Why should the % commission be the same for a $200,000 and $2,000,000 house? Is the real estate agent working 10 times harder? In most cases both the seller's and the buyer's agents just push for the transaction to get completed, and don't really care (because there's no incentive) if their customers get the best price.
Once you know the formula for a partcular state and the local scene, the amount of time spent on a sale is the same a typical RE broker would invest .... almost nothing. A few phone calls, a couple of well placed ads perhaps, and a few well placed whispers that the property will be available. This formula is basically the same now, or as it was in 1992 during more difficult market conditions. The only real difference due to market conditions is the amount of time on the market and the final fiannacing arrangements: during difficult conditions I out performed a broker on time to sale anyway: the amount of my time to do things like this is about the same as a golf game and few golf games are worth 100K ..... well perhaps for you.
Sorry to disappoint alot of you folks, but the site isn't all it's cracked up to be typed at least five adresses of homes that I know of and have sold and each one had alot of incorrect information. Ran a search of homes in the Boston area. This site needs a lot more work in my eyes in order to be considered a decent source for info. I work in real estate everyday as a licensed realtor. "Don't put all your eggs in this basket".
Good question! Low priced properties are quick and easy to sell. A 2 million dollar home needs to be marketed a lot more and takes a lot longer to sell (like a year or more sometimes). Adds in the WSJ and large national publications can easily add up to 30 k or more in a year. Itâs not uncommon for Realtors who sell high end homes to spend a 100k and in the end the listing expires and they loose there time and money. Itâs a big risk!
According to the National Assoc of Realtors, the average agent in the U.S. makes about 37K. That's hardly overpaid. And if you've ever tried to sell your house yourself (I have), and had to put up with the idiots who want to low ball you and threaten legal action if a contract is not signed properly, you'll realize the value of a good agent. There'sa lot to be said for having a pro in the middle. And if you haven't worked with a good agent, they are out there. Also, it would be good to remind those who are so down on agents that they likely paid nothing when they bought their house, despite the fact that they probably busted some poor agent's butt. But now they are beefing because they need to pay on the way out. Go figure. Technology will never replace good, professional service.
The last two posts' arguments, favorable to the real-estate brokers, don't hold. I live in California and experienced first hand real-estate broker service and know what incomes they have. There's obviously a monopoly in this field, and the customer suffers. I expect this not to last much longer.
Do they have a monopoly? No law requires you to use a broker.... As for income, most brokers earn nothing for teh first year or so since they are paid on commissions. So they drag people to houses for months and months with no income. it is just like any service professional. If you need one and have a good one, the fee is worth it. If you need one and get an idiot, you are overpaying. If you do not need one, you do not use one.
They ought to be ashamed of themselves...Capitalism is not about this...RE AGENTS start showing the discount brokers listings or Die!
A statement like that simply reveals your ignorance of the marketplace. In any community in this country, there are a zillion ways to sell your house. If you choose not to avail yourself of a realtor and use the MLS then go right ahead. Nobody is stopping you, or any of the other homeowners on this site from selling your home anyway you want to. But the constant complaining about realtors not opening the MLS to everyone who wants access is plain stupid. Realtors built it, they pay for it, and they own it. You don't want to use it? Fine. Do your own thing. But enough crap about a "monopoly". And this stupid complaining about commissions! You don't want to pay 6%? Great. Then go with a discount broker or an internet listing site. You'll get what you pay for. But you expect someone to market your house and put up with all the idiots out there who want to jerk them around, including homesellers themselves...and you expect to get all this for free? Wise up to the real world. The sellers market is over.
I will tell you the fact that RE Agents in Denver, CO. will not show property from Help U Sell and discount companies like them...MLS or not...