
Posted by: WashingToneLocian ()
Date: April 17, 2008 07:31PM

formerhick76 Wrote:
-------------------------------------------------------

>
> Laura Maschler was Rookie of the Year, selling 13
> places for $14.4 million.
>
>

So if she is getting 1.5 percent, that means she is making just over $200K. That might seem good, but how much time did it take her to sell those houses? I mean, that's about one house a month. How many people had to see those houses before they sold? Probably a lot. And she had to be there for every one of the showings, open houses, etc. On top of it, she is the "Rookie of the Year." One can assume her performance is atypical. So there are probably lots and lots of people working nearly as hard as she is but only clearing 4 or 5 million in sales (60K to 75K). Not great pay for that level of work and aggravation.

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Re: Does a realty company make a difference?
Posted by: Agent wannabe ()
Date: April 17, 2008 08:10PM

Making anywhere near that amount of money for the time spent "showing" houses is too much money. And they don't spend any personal money. They use the resources from whichever agency they work for...who are then affiliated with a broker or settlement company that they "have to use". Which is also bullshit. If you don't know what you're doing when you buy a car you get shorted by the car salesmen. If you don't know what you're doing when buying a house you're gonna get shorted by the agent. Your average real estate agent normally isn't a real estate expert. They work a second job or have a husband or wife picking up the slack...their commission checks are just money in the bank. How much education does it take to get a license?

Wow...I'm starting to think I need get my real estate license so I can take a slice of the pie for myself.

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Re: Does a realty company make a difference?
Posted by: Loving watch Realtors squirm ()
Date: April 18, 2008 07:19AM

Realtors are idiots.

A bunch of happy hour drunks.

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Re: Does a realty company make a difference?
Posted by: stinkypoon ()
Date: April 18, 2008 09:45AM

Good Speller Wrote:
-------------------------------------------------------

> It's always the time to buy. Home values aren't
> where they were, but real estate is the safest
> investment out there. Most people don't buy a new
> principle residence every year. Do you...if you
> do, you are a fucking moron.
>

No, it is not. When you owe more than the house is worth, you are in a perilous situation. Life events might force one to sell, and if they don't have tens of thousands of dollars to bring to the table, they'll have to foreclose. It is NOT the time to buy. Recommending people to do such is just plain idiotic.


> Only people who bought their house with the
> intention of flipping it a year later are "fucked"
> as you put it. Or, they are undereducation idiots
> who don't understand how a loan works.
>

No, pretty much anybody that has bought in the last few years is fucked. Undereduction idiots? LOL you stupid twit.

>
> Who is? Where? Nothing false about statistics.
> The WORST 5 year period for home values in this
> area was 7% growth (1979-1983), that stat is for
> the entire Northern VA region...not just Fairfax
> County.
>

Prices are tanking in northern VA. Values have fallen over 30% in some neighborhoods. Your stats are total bullshit.

>
> It's not bullshit. If you weren't some pussy
> hiding behind his keyboard, I'd be happy to sit
> down and show you the data. Most FSBO's are cheap
> ass fucks who have no idea what they are doing and
> are just itching for a lawsuit when the contract
> isn't properly executed.
>

Internet tough guy, that's a great way to win an argument. It sounds like some sleazy realtor wants his commission and is pissed that people are figuring out how to remove the unneeded middle-man. Back to waiting tables for you, loser.

> Best of luck to you. Hell, if someone wants to
> take the time to show the property and learn the
> contract themselves and deal with the bullshit
> Realtors deal with (client like you would be a
> prime example)--I applaud them for doing it. It
> makes sense if you want to deal with that
> shit..the fact is, most people don't want
> to...that is why Realtors get paid.
>

More and more people are doing it because it IS worth it. They realize that realtors overcharge and in many cases are nothing more than uneducated sleazes that don't deserve their overpriced commission.


> Overpaid? How much do you think Realtors make on
> average?
>
> It's not as easy as you all try to make it seem.
> The real work comes in getting clients, just like
> any sales driven industry it's all about lead
> generation.

How to get a client 101: Tell them it's always the time to buy, especially when it's not.

You people are something.

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Re: Does a realty company make a difference?
Posted by: stinkypoon ()
Date: April 18, 2008 09:49AM

Good Speller Wrote:
-------------------------------------------------------
> The market failure has NOTHING to do with
> commission rates.
>
> It has to do with retarded consumers who don't
> understand how thier loans work.
>

And their asshole realtors that told them "now's a great time to buy". When the industry "experts" dish out such excellent advice, perhaps that is a sign that we need an industry purge. Get rid of the useless, overpaid middleman and let him go back to busing tables (no offense to bus boys, they actually work for their wages).

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Realtors do make a difference
Posted by: Laura Maschler ()
Date: May 08, 2008 08:42PM

Hi,

I was surprised to know there is so much conversation, frustration and some lack of knowledge with a Realtors' responsibilities. I have been very blessed by wonderful clients in what has been a very difficult market. As we all know with change good or bad comes conversation (typically) negative which is sad.

I have been able to help buyers make incredible buys. I have helped sellers prepare their homes and successfully settle. It is a great feeling having a buyer and a seller happy at the settlement table.

In response to how we are paid-First I must say I am very surprised that a Realtors/Brokers compensensation is the first thing on the agenda. I certainly do not ask my friends, co-workers, customers their salary. In my former corporate job I always wanted to hire the BEST people to work for me-not the one I could pay less than me-Performance was KEY.

Laura Maschler


I can see the belief is Brokers pay for everything and that is simply not true. In todays market...I purchase inventory/props hire painters/renovate kitchen/baths. I have watered a few yards, cleaned a few basements and know that my clients appreciate my efforts. I guess I am just blessed-My dad raised me and always said (YOU ARE ONLY AS GOOD AS YOUR LAST GOOD DAY). That keeps me going!

Laura

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Re: Does a realty company make a difference?
Posted by: Mawg ()
Date: May 09, 2008 02:38PM


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