Live data from Hacker News

After a $1.8B verdict, the clock is ticking on the 6% realtor commission

cnn.com

201–210 of 220 posts

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#201
I worked with Redfin years ago to sell my house. The agent came in, shared his analysis and wrote down on a piece of paper what the house would sell for and how much I would make at closing. We officially listed the house on Friday at the previous suggested number, had 3 offers by the end of the weekend and accepted the only realistic offer a few days later for almost exactly the price he stated. Mind you this was back in 2014 so the market wasn't white hot and our house was just another house on a street where most looked the same. I can't recall why we did not qualify for the 1% rebate back then but I believe he deserved every penny of his commission.

However I have been on the mortgage side of the business as a loan processor and it seemed to me that for the most part realtors were lazy. It seemed crazy to me no matter the work involved they expect that 3% commission. In the end you are having to pay to access MLS, and that access costs 3%, even if the house could sale itself due to the area or market. I have seen realtors advertise that if they don't sell your house in 30 days, then they reduced the commission, which I think is probably the best way to go about it. I would rather get the sale done quickly than what usually happens where the realtor lists the house for what the sellers want and then they have to keep dropping the price because its too expensive.

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#202
post #23

Earlier quoted context omitted.

And title insurance

Of all the scams associated with real estate transactions, title insurance is kind of legitimate. The title chain itself may be recorded, but there may be some lien against the property that was not properly recorded. That’s the situation you protecting against. Now whether that’s worth .5-1% is debatable.

Oh don't get me started on title insurance in Texas! It gets prorated depending on the last time you purchased or refinanced the property, but it has to be renewed every 7 years! Mind you 7 years ago they checked and verified it was good, so why do I need to renew when we know there are no issues with the title? If you notice, most title offices are very nice, beautiful buildings, fancy furniture and furnishings. That is what you are paying for!

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#203
post #182

Earlier quoted context omitted.

That’s another good point! Frankly, there’s really nothing stopping your seller’s agent from lying about the offers that are coming in or at least gently pushing sellers toward commission-maximizing offers, and the scenario you described is basically a push in the direction of buyers’ agents disappearing.

> lying about the offers that are coming in Certainly they would not engage is such questionable ethical behaviour ;)

I found a house on MLS (20 years ago), and allerted my buyer's agent. She kept refusing to engage for some reason. We pressured her to inquire and ended up buyng the house. I later told this story to a neighbor and he said the builider's (seller's) agent was refusing to pay full commision to the buyer's agents. So I guess that's why my agent was ignoring the listing. :-)

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#204

Earlier quoted context omitted.

I bought on short sale and my realtor made it happen. Made $180,000 when I sold that place. Used the same realtor buying the next place, it was down to 8 people that put offers in on the only day showing. We got it because she knew a couple of tricks, one not exactly ethical. She is a family friend and normal people would have got 1/2 the work from her. A hardworking realtor can absolutely make a difference. Good luc…

Ah, but you didn't get a hardworking realtor, you got a family friend to break the rules just for you. You even admit that no one else would have gotten the same deal that you did. There doesn't seem to be any luck available.

Isn’t some gotcha. You’re just rewording what I wrote as if it was. If you got a hard-working realtor, they could do the same things that our realtor did, because they were friendly.

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#205

Earlier quoted context omitted.

First off, I'm not opposed to such a world in general. However, you, like the other replier, failed to read how my $300k number was intended as a joke about my optimism. Thus, it makes more sense to conclude my estimates (made with both a degree in Finance and access to BrightMLS comparables to rigorously draw my conclusions) was obviously far lower than $300k and your numbers don't really make much sense. Remember,…

Unless you did an experiment with different realtors, you have no idea if someone else besides the realtor (since you have known since 4) would have found you the $300k. I have no doubt that there is a range of talent for realtors, just like SWEs. The problem is the 6%. Why doesn't your realtor get 10% and everyone else get 1%? The system is rigged.

>Unless you did an experiment with different realtors, you have no idea if someone else besides the realtor (since you have known since 4) would have found you the $300k.

Neither do you. Am I to believe you know more about one of the houses I owned than I do? Again, I'm all for lifting the fixed commissions. I'm just saying there does exist exceptions that I would still pay 5% for. Although, like I said, her operation isn't just some aspiring salesman acting slick. It's a team of about 4 professionals under her that go over every single angle to prepare it for the market. She's not even that persuasive or talkative. All they do are value-added services, which is how it should be. I wouldn't even know how to update the records to classify it a multi-family, yet they do it all automatically.

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#206
post #105

Earlier quoted context omitted.

Well, you're paying TWO realtors. Buyer and seller, so it's really half that. But yeah, I would say $10k is a pretty sweet deal in a lot of cases.

$10k is 6% of $166k. Not many homes selling for that now a days. The median home sale price in June was $426k. Or $25.6k of commission. Typical Sunnyvale prices were about 2.4million, or $144k commission.

They each get $10k - buyer and seller. For very expensive homes realtors will often "take a hit" to secure a sale.

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#207
post #85

Lots of people hating on realtors here, but my buying realtor: - Put up with me through several offers that fell through due to issues with the house - Met me quickly several times to see houses in a very hot market (covid) - Constantly found me homes that met my criteria - Was able to "get the dirt" on the homes and give me good advice for the homes that fell through, not pressuring me to buy And my selling realtor,…

How many of those issues are created by a poor system, perpetuated by realtors though?

Probably some, sure. But also I can see things being much worse in other systems.

Like, figure the haircut you take bringing your car to a dealership...

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#208
post #103

Lots of people hating on realtors here, but my buying realtor: - Put up with me through several offers that fell through due to issues with the house - Met me quickly several times to see houses in a very hot market (covid) - Constantly found me homes that met my criteria - Was able to "get the dirt" on the homes and give me good advice for the homes that fell through, not pressuring me to buy And my selling realtor,…

Is what you’re talking about worth… $10k? Or the likely $100k you paid?

You think I paid $100k in realtor fees???

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#209
post #105

Earlier quoted context omitted.

$10k is 6% of $166k. Not many homes selling for that now a days. The median home sale price in June was $426k. Or $25.6k of commission. Typical Sunnyvale prices were about 2.4million, or $144k commission.

They each get $10k - buyer and seller. For very expensive homes realtors will often "take a hit" to secure a sale.

5% commission (or even 4%) of a multi-million dollar sale is still a ton of money for the work/expertise/risk I’ve seen Bay Area realtors put in anyway. I’ve never seen anything less than 4%, and the realtors were very cranky.

Rural area realtors can be pieces of work too, but at least they aren’t claiming to be worth as much money. ;)

Re: After a $1.8B verdict, the clock is ticking on the 6% realtor commission

#210
post #103

Earlier quoted context omitted.

Is what you’re talking about worth… $10k? Or the likely $100k you paid?

You think I paid $100k in realtor fees???

A lot of folks here have been in Bay Area markets - and that’s on the low end for commissions there for awhile.
Post reply on HN