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Why don't people like Realtors?

MaggieD

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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?
 

TheNextEra

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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?

Yes, I basically told two realtors to take a hike that I dealt with that were quite pushy and weren't listening to what we wanted. They wanted us to buy what THEY wanted to push.

For instance, my wife has MS and we cannot have a two story house. Simple reuqest right? Nope, the first 4 houses this realtor we had showed us were two story houses. I finally said I've had enough of her wasting our time. Her respsonse was, "Well, they are good deals and your wife looks like she can walk fairly well". :roll:

The 2nd realtor I told to get lost was very pushy on a house that we came to find out was being sold by another of his realtor "friends" that he wanted to help.

I'm not saying ALL realtors are this way, because the third one we got was very nice and attentive to what we needed. However, it only takes one or two bad realtors to put a bad taste in your mouth and cringe to deal with them like a car dealer.
 

ChrisL

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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?

I think it all depends on the person. Some sales people are honest and some not so much. Some people will say and do anything to make a sale.
 

Canell

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In my country Realtors are a real pain in the ass. They helped inflate the housing bubble after all, along with bankers and brainwashing media.
And they are sooo manipulating. I hope it's not like that over there. :)
 
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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?

Why is your fee based on the cost of the home? If you work the same amount to sell a house for $200,000 and one for $2 million, why do you get $6,000 for the former and $60,000 for the latter? In fact, it may be easier to sell the latter. I never quite understood the reasoning behind that.
 

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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?

Generally I do not like Realtors as a group. There are individual Realtors I like and respect, but there are more that I don't like than I do. My observations about the bulk of them sound as follows in no particular order:

--a lot of them are super arrogant/condescending. I assume a lot of people feel judged by them and people do not like to feel judged.

--Buyer's realtors tend to have a tendency to try to twist people's arms into buying more expensive homes than they are looking for to up their commission.

--Once the contract is signed, Realtors tend to have this FU attitude. At that point, all they want is their commission. Too many of them will not work to resolve issues that arise between contract and closing. Not all are that way. I know some who will bend over backwards to help resolve issues, but most I encounter will not lift a finger.

--There is too much self-dealing in the world of Realtors. The largest firm in my area is notorious for cherry-picking properties for their own staff, getting sellers to list for a low price and then putting it under contract with another Realtor in the firm who does rental property or flips without the public ever really seeing the listing.
 

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The times I've dealt with a Realtor, I've given them a price range that I wanted to spend. After they run a credit check, they have always tried to push towards towards a lot more expensive house, with the "but you can afford it!' statement.

Which to me, means they have no idea what I want and our discounting what I feel comfortable spending.
 

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My one and only experience with a realtor was not impressive. He came out, took a look around, seemed highly optimistic about how easy my place would be to sell, and placed a relatively high value on it. When it came down to reality, he didn't advertise it well at all, was difficult to reach by phone or in person, and seemed to forget about it once the contract was signed.
 

MaggieD

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Why is your fee based on the cost of the home? If you work the same amount to sell a house for $200,000 and one for $2 million, why do you get $6,000 for the former and $60,000 for the latter? In fact, it may be easier to sell the latter. I never quite understood the reasoning behind that.

In fact, sometimes we work harder to sell a $60,000 condo than we do to sell a $400,000 home. I think it's just one more "progressive" method of passing on the cost of doing business to those who can better afford to pay for it.

I like to say that Realtors have to shoot with an elephant gun in order to make a living. The "elephant gun" being the commission. In our market, a good Realtor is charging somewhere around 4.5% commission to sell a home, no matter what price range the home falls in, of course. Out of that 4.5%, the Realtor is paying 2.5% to 3% to the Realtor who brings the buyer to the Realtor who brings the eventual buyer to the property. That leaves 1-1/2% to 2% for the listing Realtor -- out of which, most Realtors are paying 50% of that to their broker. So, on a $300,000 home, the listing Realtor is actually getting $2250 to $3000 after all is said and done.

The Buyer's Realtor (the one who brings the client who eventually buys the home) will make, probably, $7,000 (at 2.5%) and give half of that to their broker...so after all is said and done, THAT Realtor will make about $3,500. That Realtor (usually) has been working with the buyer for up to a year (maybe longer) and will show, maybe, 50 or more homes to their client before they actually buy...if she stays with that buyer from start to finish. (My highest number was 85.)

For the money he/she earns, he will be available virtually 24/7 to serve his client. I've taken calls at 5:30 AM during the contract period as my clients begin to freak out about their deal (especially so with Sellers). The work is grueling...the stress is unimaginable.

A Realtor makes nothing if he doesn't sell property. No health insurance, no car expenses, no nothing. His broker charges him for office space, telephone and advertising. He gets nothing from his broker. When I was selling aggressively, I grossed about $110,000 a year after having paid my broker $23,000 of my commissions (That was the most I had to pay...most Realtors never reach that number, so just pay their broker 50% of their commissions all year long.) The expenses involved in being a Realtor, joining the real estate board, renting your key card, etc., etc., probably amount to $1,500 a year.

I don't know why I'm telling you this -- you didn't ask. Ha! I just thought it might be interesting. Most people don't understand how Realtors get paid and how much they earn. The greater majority of Realtors probably don't earn $45,000 a year after all's said and done. And the number of Realtors who get their licenses and fail is staggering.
 

nota bene

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In my 20's I worked for about a year with a group of successful realtors, and they really hustled. In answer to your question, Maggie, I think the perception is that they're pushy/aggressive.

BTW, it drives me crazy that realtors always cap the "R," and every single one I know does. :mrgreen:
 

longview

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I think, purchasing a home is very stressful for most people, and they do it so seldom.
Buyers are looking for the seasoned professional (that they are paying for)
to smooth the path somewhat for them.
To point out things that they may overlook, in what is a complicated process.
If it is done right all parties are happy.
Sometimes Realtors just do not seem to be that concerned in what you say you want in a house.
Sometimes the ethical lines get a little blurred also, like recommending an inspector
who just happens to be quite a bit more expensive than the other inspectors,
or a mortgage company, who approves, but the final paperwork is a half point higher.
Unfortunately the good ones and the bad ones all get the same commission,
and you may not know you have a bad one until too far into the process.
 
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In fact, sometimes we work harder to sell a $60,000 condo than we do to sell a $400,000 home. I think it's just one more "progressive" method of passing on the cost of doing business to those who can better afford to pay for it.

I like to say that Realtors have to shoot with an elephant gun in order to make a living. The "elephant gun" being the commission. In our market, a good Realtor is charging somewhere around 4.5% commission to sell a home, no matter what price range the home falls in, of course. Out of that 4.5%, the Realtor is paying 2.5% to 3% to the Realtor who brings the buyer to the Realtor who brings the eventual buyer to the property. That leaves 1-1/2% to 2% for the listing Realtor -- out of which, most Realtors are paying 50% of that to their broker. So, on a $300,000 home, the listing Realtor is actually getting $2250 to $3000 after all is said and done.

The Buyer's Realtor (the one who brings the client who eventually buys the home) will make, probably, $7,000 (at 2.5%) and give half of that to their broker...so after all is said and done, THAT Realtor will make about $3,500. That Realtor (usually) has been working with the buyer for up to a year (maybe longer) and will show, maybe, 50 or more homes to their client before they actually buy...if she stays with that buyer from start to finish. (My highest number was 85.)

For the money he/she earns, he will be available virtually 24/7 to serve his client. I've taken calls at 5:30 AM during the contract period as my clients begin to freak out about their deal (especially so with Sellers). The work is grueling...the stress is unimaginable.

A Realtor makes nothing if he doesn't sell property. No health insurance, no car expenses, no nothing. His broker charges him for office space, telephone and advertising. He gets nothing from his broker. When I was selling aggressively, I grossed about $110,000 a year after having paid my broker $23,000 of my commissions (That was the most I had to pay...most Realtors never reach that number, so just pay their broker 50% of their commissions all year long.) The expenses involved in being a Realtor, joining the real estate board, renting your key card, etc., etc., probably amount to $1,500 a year.

I don't know why I'm telling you this -- you didn't ask. Ha! I just thought it might be interesting. Most people don't understand how Realtors get paid and how much they earn. The greater majority of Realtors probably don't earn $45,000 a year after all's said and done. And the number of Realtors who get their licenses and fail is staggering.


I'm very glad you shared this with me ... learned a lot ... I appreciate it ... but I have to tell you, we have a home that is worth 1.1 million (California -- in NC, for example, the same home would go for 4-500,000), and I have a problem paying realtors $60,000 for a home that would sell in a heartbeat, and would sell itself (over 3000 square feet, 4 bedrooms, three baths, in an excellent location with great schools and where you can hear a pin drop outside it's so quiet, central air/heat, two fireplaces, great condition, etc.) ... you see my point? But, I didn't know everything you outlined and now I'm more sympathetic to realtors than I was before ...
 

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BTW, it drives me crazy that realtors always cap the "R," and every single one I know does. :mrgreen:

Yes, I was puzzled as well. I wrote "realtors" and the spell check didn't like this.
It's somewhat arrogant, imho. Doctor, technician, mechanic, nurse are all written with small letters. Who decided "realtor" should be otherwise?
 

MaggieD

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--Buyer's Realtors tend to have a tendency to try to twist people's arms into buying more expensive homes than they are looking for to up their commission.

If you buy a $300,000 home, your Realtor will earn, after all's said and done, $4,500. If you buy a $275,000 home, the Realtor will earn $4,125. That $375 difference? Doesn't mean anything. Your Realtor is not interested in getting you to do anything than buy a home. Any home. Sometimes we have to have come-to-Jesus conversations with buyers. "Since you don't like any of the kitchens in the 40 homes I've shown you because they haven't been remodeled, you're either going to have to settle, or you're going to have to increase what you're willing to pay." 'Course we don't say it quite like that, but that's the upshot.

--Once the contract is signed, Realtors tend to have this FU attitude. At that point, all they want is their commission. Too many of them will not work to resolve issues that arise between contract and closing. Not all are that way. I know some who will bend over backwards to help resolve issues, but most I encounter will not lift a finger.

Once your contract has been signed, attorney review issues have been settled, home inspection issues have been settled -- the next thing your Realtor's monitoring is to make sure your Buyer has their financing in place before the Financing Contingency comes up. That's all done in the background and may require a half-dozen calls you don't even know about. A good Realtor isn't going to upset you unless she has to, so you often don't know too much about what's going on. After that date's been met, your contract goes on "maintenance." Only thing that should have to be done from them 'til closing is to put out unusual fires -- which you hope you don't have. Good Realtors make sure they touch base once a week during that time. Some, like in any profession, are idiots.

--There is too much self-dealing in the world of Realtors. The largest firm in my area is notorious for cherry-picking properties for their own staff, getting sellers to list for a low price and then putting it under contract with another Realtor in the firm who does rental property or flips without the public ever really seeing the listing.

By law, a Realtor can't withhold a listed property from the MLS for more than 24 hours (I think it is). If a real estate office is the premier agency in the area, they may have 100 agents working for them. As they get close to listing a property, they may mention that kind of home it is at a sales meeting...without any identifying information for fear someone will end-run them and get the listing. When the home is finally listed, agents in that office may already have a number of buyers lined up to look at it, just waiting for it to go into the MLS. This is a good deal for the Seller. Don't know why you wouldn't like it.
 

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I'm very glad you shared this with me ... learned a lot ... I appreciate it ... but I have to tell you, we have a home that is worth 1.1 million (California -- in NC, for example, the same home would go for 4-500,000), and I have a problem paying realtors $60,000 for a home that would sell in a heartbeat, and would sell itself (over 3000 square feet, 4 bedrooms, three baths, in an excellent location with great schools and where you can hear a pin drop outside it's so quiet, central air/heat, two fireplaces, great condition, etc.) ... you see my point? But, I didn't know everything you outlined and now I'm more sympathetic to realtors than I was before ...
If you can find someone to buy your home, in most states any lawyer can conduct a real estate transaction.
They may even do it cheaper. The down side is you have to deal with a lawyer!!
 

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lol, we had this conversation this weekend. A friend just bought/sold (in process)

Why Realtor was not appreciated from his perspective:
1. Had all these bells and whistles they would do to help sell the home, professional photography, video, but they charge a little more for this first class service...
2. House sold after listing without any pictures within a few days...
3. They came to take pictures anyway (in case the deal falls through), the realtor used his phone camera (see professional above)

Basically he didn't have MaggieD was his problem ;)

My personal experience has been mixed, but the last realtor we used was great all around, and those who we recommended her to that used her thought it was excellent too. Like most things, if you find someone good, hold onto them, because the market is filled with average...
 
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MaggieD

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In my 20's I worked for about a year with a group of successful realtors, and they really hustled. In answer to your question, Maggie, I think the perception is that they're pushy/aggressive.

BTW, it drives me crazy that realtors always cap the "R," and every single one I know does. :mrgreen:

Yes, I was puzzled as well. I wrote "realtors" and the spell check didn't like this.
It's somewhat arrogant, imho. Doctor, technician, mechanic, nurse are all written with small letters. Who decided "realtor" should be otherwise?

Spellcheck doesn't recognize "the plural." I noticed that. The reason Realtor is capitalized is that it's a copyrighted designation indicating a Realtor is a member of the Board of Realtors -- subscribes to their code of ethics, their disciplinary action, etc. And please, dear GOD, don't pronounce it Reelators. OMFG! Ha!

I'm very glad you shared this with me ... learned a lot ... I appreciate it ... but I have to tell you, we have a home that is worth 1.1 million (California -- in NC, for example, the same home would go for 4-500,000), and I have a problem paying realtors $60,000 for a home that would sell in a heartbeat, and would sell itself (over 3000 square feet, 4 bedrooms, three baths, in an excellent location with great schools and where you can hear a pin drop outside it's so quiet, central air/heat, two fireplaces, great condition, etc.) ... you see my point? But, I didn't know everything you outlined and now I'm more sympathetic to realtors than I was before ...

Every home seller I've ever worked with has thought their home was an easy sell. It generally IS -- but only if it's priced right. And getting the price right often requires testing the market at a higher price. The higher the price of the home? The more testing likely to be needed.

Aside from the fact that most home sellers think they know what their home is worth -- and that what they think is usually high -- your REALTOR often isn't sure. It's not a science, after all. And once a seller is 'married' to the price their home is listed at? If it's too high? OMFG! It can take months for a seller to finally give the okay for a price adjustment.

My best Door County friend listed her home for sale for $1.5 million -- an absolutely gorgeous, beautiful, high-end home overlooking Green Bay from high on a hill. They couldn't sell it and finally -- after a year -- he called me wondering what the HELL his Realtor was doing wrong. I told him there was only one reason on earth his home wasn't selling: It was overpriced. "No...that can't be it," he said. :rofl -- Two years later -- two YEARS later -- he inched his selling price down to where it got under $1 million...having changed Realtors three times in the process because he blamed them. After a year at $999,999, he sold it for $780,000. Begrudgingly.

Price cures everything: Location. Condition. And priced too high.
 

Superfly

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I've never been a fan of realtors because of the smugness and condescension that they usually come with. I've dealt with them before, and for the most part, they were always nasty, rude and snotty. I used to think about becoming a realtor, only because I'd want to be the one realtor in the area that was actually nice to people. I can't speak for you, Maggie, because you seem extremely nice, but most realtors here, where I live, are smarmy and nasty and uppity. I actually had a couple of realtors in NY that flat-out refused to show me a house because I didn't come with a pre-approval letter from the bank. I explained to them that it was going to be a cash purchase, and I wasn't going to need financing, but they still refused.

I lucked out down here and found one that I absolutely love. She comes to our house to visit, to sit around the fire pit and drink wine with us. She helped us out a lot, and got us exactly what we wanted, where we wanted it. She's the only one I've ever dealt with, that I actually liked.
 

MaggieD

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lol, we had this conversation this weekend. A friend just bought/sold (in process)

Why Realtor was not appreciated from his perspective:
1. Had all these bells and whistles they would do to help sell the home, professional photography, video, but they charge a little more for this first class service...
2. House sold after listing without any pictures within a few days...
3. They came to take pictures anyway (in case the deal falls through), the realtor used his phone camera (see professional above)

So let me get this straight. He liked the price the home was listed for. It sold in a few days. And he's unhappy. Go figure. Ha! As to using his camera phone for pictures, here in Chicago, our second major newspaper has fired its photographers -- requiring reporters now to take pictures on their IPhones. They take damned good pictures!!

His Realtor was right to take those photos in case the deal falls through. Exactly right thing to do.
 
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If you can find someone to buy your home, in most states any lawyer can conduct a real estate transaction.
They may even do it cheaper. The down side is you have to deal with a lawyer!!

No problem ... I've been married to an attorney for 30 years. I have experience.
 
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Spellcheck doesn't recognize "the plural." I noticed that. The reason Realtor is capitalized is that it's a copyrighted designation indicating a Realtor is a member of the Board of Realtors -- subscribes to their code of ethics, their disciplinary action, etc. And please, dear GOD, don't pronounce it Reelators. OMFG! Ha!



Every home seller I've ever worked with has thought their home was an easy sell. It generally IS -- but only if it's priced right. And getting the price right often requires testing the market at a higher price. The higher the price of the home? The more testing likely to be needed.

Aside from the fact that most home sellers think they know what their home is worth -- and that what they think is usually high -- your REALTOR often isn't sure. It's not a science, after all. And once a seller is 'married' to the price their home is listed at? If it's too high? OMFG! It can take months for a seller to finally give the okay for a price adjustment.

My best Door County friend listed her home for sale for $1.5 million -- an absolutely gorgeous, beautiful, high-end home overlooking Green Bay from high on a hill. They couldn't sell it and finally -- after a year -- he called me wondering what the HELL his Realtor was doing wrong. I told him there was only one reason on earth his home wasn't selling: It was overpriced. "No...that can't be it," he said. :rofl -- Two years later -- two YEARS later -- he inched his selling price down to where it got under $1 million...having changed Realtors three times in the process because he blamed them. After a year at $999,999, he sold it for $780,000. Begrudgingly.

Price cures everything: Location. Condition. And priced too high.

we refinanced recently ... twice actually in the past 4-5 years, and both times it was appraised for what I said ... but your point is well taken ...
 

MaggieD

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we refinanced recently ... twice actually in the past 4-5 years, and both times it was appraised for what I said ... but your point is well taken ...

Value of a refinancing appraisal is often very different than what a buyer will pay for it.
 

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When I first became a Realtor, I was shocked to find that Realtors rank right up there with used car salesmen and lawyers for disdain. I've never understood why.

Do you agree? If so, why do you think that is?

I don't have any disdain for realtors... Its a job.

IMO, some people think someone that is selling a product with a negotiable price is trying to rip them off - especially when the person selling it works off commission...

I can see used car salesman not being liked - but realtors not so much considering a house needs to be inspected before its sold to ensure safety. So its pretty impossible to buy a "lemon" house.

Lawyers are unethical. Their entire profession is based on lying...

I was actually thinking about getting a real estate license because once this economy gets better (if ever) all these vacant properties will be selling left and right.
 
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