Real Estate Agent???

[Bear55]

I'm aware of that Eckie. My point was they get paid vastly different amounts for the same service. Lets say I run a Grocery store and a guy comes in for a gallon of milk, I charge him $2.99 and he is on his way out of the door. The next guy comes in but I know he had deep pockets, so I charge him $12.99 for the same gallon of milk. Any other business would be run out of town but for some reason we all seem to accept that realtors get paid this way.

[BobT]

Here's one for you regarding commissions.

Server A works in a high end restraunt that because of their atmosphere gets away with charging high prices for their products. You're met at the door by a host/hostess, they seat you, take your beverage order, and because you requested coffee they fill your cup from a thermos and leave the thermos at the table. Your server now takes over and manages your meal order, which is really nothing more than taking your order because someone else delivers it to your table and yet another person takes over the responsiblity of bussing the table after you leave.

Server B on the other hand works in a small mom-pop cafe where the prices are about 1/4th of the high-end restraunt at best. This person takes your beverage order but when it comes time for a refill this person promptly refills it with fresh coffee from the carafe. This same person also manages your meal order, delivers it to your table, and busses the table after you leave.

So tell me why it is that server A deserves 4x the tip (based on percentage) of server B when server B has not only provided more service but better service to boot?

[Eckie]

Bear -- wasn't trying to be sarcastic...wasn't sure if you knew (sorry if it sounded as such).

Are you then implying that a realtor should make a set dollar amount for any transaction, regardless of purchase price?

If so, I get where you're going -- however, while I agree it's not a perfect science...the same works in reverse as well. If paid a fixed amount -- is it then fair that an agent makes $1000 on a $500,000.00 purchase (.2%) and makes $1000 on a purchase price of $10,000.00 (10%)?

I'm not an agent -- just trying to look at this from both sides.

[Bear55]

Eckie I'm not really sure what a fair system would be but its pretty easy to see the current system has some major flaws and I would argue a flate rate makes a lot more sense then these huge commissions for very little work/knowledge. Lets be honest, this isn't rocket science and just about anyone can get a realtor license.

The major problem is these large commissions seem to bring out the riff raff who are looking to make an easy buck. Like I said before I'm sure there are plenty of honest people out there but I know too many people who have delt with some very shady realtors for it to be a coincidence.

[WingDing2]

Yup Just about anyone can get a RE licence...Just try and use it to make a living. Out of the thousands of people a year that do obtain a licence less than 10% make a living with it... further more keep the licence active.

20% of the Realtors sell 80% of the Real Estate.

I'm still trying to get into that 20% group.

[MuleShack]

Eckie I'm not really sure what a fair system would be but its pretty easy to see the current system has some major flaws and I would argue a flate rate makes a lot more sense then these huge commissions for very little work/knowledge. Lets be honest, this isn't rocket science and just about anyone can get a realtor license.

The major problem is these large commissions seem to bring out the riff raff who are looking to make an easy buck. Like I said before I'm sure there are plenty of honest people out there but I know too many people who have delt with some very shady realtors for it to be a coincidence.

A percentage would be fine, but there should be a cap on the upper end somewhere...maybe $10-15K or something?

[BobT]

Originally Posted By: Bear55

Eckie I'm not really sure what a fair system would be but its pretty easy to see the current system has some major flaws and I would argue a flate rate makes a lot more sense then these huge commissions for very little work/knowledge. Lets be honest, this isn't rocket science and just about anyone can get a realtor license.

The major problem is these large commissions seem to bring out the riff raff who are looking to make an easy buck. Like I said before I'm sure there are plenty of honest people out there but I know too many people who have delt with some very shady realtors for it to be a coincidence.

A percentage would be fine, but there should be a cap on the upper end somewhere...maybe $10-15K or something?

Why? Should we now let our government tell us how much we can be paid for a job or how much money we can make? There's a form of government that does this already....let's see....oh yes, communist.

[Eckie]

My point exactly Bob -- well said.

It's not rocket science nor is it a perfect science.

Should we also stir in investment brokers, financial advisors, mortgage brokers? Where does it stop?

Sorry -- don't mean for this post to stray from the original post...just food for thought.

Bottom line -- the system works as is for many agents that work hard: those that put in endless time and money for their clients. As a consumer, it's up to us to do the research and choose a quality, referred real estate agent and not just call the name/number that we see on a billboard sign or a park bench.

[luckey]

My guess is referals play a big part in the success of an agent or agency. I have reffered my agent (used this agent for a number of transactions) to many friends and relatives. You always take a risk in recommending someone to a relative. However, every one has been happy with the agent.

WingDing2,

Keep the customer in mind (from what you said, I believe you do) and you will get the referrals you need to keep going.

[Surface Tension]

Back to the topic.

"Today we came across a lakeshore property that we are interested in. We had not been dealing with any agents, just kind of looking on our own every once in a while. We will probably meet with the representing agent next week to view the property. Is this something where we should have our own agent also? Or would you just go ahead dealing directly with the representing agent? I am a little unfamiliar on how that works."

I see no reason for needing your own agent here. You've already found the property, right? Isn't that what an agent is for, to look for property/home that meets your criteria.

If you do get and agent you better find out how they'll be paid before you hire them.

Interesting story. A friend was selling his home. Didn't use any agent. A buyer came along that was using and agent. Somewhere along the finalization the agent handed the seller a bill for her services. What? Yep she expected the seller to pay her commission. Friend refused stating she was not his agent and that the buyer should pay her commission. Funny how the deal fell through.

So I'll say no you don't need and agent. The only person that can protect you is a lawyer that deals with real estate. The bank is going to have all the T's crossed as well since they will own it.

[Lip_Ripper Guy]

Eckie I'm not really sure what a fair system would be but its pretty easy to see the current system has some major flaws and I would argue a flate rate makes a lot more sense then these huge commissions for very little work/knowledge. Lets be honest, this isn't rocket science and just about anyone can get a realtor license.

The major problem is these large commissions seem to bring out the riff raff who are looking to make an easy buck. Like I said before I'm sure there are plenty of honest people out there but I know too many people who have delt with some very shady realtors for it to be a coincidence.

Been in the business for just over 6 years. What is interesting is that while almost anyone can get the license, there is about a 95% drop out rate, if not higher. The vast majority will not sell a single house during their 6 months as a "realtor". Some will sell 1 or maybe 2 houses before they move on. Most of these people get into the business for the elusive "7%" or because they watched a show on HG TV and think it looks easy. Unfortunately, since these folks make up the majority of feet on the street #'s wise, the general public runs across uneducated, unqualified, inexperienced agents. But...that wasn't the question....

Don't do dual agency. Very simple...don't do it (I'm talking of the same agent representing seller/buyer...dual agency is legally created if represented by the same company also-don't be as worried about this). You need someone watching out for your best interests, just as the seller needs someone watching out for their best interests, and unfortunately in dual agency, nobody's interests are best represented. This is the same advice I would give to my own mother.

[Tom7227]

Back to the topic.

"I see no reason for needing your own agent here. You've already found the property, right? Isn't that what an agent is for, to look for property/home that meets your criteria.

So I'll say no you don't need and agent. The only person that can protect you is a lawyer that deals with real estate. The bank is going to have all the T's crossed as well since they will own it.

In the days of computer searching finding the property may be the least difficult part of the task. A good agent will help with the negotiation, know the parameters of a reasonable deal, and hopefully make sure there are no kidden problems or surprises like a long discussed but not yet started sewer project around the lake, pending developments, new school taxes on the way etc. A respected and knowledable agent can save you a lot of grief in the future. IMO they may be more important than a lawyer, and I'm a lawyer.