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Is a realtor worth the sh*tton of cash they make off you?
Posted on 4/24/09 at 12:33 am
Posted on 4/24/09 at 12:33 am
I am selling a house and some land and after a preliminary meeting with a real estate agent (who is a client/friend) expect it to sell for 325-340k. I haven't signed anything with the agent, and would obviously much rather sell it on my own and keep the 20k+ agent's fee.
Has anyone here had either positive or negative experiences selling a house sans agent? Which methods are proven?
Also my wife runs a business on our property and doesn't want her clients to know the place is for sale yet, so yard signs are not an option at this point.
Has anyone here had either positive or negative experiences selling a house sans agent? Which methods are proven?
Also my wife runs a business on our property and doesn't want her clients to know the place is for sale yet, so yard signs are not an option at this point.
This post was edited on 4/24/09 at 12:46 am
4
Posted on 4/24/09 at 12:51 am to aibo synthetic
Sometimes you need them, sometimes not so much. I sold two houses during the bubble and used them because I was in a rush. They are helpful because they will get with the appraiser to make sure the numbers work. Pretty unethical IMO, but its the state we live in. So if they can get you $340, then go for it. If they can only get what you could get, $320, then say no thanks.
Posted on 4/24/09 at 7:55 am to C
Even if they can get $340 and you can get $320, it's not worth it b/c that money would be in the realtor's pocket anyway. I would suggest maybe doing a mass email with pics of the house and stuff since you can't put a sign out.
Posted on 4/24/09 at 8:03 am to LSU1018
quote:
Even if they can get $340 and you can get $320, it's not worth it b/c that money would be in the realtor's pocket anyway
So you would rather do all the work just so they don't get any commision?
Posted on 4/24/09 at 8:04 am to aibo synthetic
quote:
Also my wife runs a business on our property and doesn't want her clients to know the place is for sale yet, so yard signs are not an option at this point.
Based on this caveat, I'd say a realtor is probably a viable option since you're already down one marketing tool. That doesn't mean you can't negotiate lower fees. Start at 1% and go from there.
This post was edited on 4/24/09 at 8:05 am
Posted on 4/24/09 at 9:26 am to aibo synthetic
A real estate agent is definitely worth the trouble...a lot of people cannot imagine the amount of time, energy, and knowledge it can take to sell a piece of property
General consensus about agents is that they just put a sign in the yard and wait for the phone to ring, but there is a lot more to it than that
General consensus about agents is that they just put a sign in the yard and wait for the phone to ring, but there is a lot more to it than that
Posted on 4/24/09 at 9:54 am to Shankopotomus
quote:
General consensus about agents is that they just put a sign in the yard and wait for the phone to ring, but there is a lot more to it than that
2-3 years ago, thats all it took
Posted on 4/24/09 at 10:14 am to barry
ah, yes....in some cases. but I think that was more of a testament to the good market we were in as opposed to lack of substance by the agents
Posted on 4/24/09 at 10:15 am to Shankopotomus
quote:
but I think that was more of a testament to the good market we were in as opposed to lack of substance by the agents
well obviously, but there are plenty of worthless real estate agents.
Posted on 4/24/09 at 10:53 am to barry
quote:+1
well obviously, but there are plenty of worthless real estate agents.
Posted on 4/24/09 at 11:21 am to barry
as with any profession!
there are plenty of worthless lawyers, insurance agents, doctors, dentists, shoe salesmen, frick you name it and there are good and bad with all professions
there are plenty of worthless lawyers, insurance agents, doctors, dentists, shoe salesmen, frick you name it and there are good and bad with all professions
Posted on 4/24/09 at 12:02 pm to aibo synthetic
quote:
I am selling a house and some land and after a preliminary meeting with a real estate agent (who is a client/friend) expect it to sell for 325-340k. I haven't signed anything with the agent, and would obviously much rather sell it on my own and keep the 20k+ agent's fee.
Has anyone here had either positive or negative experiences selling a house sans agent? Which methods are proven?
Buying agents are epically worthless in most cases, IMO.
Selling agents can provide some value, but 3% is silliness and a total non-starter. (I sold my house 6 months ago using a full-service 1% guy).
At the very least, I think you should provide them with an incentive to actually get a higher price. Here's my methodology:
a)pick a price that you and the agent agree even a deaf/dumb/blind Chinese infant from the year 5BC could sell the place for. There is NO WAY the agent should be paid a lot simply for getting a buyer that YOU can easily get yourself.
b)build a tiered structure that gives them an increasing % above the blind Chinese price. e.g. , maybe the agent gets 1% on the first $295K, and then 5% of anything she gets above that.
Anyway, you get the idea. Presently, with a flat 3% system, there is an illusion of aligned interests, but if you do the math, you'll soon find the only thing she cares about is moving the property. (At 3%, if she puts in the work to get you an extra $10K, she only keeps $300 for that; hardly motivation for her to do anything other than the bare minimum)
Posted on 4/24/09 at 12:10 pm to Tiger JJ
This is really the only sensible solution. Otherwise an agent could theoretically sell a $250,000 house for $200,000, but still get to pocket six grand even though he lost you money in the exchange.
Posted on 4/24/09 at 12:29 pm to Tiger JJ
i don't know where i got the #, but i thought the agent's take was 5-6%.
is it possible to have multiple agents working to sell a property?
how do i find a "full service, 1% guy" in greater br?
Posted on 4/24/09 at 12:41 pm to Tiger JJ
quote:
Buying agents are epically worthless in most cases, IMO.
As a buyer you don't care since there is no direct cash cost to you. The seller has to decide whether paying the costs of the buyer's agent is worth it. Market conditions will most often determine the costs of a buyer's agent.
Posted on 4/24/09 at 12:46 pm to aibo synthetic
quote:
i don't know where i got the #, but i thought the agent's take was 5-6%.
3% buyer and 3% seller
Posted on 4/24/09 at 1:04 pm to aibo synthetic
It depends on your area. In my area, most realtors ask for 5% or 6%. There are several discount brokerage firms that will list your house and then only pay 1% or 1.5% to the buyers agent. We have to show these houses and I have sold a few, but it stinks when you've worked just as hard with a client and they end up buying a house that you make half your normal commission.
It depends on you and how capable you feel you are of selling your own home. You're missing your very best marketing tool with not having a sign. That brings more buyers than anything else. I'm fixing to put a for sale by owner/agent sign in my yard, but its a $300,000 house and its probably going to need the exposure it will get from being in MLS to sell, so if I don't get any good bites in a couple of weeks, I'll list it.
Best of luck whichever way you go!
By the way - realtors don't just sit back waiting for the money to roll in. Its a hard way to make a living. You have a lot of expenses just to stay licensed and for membership in the board. Ask my daughter how many times she ends up having dinner by herself. I work almost every weekend to some extent plus the time I put in my office during the week.
Once in a blue moon I'll have something drop in my lap, but I also have them fall apart at the last minute - had a client that was ready to close get transferred out-of-state a couple of weeks ago. All the time I put in with him and I end up with 0. No one's fault, just the way it works. I just feel very fortunate to be living in Lafayette where things have been pretty stable.
It depends on you and how capable you feel you are of selling your own home. You're missing your very best marketing tool with not having a sign. That brings more buyers than anything else. I'm fixing to put a for sale by owner/agent sign in my yard, but its a $300,000 house and its probably going to need the exposure it will get from being in MLS to sell, so if I don't get any good bites in a couple of weeks, I'll list it.
Best of luck whichever way you go!
By the way - realtors don't just sit back waiting for the money to roll in. Its a hard way to make a living. You have a lot of expenses just to stay licensed and for membership in the board. Ask my daughter how many times she ends up having dinner by herself. I work almost every weekend to some extent plus the time I put in my office during the week.
Once in a blue moon I'll have something drop in my lap, but I also have them fall apart at the last minute - had a client that was ready to close get transferred out-of-state a couple of weeks ago. All the time I put in with him and I end up with 0. No one's fault, just the way it works. I just feel very fortunate to be living in Lafayette where things have been pretty stable.
Posted on 4/24/09 at 1:33 pm to lsubandmom
I'm trying to unload an investment house and I didn't want to use a listing agent and throw away 6%. I found this guy: LINK. I paid around $300 and got it on the mls and realtor.com. You can choose the buying agent commission as well. If you're not in a hurry to sell, I would recommend try this option.
Posted on 4/24/09 at 3:18 pm to Poodlebrain
quote:
As a buyer you don't care since there is no direct cash cost to you.
Herein lies the key to the whole illusion. Buyers' agents continue to demand 3% because they have convinced their clients that there is a non-economic impact to them ("the seller pays"). But if you come without a buying agent, you can and SHOULD be able to negotiate at least some discount versus if you had had an agent.
quote:
The seller has to decide whether paying the costs of the buyer's agent is worth it. Market conditions will most often determine the costs of a buyer's agent.
I was railing against this the other day. Many buying agents will "boycott" a listing if it doesn't have 3% for them written into it. This is a despicable business practice and they earn all the scorn they get. The customer is truly last on their list.
Posted on 4/24/09 at 10:03 pm to lsubandmom
so what should a realtor do to earn their commission?
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