Are Real Estate Commissions at the Root of NAR Problems?

RE:Are Real Estate Commissions at the Root of NAR Problems?

CashbackRealty.com — Wed, 19 Mar 2008 11:00:00 GMT

Real estate brokers can provide rebates, cash back, and/or gifts to their clients. As the Department of Justice website indicates "Some real estate brokers offer consumers cash refunds or non-cash incentives to encourage them to use that brokerâ€™s services. Rebates are typically cash payments from the real estate broker to his or her client AFTER closing. Incentives may include gift certificates, closing-cost payments, or free ancillary services such as home inspections or moving services." http://www.usdoj.gov/atr/public/real_estate/rebates.htm Buyer broker rebates are the principal method by which a buyer broker can discount and negotiate his/her fees. As such, broker rebates are morally good because they create healthy price competition and innovation amongst real estate brokers who compete for home buyers. Any restrictions on broker rebates would harm fair trade and increase costs to the home buyer consumer. David Gorman/Real Estate Broker http://www.CashbackRealty.com

RE:Are Real Estate Commissions at the Root of NAR Problems?

Janet — Fri, 14 Mar 2008 11:00:00 GMT

I am a discount realtor and cannot for the life of me understand why there is such a controversy about pricing. If you think you will make more money doing it, charge 6%, charge 10% if you can do it. On the other hand, I feel that I set up for myself a more stable business by having a larger volume of clients at a slightly lower commission level. The problem is a lack of competition I think partially because people don't know how to find a suitable agent for themselves. People ask their friends for recommendations, but most people aren't that comfortable negotiating especially if they really don't have a ton of options. I think internet is the perfect place to resolve this issue. I have recently stumbled on a site called seekingagents.com that I think is doing a good job at working on the issue. Put everyone in one place, have them present their qualifications, and let the the homeowners decide for themselves which way they want to go. Competition is what it is. It's a healthy force for the economy as a whole, even if it might not be great for some individual's bottom line. I for one emrbace it. It has made me a much better agent to be forced to operate on 4% gross margins rather than 6%.

RE:Are Real Estate Commissions at the Root of NAR Problems?

anonymous — Wed, 21 Nov 2007 13:00:00 GMT

i am a discount realtor in canada and when the market is booming we do ok but there is a huge boycott from other agents so when things slow a little, we starve. the broker doesnt care...from what i've seen the best thing to do is get a GOOD full commission realtor to sell for top dollar!

RE:Are Real Estate Commissions at the Root of NAR Problems?

Vetteguy — Wed, 17 Oct 2007 11:00:00 GMT

I'm a broker, I see the need to lower commissions for the seller in a declining market. Having the seller pay a fee up front and splitting that fee with the agent, pay 3% for the agent that sells the property and take .5% for the listing broker. Keeping in mind that advertising will be at an additional fee as well as open house agreements. With the web market today, good photo's and smart descriptions of the propety can get the job done. Lets get salemanship going in real estate once again.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Natalie — Fri, 25 May 2007 11:00:00 GMT

I have a graduate degree and I am a broker. I took on an expired limitied listing that was on the market for 5 months. The first thing I told seller was that I will not take listing unless she allows me to stage it. (free) I rented furniture, placed it on front page of homes magazine, sold in 2 weeks. Asking price 477,00 sold for 475,000. Appraised for 450000. I insisted we get another appraisor, appraised for 470,000.Sold for 470,000. I never represent two sides in same transaction.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Anonymous — Tue, 15 May 2007 11:00:00 GMT

The problem with this business is agents are paid only when the deal is consummated. Some properties sell very fast with little effort form an agent. Others take longer time and effort and some others never sell in spite of all the efforts in which case all the time effort and money spent has gone down the tube. I think a fair way to pay an agent by the hour, just like othr professionals like Attorneys and Doctors

RE:Are Real Estate Commissions at the Root of NAR Problems?

Anonymous — Sat, 21 Apr 2007 11:00:00 GMT

We are with a traditional broker, signed a six-month contract (7%) and had very little traffic. Re-signed for three months with the stipulation that we would probably put our home on the rental market during this period if necessary. After re-signing emailed numerous updated int/ext photos and a detailed rental posting to agent requesting that she update our listing with the unique charateristics of our home and new photos. That was over six weeks ago, still not done.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Anonymous — Sat, 21 Apr 2007 11:00:00 GMT

One of the potential renters (we had lots of interest based on our craigslist ad and "For Rent" sign) decided she wanted to purchase the house after my husband and I spent time showing it to her and discussing a possible lease/purchase option. She had already decided to purchase the house when we put her in touch with our agent. She had her own mortgage person and no credit problems. Our agent refused to give us any direction on how to structure the lease purchase terms ("It's up to you.)

RE:Are Real Estate Commissions at the Root of NAR Problems?

Anonymous — Sat, 21 Apr 2007 11:00:00 GMT

Accused me of taking away her livelihood, impugning her ethics, etc. Said her advertising costs were still the same (Exactly my point, her costs were the same, but her commission doubled due to our efforts.) Then sounded threatening me when she said "when this deal goes through, if it goes through, and we're a long way from that!" (we're not aware of any potential glitches.) Would not allow me to speak during her several-minute diatribe and then hung up on me. Comments professionals.?

RE:Are Real Estate Commissions at the Root of NAR Problems?

Anonymous — Sat, 21 Apr 2007 11:00:00 GMT

A few days after the agreement was signed (at our insistance, otherwise we were going to rent the house to someone else), I sent an email to the agent asking if she still planned to take 7% as the sole agent and since we brought the buyer to the property. She ignored my email. I called her later and left a message that she needed to answer the email. No answer. A couple of weeks later I asked her about it on the phone. Still no answer. Finally pushed for an answer, she exploded.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Ron — Wed, 11 Apr 2007 11:00:00 GMT

There is room always for a good business model whether its unbundled fee for service or discount. What matters is results not how much money is spent or saved or rebated etc. An agent's fiduciary is to the client and the agents responsibility it to close escrow and for that the agent is paid not by the hour or for merit but is paid for results. Do not confuse time or money spent for results. One more thing, the MLS is for B2B use only PERIOD. If people want access to the MLS become a REALTOR.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Peggy Aldinger — Sun, 18 Feb 2007 13:00:00 GMT

I left a nationally known brand, Coldwell Banker, to have more control over my choices as well as being able to give my clients a well deserved break. Afterall it's the individual Realtor who is really selling the home not the brand name. Consumers are waking up and demanding more and more information thanks to the internet. It's just a matter of time before the old dinosaur companies are extinct. I now work for Premier Real Estate in Fountain Valley Ca. I pay a modest per transaction fee.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Dale — Fri, 09 Feb 2007 13:00:00 GMT

I am a broker offering discount services through our website. I think when you analyze the amount of time that is put into a transaction, you have to look at both sides. On the listing side, often the time spent is minimal since it is mostly marketing, however agents representing sellers have a fair amount of work to do with inspections and such if there are truly "doing their job".

RE:Are Real Estate Commissions at the Root of NAR Problems?

Lets be honest — Tue, 26 Dec 2006 13:00:00 GMT

90% of buyers would not use an agent if they had access to the MLS or some other listing and they were able to collect the 3% commission. Let's level the playing ground and see how many people really need agents. We did this with with travel agents. Today most people prefer to pick and book their flights themselves. For others, they use an agent and pay their fees. Why is the MLS so private. If I am selling something, I would want to open the market to everyone.

RE:Are Real Estate Commissions at the Root of NAR Problems?

Honest realtor — Sun, 29 Oct 2006 11:00:00 GMT

My 2 cents. I am a Realtor, I do not make millions of dollars and have fancy cars or a million dollar home. I drive a 1990 Volvo and have a very modest house. I do work Very hard for the people who choose to let me represent them, as buyers or sellers. The clown who says he can do an entire transaction in 5 hours is full of it, I have been to inspections that exceed 3 hours alone, and when it comes to making a closing go smoothly....I have been at some closings for more than 6 hours! Total 40+!