Quote:
Originally Posted by APovi
NAR - Much ado about nothing? Realtor's Commissions.
Thanks to the many people who have asked me about the proposed changes in Real Estate commissions this summer.
The answer isn't very complicated.
Regardless of the 'rules', Realtors predominantly charge Home-Owners/Buyers a 6% commission based on the eventual sales price of the home.
Some say it's the Seller who pays because the final 'Net-To-Seller' is reduced by, for example $24,000 on a $400,000 sale.
Others say that it's the buyers who pay, because they are paying $24,000 more than they would for a direct "Seller-To-Buyer" sale.
For home buyers and sellers the proposed changes are a simple reminder that you set the commissions.
In the typical transaction, sellers pay a Realtor $12,000 for the simple process of typing the listing info into the local Multi-List.
(This, by-the-way, is less work than an Appraiser does for $500.00).
The other $12,000 goes to which ever Realtor makes the sale.
Is there a significant, mandated to change?
NO!
The plan is to prohibit the Listing Realtor from typing in the commission split they are offering to the Realtor who makes the sale.
That's it!
The other side of the deal is to force buyers to sign an agreement with their Realtor. But that agreement can simply say that their Realtor is being paid, just as they always have been.
Is there any likely positive outcome?
In my opinion there could be if Owners/Sellers would wake up!
Its the selling Realtor who does the work and gets the sale.
A 'Listing Factory' gets a $12,000 fee for a $500 job.
What to do?
When your listing expires, maybe there is.
Ccall a State Certified Residential Appraiser who is also a Realtor.
Give them $1,000 for a basic appraisal and entry of the data into the Multi-List.
Whomever gets you a buyer gets, the (3%) $12,000 commission.
The Seller saves $11,000.
The buyer saves $12,000
Who's the loser?
Not our Home Buyers and Sellers.
That's who we should be protecting isn't it?
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I had a bad Realtors , a married couple . list my house back in Chicago. . Big mistake , should have sold it by owner myself .
First of all they listed my house
on the MLS on a Friday at 10:30 pm and planned for an open house on Sunday. They sent a young man around with flyers Sunday morning about the open house to all my neighbors . So no real traffic of buyers just neighbors not interested in buying for only 2 hour open house . They Over Priced the house , no appraiser. There apparent plan was to do nothing and let other realtors bring a buyer . They never brought one prospective buyer client of their own . Basically didn’t do a lot for me other than pressure me to reduce price by $25,000.
I suggested they go to the monthly realtor association meeting where other realtors , investors, contractors etc meet and network. I was told they couldn’t go .
My house had a VA mortgage ( due to divorce) 30 year fixed at 2.399 % assumable. I sent them contact information on every VFW and American legion in the Chicago area attention post commander alerting them to help a fellow veteran out and assume
a 2.399% mortgage and buy a large 4 bedroom 2 bath house in a
good school district. They told me they couldn’t discriminate????
I would get a text from the MLS
requesting a showing sometimes same day which required 2 hours of prep work on my part .
In the end they started pressing me to drop the price another $25,000 which I replied if you drop
your commission rate and was told they had two kids in college and couldn’t do that , but I could cancel and pay them a fee per our contract which I said no chance of that I’ll ride out the rest of the 6 month contract before I would give them a dime . In the end , it was a good thing my house didn’t sell as I am now I am remarried and every time I pay my monthly mortgage my balance goes down $900 . Like an investment.