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Economics & Trade

myDeaconmyhand said:
Pretty sure it has to do with buyers having to pay buyers and sellers agent fees.
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It's the opposite I think (sellers pay agent fees out of revenue from home sale), but I guess that makes sense. You can't really lower the % you pay the buyers agent because buyer agents would be less incentivized to show your house in THEORY (?)
 
As someone currently going through selling a house I actually think my listing agent has gone above and beyond to earn his %. He provided a shit-ton of value through his market expertise on timing + listing price and then basically project managed getting the house listing ready (hauled away junk, hired people to replace fixtures, hired painters, cleaners, and landscaping etc.). He even floated the cost of all of that himself so we don't have to settle until money is in our pocket from closing (in addition to completely covering the cost of landscaping).

He also did a great job as a buying agent for me (helped me be pretty cutthroat with negotiations and got about 5-10k lower than I was prepared to ask for, got lots of stuff handled as part of inspection), but probably not quite as worth the 3% fee in that case. I do think if he had been charging me that fee outright I would have offered less for the house obviously.
 
Keep in mind that the realtor only gets half of the fee. So if it's a 6% commission, the buyer's agent gets half and the seller's agent gets half, or 3% each. Then the Broker's company takes half of that, so the actual person you're working with gets 1.5%.

In other words, $1 million house equates to a $60K brokerage fee, split into $30K each to the buyer and seller brokers, and they each get $15K.
 
unless i come to buy your house without a broker!

the seller-broker relationship makes sense to me, but the buyer-broker relationship is weird

my attorney did most of the work on my behalf, I didn't need my broker to walk the home with me, redfin etc. make the broker's MLS listings access pretty meaningless, and he incentivized for me to buy a more expensive place -- I just needed him to be able to access the lockbox to tour the place

sure, some brokers may have insider info on off-market listings, or have a good idea on how to narrow down your search, but the compensation structure should be way different: I should just pay you some agreed upon amount for whatever services I need, not a percentage of the sale price
 
Yeah, it's just that easy. Now figure in that the actual median listing price in Mecklenburg County is $493K, sales volume is down 20% from a year ago, and you have to actually close the transaction to get paid.
 
they make you do like 200 hours or whatever to get your license but I bet I could pass the licensing test with a couple hours of studying

(I misspell "license" -- swapping the "s" and "c" -- more often than I spell it correctly)
 
Biff Tannen said:
Yeah, it's just that easy. Now figure in that the actual median listing price in Mecklenburg County is $493K, sales volume is down 20% from a year ago, and you have to actually close the transaction to get paid.
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Wow what stress
 
The idea that they do nothing is pretty silly, especially if you have no idea what you’re doing as a home buyer.
 
Biff Tannen said:
The idea that they do nothing is pretty silly, especially if you have no idea what you’re doing as a home buyer.
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i'm not saying they do nothing

i'm saying the compensation model is dumb

and that my lawyer did way more for a lot less money than my agent
 
Nothing stopping you from not employing a buyer’s agent and negotiating directly with the seller’s agent, even for a reduced commission, while paying a lawyer whatever you want. USA use your incredible market knowledge to negotiate the best deal and understand all the disclosures, etc. It’s not like you have your own job or anything.
 
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