[GizmoWhiskers]

Originally Posted by vintageogauge

A good listing agent knows or gets to know the owners, their habits, how they treated their home, what improvements they made even the small seemingly insignificant ones, they provide quality photography and if the owner is not happy they change the photos, they will advise how to make the home more impressive, help with a little staging or suggest some changes, provide comparable recently sold figures and information on similar homes on the market, set up a realtor open house, as well as public open houses, the prepare the description for the listing, and they provide advertisement. They also show the home to their prospective buyers and those that make contact with them due to the listing and advertising. That is what a "GOOD" listing agent does. Now comes the buyers agent if not sold by the listing agent, he/she brings their client and attempts to convince them that this is the home for them and to make an offer. In my opinion there is value to having a "GOOD" listing agent, they are at least as important if not more important than the buyers agent. Just one man's opinion from past experiences.

I had a Villages sales listing agent that came recommended by a friend. His house sold itself in a day during the covid gold rush mass exodus to Florida phenomenon. I THOUGHT she was good based on my friend's experience with her. Boy was I wrong. There is no way to know "GOOD".

This villages sales agent realtor attempted to slip in a 6 mos sales contract as if I were oblivious to contracts. She did nothing but trash talk my 3 yr old home in DeLuna at the only open house SHE did.
Note to Village realtors, neighbors do go to open houses to check up on you!

Closing number two she had someone else do for her while she was on vacation. The last of her obligated three, no one showed up to do. She was always a day late on connectivity as well.

It made me sick to pay her commission at closing. She fought with me on price from the get go. Tried to convince me a house at the southern tip of TV new area at the time , which was on the north side of the turnpike at 470 was worth more than one a mile from Brownwood via golf cart. Wake up call... incorrect!!

Glad I stuck to MY guns relative to her obnoxious, condiscending pushiness, I did great. It astounded me that after 5 days she thought I should drop my price. Deeply regretted using her as an agent as the last thing a seller needs is the stress of a useless agent.

The Buyer agent is the one who brought the sale. Who needs a selling agent other than as a data entry clerk for the website. I didn't. Mine was useless! Was glad to hear she was moving out of T V and state. Saves other sellers in T V from a lot of frustration!

[oneclickplus]

FSBO + appraiser + title company is all you need. 6 houses bought / sold since 1984 and haven't paid any realtor commissions as a buyer or seller. 6% commission is ridiculous especially as prices have risen. Would you pay a $3000 commission to sell your used car? There is simply no reason that any party (or parties) should collect $36000 on a $600,000 home sale. That's most of an annual salary for many people.

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?

[JWGifford]

It would be interesting to hear from one of our British neighbors. My understanding is they pay significantly less fees in Britain. Wondering if there is a difference in the level of service. Just curious.

[DrHitch]

Wow...long thread....basically a world of caveat emptor....do your shopping as a seller or a buyer....

What I really want:
1) as a seller, I always do my own home inspection to uncover any problems in advance (DIY fix). Hand that report to the buyer avoids nit-pick price reduction.

2) as a seller, I won't pay 6% in the modern age of online listings. The agent only has to take (sometimes shoddy) cell phone pics and enter onto the MLS. It's more work on buyer's side to setup a search filter

3) as a buyer, I don't need an agent to help me search (some may do). Again, things have changed with realtor.com (don't believe Zillow). I want to deal directly with the seller with minimal back and forth. The title process is now a lot simpler.

Bottom line: the traditional sales model is broken. NAR agents need to change methodologies.

Me? Former manager of real estate software listing business for print media (now a dead market)

[MikeVillages]

The % of the sold price used for the realtor’s commission has always been negotiable and often been based on the market & region.

Hot markets with little supply of desirable homes with rising prices & lots of buyers often have lower commissions. A homeowner should always interview several realtors before signing a contract. During the interview, the homeowner should ask if the commission is negotiable. If the contract includes both buyer’s & listing realtors (as it has been), the commission should be equal between the two realtors. IMO

[defrey12]

Originally Posted by retiredguy123

Apparently, the OP thinks that any commision paid to an agent just reduces the amount of money that goes to the seller. If that is true, then a seller would be foolish to pay any commission. Also, regarding a buyer's agent, as a seller, I would never allow a buyer's agent to receive any money from my side of the settlement statement. If a buyer wants to be represented by an agent, the buyer would need to negotiate and pay their own commission or fee.

So, if you’re selling your home for “X” and agree to a 6% commission with your listing agent, why do YOU care if s/he agrees to split that commission with someone who brings you a viable buyer? That is, a BUYER’s agent. Your home still sells for “X” and there is NO extra $ out of your pocket. Again, WHY DO YOU CARE !? It’s only fair that s/he gets paid so why do care how—it doesn’t affect you. That buyer probably couldn’t afford your home if they had to come up with another $12000 out of pocket. All this lawsuit does is diminish the buyer pool…especially first-time homebuyers. It is NOT going to make homes more affordable as they claim. Why? Because you’re still going to sell your house for as much as you can regardless of commission!

[retiredguy123]

Originally Posted by defrey12

So, if you’re selling your home for “X” and agree to a 6% commission with your listing agent, why do YOU care if s/he agrees to split that commission with someone who brings you a viable buyer? That is, a BUYER’s agent. Your home still sells for “X” and there is NO extra $ out of your pocket. Again, WHY DO YOU CARE !? It’s only fair that s/he gets paid so why do care how—it doesn’t affect you. That buyer probably couldn’t afford your home if they had to come up with another $12000 out of pocket. All this lawsuit does is diminish the buyer pool…especially first-time homebuyers. It is NOT going to make homes more affordable as they claim. Why? Because you’re still going to sell your house for as much as you can regardless of commission!

Because a seller is paying the broker for legal representation. A buyer's agent does not represent the seller. An agent who is representing a buyer is not required to negotiate the best terms and price for the seller. As a seller, who is paying a 6 percent commission, I want every licensed agent who is involved in the negotiation of the sale to be representing me, the seller. That is what I am paying for. I don't care how the commission is split, as long as all of the commission goes to agents who represent me. And, I don't believe that an agent who represents the buyer is capable of negotiating on behalf of the seller and to get the best price for a house.

[Bay Kid]

Leave it to the media to attempt to ruin peoples livelihood with lies and deceit, then the govern/pres to promote price fixing.

[ellenwelsh]

All this discussion seems to forget the broker. The commission is paid to the broker and the broker splits their “half” with the agent. That split may be 50/50 or not. Many companies work on graduated splits where the agent receives more of their 3% based on cumulative sales. Novice agents may start at 30% of 50% whereas seasoned, high volume agents may be paid as much as 90% of 50%.

[thevillagejr]

Originally Posted by JMintzer

You missed the part where the inspector (who normally gets $500) also lists the home (and then gets another $500). Both paid for by the seller...

Depending on the state,
area, company, appraisers do not sell "123 Main Street" and appraise "123 Main Street" it is or could be a conflict of interest.

[Marine1974]

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?

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.

[Jcicales]

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?

And I am sure you were compensated in your profession- whatever that was. Do you take into consideration not all buys can just drive by- maybe they are out of state- in this case agent may spend months find a home all the while doing the drive bys - taking videos- maybe taking months to FINALLY make a sale of $12,000, their broker may get half ($6,000), agent then pays taxes, mls fees, errors and omissions insurance and wear and tear ON car gas driving around PLUS this may take a few months to find that house and hopefully make a small commission to feed their family. ??????

[Marine1974]

Originally Posted by msilagy

There's so much more the listing agent does.....this post is short sided.

I would be curious what you think all the things a listing agent is required to do other than hire a photographer , list house on MLS and hold a 2 hour open house ?

[Marine1974]

Originally Posted by Jcicales

And I am sure you were compensated in your profession- whatever that was. Do you take into consideration not all buys can just drive by- maybe they are out of state- in this case agent may spend months find a home all the while doing the drive bys - taking videos- maybe taking months to FINALLY make a sale of $12,000, their broker may get half ($6,000), agent then pays taxes, mls fees, errors and omissions insurance and wear and tear ON car gas driving around PLUS this may take a few months to find that house and hopefully make a small commission to feed their family. ??????

Not my problem. Never again would I use a realtor to list my house . I would be willing to pay a buyers realtor agent 2 possibly 2 and a half percent commission.
Think about all the houses that sold in a day when the market was hot and buyers were paying
over asking price . How much work did the listing agent do for $12,000 ?

[retiredguy123]

A seller has a lot of leverage when negotiating a listing contract. I never accept the broker's boilerplate contract. At a minimum, I want a written marketing plan for selling my house, a 3 month contract (not 6 months), and the right to fire the company if I lose confidence in them, with no penalty for doing so. If the broker won't negotiate the contract, I will hire another broker. Also, I want to hire one of the most successful agents in the company. Why hire an inexperienced sales agent when they all charge the same commission? And, I want the agent to recommend the listing price. That should be their job.