All Forum Posts by: Account Closed

I think the more interesting aspect of this entire decision is with the Buyer's agents. Here in NY, not many, if any, use one. People scour the online ads, Pennysaver, lawn signs, etc., and contact the agent. I'd be curious to hear from the pros on how this law will affect this group of agents and how folks like me, who will be using a flat-fee agency, should handle working with them when it comes to commissions?

I agree. I think the more interesting aspect of this entire decision is with the Buyer's agents. As previously mentioned, here in NY, not many, if any, use one. People scour the online ads, Pennysaver, lawn signs,  etc. and contact the agent. I'd be curious to hear from the pros on how this law will affect this group of agents and how folks like me, who will be using a flat-fee agency, should handle working with them when it comes to commissions?

Of course, your skill set is worth the money. It just ain't worth 6% of the sale of my home. Simple as that. And please, let's not think selling homes takes major skills. You need to be personable, have great networking skills, be diligent, thick-skinned (lots of "no's on those cold calls), be capable when it comes to negotiating between seller and buyer. Anyone can learn paperwork and rote tasks. 

I know all about fees, charges, payments, etc. My point was, that a doctor goes to school for 18 years, and has a residency, internship, etc. You cannot compare the amount of brains, experience, and education that is required to be a doctor. How one can think that a real estate agent is worth the same amount of money as a doctor is asinine and ignorant. 

Nope

Chris,

"However, you get what you pay for. If you pay them too little, they will not have the money to market your property effectively."

Tell me, how much does it cost to place an ad in a local Pennysaver, and post it on MLS? Especially when the print ad can include up to a dozen homes. The cost of doing this is negligible at best and is not a large expense for the broker, compared to the whopping commission they get from the sale of just one home.

And please, don't tell me about the cost of color copies for Open House flyers and the like. The broker has expenses he needs to pay, no doubt - rent, utilities, etc. But the actual costs that you mention to "properly market your home," what are the costs specifically?

As I had mentioned, I worked part-time as an agent for about 2 years back in 2001-2003. I don't remember spending any large sums of money to market the house. I used the company website, popped it up on MLS, and added the home to the weekly listing the broker ran in the Pennysaver(s). He ran this ad every week. It was built-in, fixed cost. Not all agents had their homes in that ad. Like all things in America, it came down to office politics, and how the broker felt about a particular agent. If he liked you, your homes were listed almost every week. If not, well, it was a roll of the dice. Since agents don't get paid a salary, the broker knows exactly what their fixed costs are each and every month.

I'll be hiring a flat-fee agency to sell my home. The maximum I will pay him is 1/2% with a minimum of $2500. The services that he is offering are a literal laundry list that I could not possibly do on my own. I have a real estate attorney that will handle all of the legal paperwork, etc. My lawyer will work with the agent

What are these actual costs that you mention to "properly market your home?" Your area may market differently then we do here. I doubt it. But who am I to say? I'd be curious to hear what you think these costs include.

James, I agree with you 100%

Nice try. But, ah, no.

Tbis is a done deal. Bet the house. 

No buyer ever paid anywhere near $5,000 let alone $10,000. Buyers see a sign, look online, call an agent and see houses. The average buyers will NEVER pay close to this. Ever. 

Agents will get a lower commission. This will force them to go out and find more houses to sell. This also means that more agents will be doing the same thing. This is called COMPETITION.

Now, like all other businesses in America, agents will have to hustle a bit more, make a stronger sales pitch to sellers, and offer greater service to those sellers to secure that listing.

The power is now back in the hands of the seller, just as it should be.

This is what realtors and the industry want the homeowner to believe. As if they are this mystical entity that can foresee what you will see your home for.

The owner makes the final determination on what to price their house at, not the agent. The agent will give you comps for your area, and make a suggestion, but the final decision is yours.

Remember that.