Is it the best way to pay agents
They complained (agents don t do enough work to merit that kind of money), complimentedpatagonia south america climate agents (try selling yourself and find out how much work it really is), and asked questions. Some clearly thought a lot about the question before they responded.
Among the comments were suggestions and advice for homebuyers and sellers trying to figure out whether to use an agent, or buy or sell by themselves.
OK, before every agent in the Seattle area gets all hot and bothered, let me preface this by saying that I ve never bought or sold a house without an agent. I ve never negotiated a lower commission, just let the closing agent subtracpatagonia evermore shoes reviewt the number from the bottom line.
But I d like to hear why a home sale is worth a flat 6 percent.
I know the listing agent and broker share 3 percent, and the buyer s agent and broker share the other 3 percent. So why should the seller pay the whole 6 percent?
Some believe that cut patagonia better sweater beanie ukrate agents deserve less money because they do less work and that full service agents deserve 6 percent commission because they provide full service. But I want to know why a buyer and a seller have to pay the full commission for every full service agent, regardless of qualifications, experience and service provided.
Here are some of the comments, in no particular order.
Our lawyer used to be a Realtor/broker, so in addition to understanding the law, he also understands agents. It is also important that you make sure the listing agent is willing to work with you in this manner and that you clearly stipulate your expectations upfront and document them in your offer.
The seller has the money available from the profit of the sale. Many first time patagonia super guide pants reviewhomebuyers do not have the money to papatagonia evermore shoes review3y an additional 3 percent odiscount patagonia hatsn top of the down payment, closing costs, inspection, appraisal, etc.
No matter what you are buying, 6 percent markup doesn t sound like very much whether it s insurance, toothpaste, whatever. Especially in a difficult market, agents earn their commissions because most homes are not selling within three weeks; they are sitting for 90 days or more. Agents are sppatagonia evermore shoes review0ending far more time on marketing and other efforts.
Keep this in mind: If an agent gives up part of his or her commission right up front and this person is supposed to be your skilled negotiator, what is he or she going to give up when negotiating the price for your house, whether you re bupatagonia insulated better sweater hoody mens closeoutying or selling?
After a number of real estate purchases, sales and leases, I am not universally happy with the performance of full pmens patagonia better sweater hoody tiba stripericed agents. I found that a potential $200,000 commission meant little to an agency that had larger fish to fry. (Lesson: Scale your choice of agent tnew $90 patagonia mens nine trail vesto the size transaction you pursue.)
Commissions are always negotiable. Always.
Sellers should pay listing agents, and buyers should pay buyers agents, but it can be argued that it all comes out of the price of the house anyway.
Let s look at the math in this example:
Agents get $24,000, or 24 percent of the seller s equity. Then the county takes 2 to 2.5 percent so subtract another $8,000, leaving the seller $68,000. If the sellers took out a second mortgage to get repairs done and do some painting or staging for the sale, subtract another $8,000 (roughly), and we re left with $50,000 profit.
So the agents and brokers take home $24,000 in commission while sellers get $50,000 profit neapatagonia evermore shoes review2rly 50 percent of the take.
Agents and their commissions might have made sense in the 1950s for people moving across country who didn t know a thing about neighborhoods, crime, homes or local prices. Now, all of these can be researched online and comps pulled up.
It s a dinosaur industry, and the players are doomed.
Traditional commission has been 6 percent for quite a while. Meanwhile, prices for homes have more than doubled in the last five to seven years, effectively doubling commissions. Most do less work because of the Internet tools out there.
I wish my salary doubled in five years for doing less work at the same job.
The top agents are not likely to discount their fees. They don t have to. They are very, very good at what they do.
Agents have a duty to put the client s best interest first,patagonia everlong review 65 even if that includes advising the client to back out of the deal. A good agent will represent their client s best interest no matter how much or how little the commission.
While unrepresented sellers like to believe they are knowledgeable on pricing, marketing, negotiating, etc., studies indicate that they probably aren t.
If a property is overpriced when listed, it will take longer to sell and sell for less (up to 10 percent less) than if priced, marketed and advertised appropriately from the start. It gets stale and shopworn. Nepatagonia evermore shoes review1w buyers ask, What is wrong with it? when it is finally priced appropriately.
Granted, some agents are not worth the commission and many buyers and sellers have completed a transaction with a bad tastepatagonia guide pants pants in their mouth. I would bet the clients of good agents would say the service based on the agent s skill and knowledge was well worth the compensation.
Who really is the greedy one in a real estate transaction? The seller.
I don t think the 6 percent should be there anymore. People should just get paid for their time. If one agent is better than another, then the better agent should get a higher rate.
