Making Reduced Agent Commission Adjustments

[Evincere]

residentialguy said: ↑
well....if the home magically marketed itself correctly and legally....

I didn't know that it was illegal to market your own property and violate a law.........

Exactly. But hey, maybe Minnesota is special and things are different and FSBO's are illegal?.

The Realtor brand markets itself very well but the truth is an 18 year-old just out of high school with no formal training can become a Realtor in about two months is no secret. We have a ton of new agents here now that are absolutely clueless. They couldn't sell ice cubes in Texas, but they can list a property

Don't ya know that once one is officiated as a Realtor, professionalism, experience and this unfathomable ability to legally market any property is bestowed by the magical NAR membership lapel pin that automatically adds 6% as a service fee to the market value of bricks and mortar.

So on a $300,000 sale at 6% the commission or "service" fee of $18,000 which is paid directly to the Realtor at closing is either part of the down payment, being put down as a deposit, or financed by the lender for the duration of the loan term as value added to the bricks and mortar.

 

[residentialguy]

The Realtor brand markets itself very well but the truth is an 18 year-old just out of high school with no formal training can become a Realtor in about two months is no secret. We have a ton of new agents here now that are absolutely clueless. They couldn't sell ice cubes in Texas, but they can list a property.

In 2 months, I make $10k and then you want me to spend another 2 months showing my house? I lose 20k for a FSBO. Time is money and learning to sell my house to avoid paying a realtor 3 percent is idiotic. Having a good experienced reputable agent trumps FSBO all day. And legal? Yes, contracts are legal docs. If you are selling FSBO, I suggest you have a lawyer look the docs over. I don't know many free lawyers.

 

[TRESinc]

In 2 months, I make $10k and then you want me to spend another 2 months showing my house? I lose 20k for a FSBO. Time is money and learning to sell my house to avoid paying a realtor 3 percent is idiotic. Having a good experienced reputable agent trumps FSBO all day. And legal? Yes, contracts are legal docs. If you are selling FSBO, I suggest you have a lawyer look the docs over. I don't know many free lawyers.

so marketing a house for sale takes 40-50 hours a week, every week, for 2 months? not sure i have ever met an agent who can only list one house every two months due to the workload.

 

[PushinValue]

Has anyone made these adjustments? If yes, under what circumstances and how?

Yes. When a property sells 2% below list price 3DOM and I call the listing agent to find out why. "The buyer was an agent representing themselves and waived their 2% commission"

Another example, property sells at 97.5% lp cash in a few days. I call up the listing agent who tells me the buyer paid their agent 2.5% commission in exchange for the lowered price (all cash buyers should do this to lower property tax rate)

 

[PushinValue]

I'm sorry, I'm referring to those cases when the buyer is an agent and they offer a lower price with no commission, which does affect the sale price.

$ for $ in virtually all circumstances.

 

[residentialguy]

so marketing a house for sale takes 40-50 hours a week, every week, for 2 months? not sure i have ever met an agent who can only list one house every two months due to the workload.

No, but you have to learn how to. How long does it take to get your RE License? Would you hire a RE Agent with 2 months experience? no... I wouldn't either. I'd want an agent with over 2 years experience. Same applies to me if I were to do a FSBO. And then you have to be available to show. So like I said, I'll make more money working and hiring a good experienced RE Agent...that's the most bang for the buck. I make a lot more money in 2 years (required experience for a marginal RE Agent). I would require that for myself.
FSBO....