MaggieD
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- Jul 9, 2010
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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?
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?
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?
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.
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.
BTW, it drives me crazy that realtors always cap the "R," and every single one I know does. :mrgreen:
--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.
If you can find someone to buy your home, in most states any lawyer can conduct a real estate transaction.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 ...
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?
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 ...
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)
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!!
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 ...
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?
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