I do think realtors should get paid but paying a realtor over a 1000 dollars an hour is crazy. I cant tell you how many realtors brag about a house selling in 1 day. One day and a commission of 30k is insane.
Good for you guys, it's your Equity, not the agents. I'm a realtor and I always negotiate down, why? Because I can. I'm here to flip the real estate game on its head in my area. I will still fight to get my seller top dollar.
@@johnheiser8882 how much should a dual agent get? found out my agent is representing the buyer when I received the offer to sign. agent want 6% commission.. I (seller) offered 3%... agent said they would only reduce commission 1%.
@@she_greene Does the contract state that he can only reduce his commission by 1%? It depends on what you signed up for, however, it's your house don't be embarrassed to negotiate.
@@she_greene I encourage to read the contract, to make sure that he can only reduce his commission by 1%. The agent works for you, The agent needs to get you the seller, the most amount of money possible. Not the other way around!
Many houses sell themselves, if the staging, decluttering, fresh neutral painting, curb appeal, and fixes are done. But if that is not done, no high priced marketing realtor is gonna sell your house at a decent price. I think there should be a contract agreement that better reflects both mutually. Sell in 40 days 2%, 30 days 3% 15 days 3.5%. If you are worth your salt as a realtor it will push you for the 15 day offer. Most buyers know what ghry like and the feeling they get when it is right.
What about a seller's market? It doesn't make sense that a seller pays 6% commission when the 90% of people research properties online before seeing it and in a seller's market, homes sell quickly. So I don't see why 6 or even 5% is warranted when the market bears and homes practically sell themselves and the realtor didn't have to put a whole lot of effort into it. And if a realtor has agreed to a lesser % commission from the beginning, why would that affect the motivation of the realtor to sell your property? The realtor was not forced to accept the lower commission; they agreed that they would do their job by accepting it. I would not provide for my patients any less if they were on Medicaid as opposed to private insurance It's unethical to say that a realtor would not be motivated to sell your property if both parties agreed up front about a lower commission rate. The agent agreed to do their job regardless. This video now causes me to be more concerned about being ripped off as a seller in a SELLER'S market.
I would agree that in a seller's market, you may not need to pay a 6% commission unless you have a unique property or unless you want your home to stand out amongst the competition. Paying a higher commission can actually net you more money as you will have motivated agents wanting to show the home. Also there is strategy to paying a buyers agent a higher commission especially when issues arise as they are more apt to keep the deal together and not wanting it to fall apart. As for the comment on agents not being motivated by a lower commission, sorry to say but that's 100% accurate. Not only is the listing agent not motivated in those scenarios but either is the buyers agent. I know this because I see/hear it all the time. If you have 2 homes that are similar but one is offering less commission, you will see more activity on the higher commission home. I see agents all the time list a home for 1-1.5% and it ends up just sitting as most agents are willing to work for that type of commission.
@@JebSmith Thank you for your response, Jeb. Do you believe that in a seller's market, homes will end up sitting b/c its not being shown b/c of the lower commission rate? If 90% of buyers initially search for a home on the internet and they see a home that piques their interest, wouldn't they want to see it? And if they requested to see the house, would they be dissuaded from looking at it or told that its ''already in escrow'? Because it seems that this may be what I'm hearing here although there is no way for a buyer or seller to prove it. And if this is true, then this is profoundly unethical and it creates a distrust that I did not have before.
@@catbee1452 I think homes end up sitting because they aren't priced right or something is wrong with them in most cases..........LIkely overpriced more than anything. In my market, most professional agents won't even consider a lower commission (less than 2% each side) so in those cases, those sellers end up working with a non experienced agent. In the case where my clients want to see those homes, I am upfront with them and tell my clients they aren't willing to fairly compensate me and the majority of the time, my clients don't want to see it as they immediately think that if sellers are already balking over commission then it's likely going to be the same when negotiating price, repairs, etc....... At the end of the day, I'm not willing to work for less than 2% and I believe the majority of agents, especially in my market feel the exact same way. I've walked away from many listings because I wouldn't negotiate to that level......Wouldn't you rather have a professional negotiating on your behalf and not the person who will just list your home for whatever?
@@JebSmith If I have an agent and I find my future property, then as a buyer, I am going to request to view the property regardless if my agent wants to show me or not. If not, then I will hire a new agent to show me the property or for that matter, I will call the selling agent and request a "showing" without representation. I've done it before. At the end of the day, the real estate game is not what it used to be even ten years ago. Consumers have much more tools to view listings and get background information about the property than ever before. If I can't get the information, I have several friends in the business that could research the property for me. The days of a six percent commission are eroding and rightly so! SAY NO TO 6% COMMISSION!!!
@@JebSmith I believe that in a seller's market, whereas appropriately priced, great homes are only days on the market, even experienced professionals should not be asking 6%.
Am I understanding you correctly you won't do your best if you aren't getting 3% ??? This is why I don't trust most realtors. If the house is selling for 600k and the market is hot, making 2% on 600k for 1 -4 days of work which equates to 8 -40 hours and you make ONLY 12k for 8 -40 hours, you aren't going to do your best ? That's pretty sleezy and you would probably be fired by the owner. Owners aren't stupid, They know how long homes are staying in the market in their areas. If it's priced right and you aren't getting offers means the realtor is slacking and should be fired,
That's always the answer from realtors, you get what you pay for. Especially during a pandemic, you can expose a house for free to the market on social media. I call B.S. I'm a realtor, I will still negotiate for my seller. It's their equity. I gladly charge 2.00%. Why? Because I can. I might even charge 1.25%. Because I can!!!! 👏💪😁😄😃😀👍💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪
The marketing part of this video is thing of the past. Just list the house on MLS then it will populate across many websites. Most buyers are looking for houses online these days.
Yup. When I bought, my realtor did nothing to help. I ended up finding the house myself online. I kept sending her the listings I wanted to see. She was just along for the ride. Thats why I refuse to pay a realtor to sell
6% commissions are a thing of the past now that consumers can view listings through various sites: Redfin, Zillow, Trulia, Realtor and several other sites. I recently sold my rental property and turned down several realtors that would not negotiate their commission. Instead, I went with an agent that went with 4% split 2 for listing and 2 for buying. I had no problems with buying agents showing my property. My property sold within a week above asking price. Do not go with a 6% commission! Shop around and the internet is your friend.
4 to 4.5 % would be fair in most markets. When I considered selling my condo one agent wanted 7% commission, 1500 move out cleaning fee, 1000 moving expense for any marks or after cleaning. I was told my condo was super clean but every buyer want's a property cleaned before moving in and it will cost 1500 dollars. None of these fees were negotiable. I told her to get out of my condo and to never contact me again.
So you're saying, if you agree to a lesser percentage you'll skimp on the work you agreed to do to sell the house and you'll be a scumbag and actively negotiate against the interests of your client as some kind of childish retribution? Is that even legal? Sounds like future clients should steer clear of you.
perhaps you should rewatch the video because that was never said...............That said, I will say, you get what you pay for and I'm not just talking about real estate.
@@JebSmith You did say that. You wouldn't be someone's agent without YOU agreeing to the terms, including compensation. If you don't want the job at the rate your client wants to pay, don't take the job. But if you do take the job, then do the job to the best of your ability and represent the interests of your client to the fullest. Frankly, for what services most real estate agents provide these days, I think they're grossly overpaid.
As a buyer if I did all the legwork and only contacted a realtor to help me with the offer letter and beyond, is the comission neogitiable? Could about 1% of the 3%+$500 he is asking for be used to bring down my cost on the home?
Maybe some realtors would be willing to do that but understand there's a lot more to our job than finding a property. The real work doesn't begin until you're in escrow. Keep in mind, you don't pay the Buyer's Realtor in most cases as it's paid by the Seller. A professional is worth every dollar they make.
@@JebSmith The title company and lender are those who do the heavy lifting. I don't see the role of realtors when buying a house except have them making the offer. The best way to have a better deal is to contact the seller realtor directly and offer them to split 2% of the buyer agent fee to 1% for them and 2% refund to the buyer.
If two houses on the same block are for sale! Any savvy salesman will show both homes to all potential buyers! If I have to explain why then you are no salesman!
Good points here, Jeb. As a seller< I would consider setting up a progressive rate schedule whereby the commission rises at certain price points above the starting price agreed upon. Gives agent an incentive and rewards diligence in a seller's market.
You are convincing me to sell my house myself. Most buys simply use internet sites so I don't see a need to pay top dollar an agent.
I do think realtors should get paid but paying a realtor over a 1000 dollars an hour is crazy. I cant tell you how many realtors brag about a house selling in 1 day. One day and a commission of 30k is insane.
Good for you guys, it's your Equity, not the agents. I'm a realtor and I always negotiate down, why? Because I can. I'm here to flip the real estate game on its head in my area. I will still fight to get my seller top dollar.
@@johnheiser8882 how much should a dual agent get? found out my agent is representing the buyer when I received the offer to sign. agent want 6% commission.. I (seller) offered 3%... agent said they would only reduce commission 1%.
@@she_greene Does the contract state that he can only reduce his commission by 1%? It depends on what you signed up for, however, it's your house don't be embarrassed to negotiate.
@@she_greene I encourage to read the contract, to make sure that he can only reduce his commission by 1%. The agent works for you, The agent needs to get you the seller, the most amount of money possible. Not the other way around!
Many houses sell themselves, if the staging, decluttering, fresh neutral painting, curb appeal, and fixes are done.
But if that is not done, no high priced marketing realtor is gonna sell your house at a decent price.
I think there should be a contract agreement that better reflects both mutually.
Sell in 40 days 2%, 30 days 3% 15 days 3.5%.
If you are worth your salt as a realtor it will push you for the 15 day offer.
Most buyers know what ghry like and the feeling they get when it is right.
What about a seller's market? It doesn't make sense that a seller pays 6% commission when the 90% of people research properties online before seeing it and in a seller's market, homes sell quickly. So I don't see why 6 or even 5% is warranted when the market bears and homes practically sell themselves and the realtor didn't have to put a whole lot of effort into it.
And if a realtor has agreed to a lesser % commission from the beginning, why would that affect the motivation of the realtor to sell your property? The realtor was not forced to accept the lower commission; they agreed that they would do their job by accepting it. I would not provide for my patients any less if they were on Medicaid as opposed to private insurance
It's unethical to say that a realtor would not be motivated to sell your property if both parties agreed up front about a lower commission rate. The agent agreed to do their job regardless.
This video now causes me to be more concerned about being ripped off as a seller in a SELLER'S market.
I would agree that in a seller's market, you may not need to pay a 6% commission unless you have a unique property or unless you want your home to stand out amongst the competition. Paying a higher commission can actually net you more money as you will have motivated agents wanting to show the home. Also there is strategy to paying a buyers agent a higher commission especially when issues arise as they are more apt to keep the deal together and not wanting it to fall apart.
As for the comment on agents not being motivated by a lower commission, sorry to say but that's 100% accurate. Not only is the listing agent not motivated in those scenarios but either is the buyers agent. I know this because I see/hear it all the time. If you have 2 homes that are similar but one is offering less commission, you will see more activity on the higher commission home. I see agents all the time list a home for 1-1.5% and it ends up just sitting as most agents are willing to work for that type of commission.
@@JebSmith Thank you for your response, Jeb.
Do you believe that in a seller's market, homes will end up sitting b/c its not being shown b/c of the lower commission rate?
If 90% of buyers initially search for a home on the internet and they see a home that piques their interest, wouldn't they want to see it? And if they requested to see the house, would they be dissuaded from looking at it or told that its ''already in escrow'?
Because it seems that this may be what I'm hearing here although there is no way for a buyer or seller to prove it.
And if this is true, then this is profoundly unethical and it creates a distrust that I did not have before.
@@catbee1452 I think homes end up sitting because they aren't priced right or something is wrong with them in most cases..........LIkely overpriced more than anything.
In my market, most professional agents won't even consider a lower commission (less than 2% each side) so in those cases, those sellers end up working with a non experienced agent. In the case where my clients want to see those homes, I am upfront with them and tell my clients they aren't willing to fairly compensate me and the majority of the time, my clients don't want to see it as they immediately think that if sellers are already balking over commission then it's likely going to be the same when negotiating price, repairs, etc.......
At the end of the day, I'm not willing to work for less than 2% and I believe the majority of agents, especially in my market feel the exact same way. I've walked away from many listings because I wouldn't negotiate to that level......Wouldn't you rather have a professional negotiating on your behalf and not the person who will just list your home for whatever?
@@JebSmith If I have an agent and I find my future property, then as a buyer, I am going to request to view the property regardless if my agent wants to show me or not. If not, then I will hire a new agent to show me the property or for that matter, I will call the selling agent and request a "showing" without representation. I've done it before.
At the end of the day, the real estate game is not what it used to be even ten years ago. Consumers have much more tools to view listings and get background information about the property than ever before. If I can't get the information, I have several friends in the business that could research the property for me. The days of a six percent commission are eroding and rightly so!
SAY NO TO 6% COMMISSION!!!
@@JebSmith I believe that in a seller's market, whereas appropriately priced, great homes are only days on the market, even experienced professionals should not be asking 6%.
Am I understanding you correctly you won't do your best if you aren't getting 3% ??? This is why I don't trust most realtors. If the house is selling for 600k and the market is hot, making 2% on 600k for 1 -4 days of work which equates to 8 -40 hours and you make ONLY 12k for 8 -40 hours, you aren't going to do your best ? That's pretty sleezy and you would probably be fired by the owner. Owners aren't stupid, They know how long homes are staying in the market in their areas. If it's priced right and you aren't getting offers means the realtor is slacking and should be fired,
I didn't say me, I said that's how people think of it...........Just being realistic............didn't say you need to like it.
Thats why we need to turn on realtors. They control the market in order to make the amount they do.
That's always the answer from realtors, you get what you pay for. Especially during a pandemic, you can expose a house for free to the market on social media. I call B.S. I'm a realtor, I will still negotiate for my seller. It's their equity. I gladly charge 2.00%. Why? Because I can. I might even charge 1.25%. Because I can!!!! 👏💪😁😄😃😀👍💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪💪
The marketing part of this video is thing of the past. Just list the house on MLS then it will populate across many websites. Most buyers are looking for houses online these days.
Yup. When I bought, my realtor did nothing to help. I ended up finding the house myself online. I kept sending her the listings I wanted to see. She was just along for the ride. Thats why I refuse to pay a realtor to sell
Guy can’t even peddle his BS without stuttering
6% commissions are a thing of the past now that consumers can view listings through various sites: Redfin, Zillow, Trulia, Realtor and several other sites. I recently sold my rental property and turned down several realtors that would not negotiate their commission.
Instead, I went with an agent that went with 4% split 2 for listing and 2 for buying. I had no problems with buying agents showing my property. My property sold within a week above asking price.
Do not go with a 6% commission! Shop around and the internet is your friend.
Thank you for your response, John Anonymous.
I agree.
4 to 4.5 % would be fair in most markets. When I considered selling my condo one agent wanted 7% commission, 1500 move out cleaning fee, 1000 moving expense for any marks or after cleaning. I was told my condo was super clean but every buyer want's a property cleaned before moving in and it will cost 1500 dollars. None of these fees were negotiable. I told her to get out of my condo and to never contact me again.
Well done! The industry needs to evolve.
Is it normal for a buyers realtor to ask them to pay extra commission?
I wouldn't say it's normal, I've never done it in my career
So you're saying, if you agree to a lesser percentage you'll skimp on the work you agreed to do to sell the house and you'll be a scumbag and actively negotiate against the interests of your client as some kind of childish retribution? Is that even legal? Sounds like future clients should steer clear of you.
perhaps you should rewatch the video because that was never said...............That said, I will say, you get what you pay for and I'm not just talking about real estate.
@@JebSmith You did say that. You wouldn't be someone's agent without YOU agreeing to the terms, including compensation. If you don't want the job at the rate your client wants to pay, don't take the job. But if you do take the job, then do the job to the best of your ability and represent the interests of your client to the fullest.
Frankly, for what services most real estate agents provide these days, I think they're grossly overpaid.
As a buyer if I did all the legwork and only contacted a realtor to help me with the offer letter and beyond, is the comission neogitiable? Could about 1% of the 3%+$500 he is asking for be used to bring down my cost on the home?
Maybe some realtors would be willing to do that but understand there's a lot more to our job than finding a property. The real work doesn't begin until you're in escrow. Keep in mind, you don't pay the Buyer's Realtor in most cases as it's paid by the Seller. A professional is worth every dollar they make.
@@JebSmith The title company and lender are those who do the heavy lifting. I don't see the role of realtors when buying a house except have them making the offer. The best way to have a better deal is to contact the seller realtor directly and offer them to split 2% of the buyer agent fee to 1% for them and 2% refund to the buyer.
If two houses on the same block are for sale! Any savvy salesman will show both homes to all potential buyers! If I have to explain why then you are no salesman!
Good points here, Jeb. As a seller< I would consider setting up a progressive rate schedule whereby the commission rises at certain price points above the starting price agreed upon. Gives agent an incentive and rewards diligence in a seller's market.
Not a bad idea...........or a net listing could also work.
Well, if the agent can get more money paid for the house he/she would already get more due to the percentage commission!
I’ll sell your house for 10% and since I am charging the highest commission that means you’ll get the best deal out of me.
🤔
So what this guy is saying if you don’t pay us what we want we won’t really work to sell your property, ok.