Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)

Post by smileysteve » Wed, Jan 16, 2019, 11:18 PM UTC

tres wrote: post #71

AtlasBarfed wrote: post #38

Earlier quoted context omitted.

"Good" real estate agents are interested in moving as many houses as quickly as they can, to gain as much vig revenue as possible. "Good" real estate agents from the buyers perspective would be slowing down sales, reducing the overall price they make a percentage on anyway (which is why fixed rate for a "class" of real estate would work better) as a disincentive. Why would a real estate agent dissuade someone from bu…

and the inspector is financially responsible for exactly the cost of the inspection. No more. I think you've really hit the nail on the head here. There's a built-in conflict of interest for the agent in every transaction. They are rewarded by moving inventory, not serving their client.

Post by FireBeyond » Wed, Jan 16, 2019, 11:20 PM UTC

bspn wrote: post #43

RobLach wrote: post #16

Earlier quoted context omitted.

Don’t you pay TurboTax? A virtual tax accountant is still a tax accountant. If someone makes a virtual real estate agent to replace real ones, I don’t doubt they’ll still charge a fee.

> Don’t you pay TurboTax? Yes, but the cost is significantly less. When I first moved to the US I used a tax accountant because I didn't know any better and it cost me ~$500 a year (this was in New York). I now file using either TurboTax or TaxAct and my costs are typically in the $60-70 range depending on which tier of service I select. Is it more work? Arguably yes, but I enjoy the freedom of being able to do it al…

Post by FireBeyond » Wed, Jan 16, 2019, 11:22 PM UTC

sokoloff wrote: post #81

harryh wrote: post #75

Earlier quoted context omitted.

Is there a reason you didn't do the deal without an agent and specify in your offer that you wanted the entire 3 points rebated back to you (which is kind of silly accounting, but whatever)? Certainly this would have been possible.

The contract that I signed to sell another property specified that the full commission was due from the seller regardless of buyer representation , but that any registered real estate agent working on behalf of the buyer would share equally in the commission, paid by the listing agency. IOW, I don't think it would have been possible, as it wouldn't have been possible in my listing contract. If I thought it was possib…

Post by aidenn0 » Wed, Jan 16, 2019, 11:23 PM UTC

imbusy111 wrote: post #131

iwantedjusttom wrote: post #121

As a realtor for the past 6 years I can say a couple of quick things as to why I don't see the real estate industry going anywhere, even though I think that real estate brokers are extremely overpaid. - selling your house, at the end of the day, is quite the undertaking. A lot goes into it, it can get emotional, messy, and sometimes quite complicated. Having someone that does it on a daily basis can be nice and reall…

I fail to see how they are overpaid. If someone sells 4 houses per year for 1M for 1.5% fee, that's only $60k per year. That sounds like a mediocre income in markets where houses even go for 1M. I am using numbers for the Bay Area that I have heard of. Maybe other markets are different.

Post by smsm42 » Wed, Jan 16, 2019, 11:23 PM UTC

blazespin wrote: post #23

6 years old thread. Low end commodity RE commissions will be chipped at, but higher end you want an expert. Buying a million dollar house without an expert is fool money gone.