NEGOTATE A PRICE LOWER THAN THE MSRP

[shigman]

Yeah i mean if 6% is baked in, then it’s baked in to both the house you’re selling and the one you’re buying nulling it out so to speak. Assuming the house you’re buying is the same price as the one you’re selling.

 

[Booth9999]

What to talk about real bullsħit, how about the mortgage lenders, they take a huge chunk just for slinging papers and selling g you your loan. Brother in law makes over 300k and is a glorified paper pusher, doesn’t even have to show a house. At least for my 6% there is marketing, showing the house, and actually labor involved.

 

[GCATX]

It’s baked into the price of the new home. In others words, if the commission was 0 you could buy the house for 6% less. So, yes you are paying 12%

I don't think the 6% is baked in.

The house is gonna appraise for what it's worth, not what it's worth plus 6%.

People that sell without a realtor are not discounting 6%. Most people don't do this cause it's a royal pain in the a$$.

Think of the commission as an optional convenience fee.

 

[New recaros]

Bettie and Bob decide to upgrade. They list and sell the home for 700k and then buy a 1 million dollar pad. Bettie and Bob just created 102000.00 dollars in commission being paid.
I know that commission is negotiable and I totally believe in free markets. But real estate sales/commission is organized extortion. Unless something has changed, you can not get in the MLS book without a realtor.
Think about the insurance racket, you can go to insurance company websites and buy insurance. It’s their most profitable policies because of no commission to agents.
Realtors are agents selling access to the MLS book. If we want to lower home ownership costs, start here.

 

[New recaros]

The Redfin model you can sell for as low as 1% commission.

 

[GCATX]

Again, it's a convenience fee.
There are "for sale by owner" tools all over the web, facebook investor groups, you name it. If you want to buy a home and not use a realtor, you can find a seller that does not want to use an agent. Unfortunately, this really only works out for the seller. The house will sell for the same price but seller doesn't have to pay commission.

It's funny to me that people willingly use realtors then complain about what a rip off it is, then use them again.

But, I get it. 6% is a lot. If you search around it's easy to find an agent to work for 1% of the 3% on their side of the deal.

 

[New recaros]

My question to you is, Where do all the websites get the information that Bettie’s house is for sale? Hint, it’s three letters _ _ _
It’s a clear cut monopoly, IMO.

 

[smurfslayer]

Realtors are agents selling access to the MLS book. If we want to lower home ownership costs, start here.

What’s wrong with this? if you feel like it’s unfair, start a different system that’s better and less expensive.

My question to you is, Where do all the websites get the information that Bettie’s house is for sale? Hint, it’s three letters _ _ _
It’s a clear cut monopoly, IMO.

I have a different opinion. I am not a realtor, do not work in the real estate or associated businesses, but I do casually know some who do.

I drive by FSBO properties going to Hill Country all the time, and I think @GCATX has pretty well encapsulated this, though a bit of a ‘coarse’ description as a convenience fee.
One thing that you do gain access to by going through an agent is some experience that you might not otherwise have. For example, if you have no practical experience in construction, you might be able to spot obvious issues, like walls that aren’t straight (because the homeowner finished out the room), but you might not pick up on the floor that isn’t quite level, the wiring that isn’t current or has too many loads on a circuit, or major rehab where rooms aren’t connected in a sensical, efficient manner.

It’s also the convenience of navigating the required legal process for a binding property ownership transfer and that your interests are objectively represented. I need one to sell real estate for sure. When someone lowballs my house price, I tend to get a little ... we’ll call it impolite. My selling agents have handled that well and absorbed my profanity laden rants, and kept things on track.

YMMV, but IMO this field serves a useful and sometimes necessary function, and offers a tangible societal benefit. Unlike politicians.

 

[GCATX]

My question to you is, Where do all the websites get the information that Bettie’s house is for sale? Hint, it’s three letters _ _ _
It’s a clear cut monopoly, IMO.

If you want to be on MLS you gotta use an agent. There was a recent class action suit against National Association of Realtors about commissions. It's the larger brokerages that colluded to inflate commissions and they lost. So, commissions may go away. Who knows.

I can go right now to many RE investment groups I am in and post one of our houses right now, so can Bettie. I could also make an email flyer and blast it to every RE agent in the area, around 10,000, and offer a commission if they bring me a buyer. Email blast would cost me $30.

https://realestate.usnews.com/real-estate/articles/what-the-2-billion-realtor-lawsuit-means-for-homebuyers-and-sellers

 

[shigman]

Think of it this way....If moneys not going to a real estate agent. Its going to go somewhere, more than likely the government. Id rather they have it than some DMV style setup where you go in and give them 50K or whatever. Large money changing hands always has someone in the pot. Sure you can independently sell or buy, but its really the exact same thing as paying for the convenience of trading in a car and buying a new car at a dealer in one day. You take a loss more than selling private but deal with mountains less BS.