Comments on: Is Your Realtor Looking Out for Your Best Interests? http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx An Offbeat Look at what Makes the World Go Round Wed, 28 Jul 2010 02:18:36 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Advanced Personal Finance » Blog Archive » Carnival of Personal Finance #116 - NSA Edition http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-546 Advanced Personal Finance » Blog Archive » Carnival of Personal Finance #116 - NSA Edition Tue, 04 Sep 2007 01:43:18 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-546 [...] As if that wasn’t enough, Jason of Smart Money Daily wants to know, is your realtor looking out for your best interests. [...] [...] As if that wasn’t enough, Jason of Smart Money Daily wants to know, is your realtor looking out for your best interests. [...]

]]> By: Jason Dean http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-537 Jason Dean Fri, 31 Aug 2007 17:49:42 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-537 Cindy - It's not a matter of whether holding out for a better offer is sound advice. Obviously, it is sometimes and it isn't others. The issue is whether Realtors share the same goals as you do, as a homeseller, and the answer is NO. For every $1,000 your sale price drops, your Realtor is sacrificing $15. You're sacrificing $940. And that $940 ALL comes out of your equity, which can quickly disappear at the rate of $15/$1,000 to the Realtor. The Realtor doesn't feel the pain proportionataley. His interest is to sell fast and invest as little time possible in the sale of your home. I say this as the husand of a Realtor. This is the reality of realty. Cindy – It’s not a matter of whether holding out for a better offer is sound advice. Obviously, it is sometimes and it isn’t others. The issue is whether Realtors share the same goals as you do, as a homeseller, and the answer is NO. For every $1,000 your sale price drops, your Realtor is sacrificing $15. You’re sacrificing $940. And that $940 ALL comes out of your equity, which can quickly disappear at the rate of $15/$1,000 to the Realtor. The Realtor doesn’t feel the pain proportionataley. His interest is to sell fast and invest as little time possible in the sale of your home. I say this as the husand of a Realtor. This is the reality of realty.

]]> By: cindy@staged4more http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-535 cindy@staged4more Wed, 29 Aug 2007 23:12:08 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-535 Hello Theses are great resources for for sale by owners. I also like that you broke down the commission structure. In a competitive market, the agents actually may reduce their commission to 5% just to win the listing. Not to mention, after all the marketing expenses and ad costs, overheads, gas, open house signs and food, etc., I doubt the agent actually can receive a full 1.5%. I don't know if holding out for a better offer is a sound advice, because like you said, the current marketing the offers are going to be low. Who knows when you are going to see another qualified offer? From my experiences (I am a real estate stager), the longer a listing sits on the market, the more likely it is going to take a price reduction. In my market, San Francisco bay area, a starter home starts at $800,000, you are talking about at least $10,000 in price reduction. I don't know if holding out and wait for the better offer may be the best idea. I feel that an experienced realtor should be able to advised his/her client based on the client's best interest. If they are in a hurry to sell, carrying two mortgages, they are probably not in the best position holding out. But if they are not in a hurry to sell, they have the luxury to wait for better offers. Cheers, Cindy Hello

Theses are great resources for for sale by owners. I also like that you broke down the commission structure. In a competitive market, the agents actually may reduce their commission to 5% just to win the listing. Not to mention, after all the marketing expenses and ad costs, overheads, gas, open house signs and food, etc., I doubt the agent actually can receive a full 1.5%.

I don’t know if holding out for a better offer is a sound advice, because like you said, the current marketing the offers are going to be low. Who knows when you are going to see another qualified offer? From my experiences (I am a real estate stager), the longer a listing sits on the market, the more likely it is going to take a price reduction. In my market, San Francisco bay area, a starter home starts at $800,000, you are talking about at least $10,000 in price reduction. I don’t know if holding out and wait for the better offer may be the best idea.

I feel that an experienced realtor should be able to advised his/her client based on the client’s best interest. If they are in a hurry to sell, carrying two mortgages, they are probably not in the best position holding out. But if they are not in a hurry to sell, they have the luxury to wait for better offers.

Cheers,
Cindy

]]> By: Jason Dean http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-532 Jason Dean Wed, 29 Aug 2007 20:46:51 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-532 Thanks for the link and the comment, Eric. That looks like a great resource! Thanks for the link and the comment, Eric. That looks like a great resource!

]]> By: Jason Dean http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-531 Jason Dean Wed, 29 Aug 2007 20:46:24 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-531 Eric - I used the term "code of silence" for dramatic effect. Obviously, there is collusion to establish a standard commission -- and I wouldn't have any problem with that if not for the collusion between the government and the National Association of Realtors. I believe in free markets, not government-sanctioned cartels. The ridiculousness of anti-trust is exposed by this arrangement the Realtors have with the government. Yes, the top performers typically get a better deal, based on volume. i.e. after surpassing $x in commissions or sales, the split between the Realtor and her broker shifts to being more favorable to the Realtor. Also, the base commission of 6% may decrease based on the selling price of the home. i.e. it may be 6% for the first $200,000; 3% on the next $300,000; and 1% above that, etc. Eric – I used the term “code of silence” for dramatic effect. Obviously, there is collusion to establish a standard commission — and I wouldn’t have any problem with that if not for the collusion between the government and the National Association of Realtors. I believe in free markets, not government-sanctioned cartels. The ridiculousness of anti-trust is exposed by this arrangement the Realtors have with the government.

Yes, the top performers typically get a better deal, based on volume. i.e. after surpassing $x in commissions or sales, the split between the Realtor and her broker shifts to being more favorable to the Realtor. Also, the base commission of 6% may decrease based on the selling price of the home. i.e. it may be 6% for the first $200,000; 3% on the next $300,000; and 1% above that, etc.

]]> By: Eric http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-530 Eric Wed, 29 Aug 2007 19:44:57 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-530 It's not that Realtors are bound by a code of silence about commissions. It is the anti-trust laws that they're trying to avoid breaking. They don't even want to give the impression that there is some collusion to set a "base" commission. There are severe penalties under the federal laws. You're analysis of the commission breakdown, however, is farily accurate. Usually the "top performers" receive a higher percentage of the frim/agent split. It’s not that Realtors are bound by a code of silence about commissions. It is the anti-trust laws that they’re trying to avoid breaking. They don’t even want to give the impression that there is some collusion to set a “base” commission. There are severe penalties under the federal laws. You’re analysis of the commission breakdown, however, is farily accurate. Usually the “top performers” receive a higher percentage of the frim/agent split.

]]> By: Liz Provo, Editor/Publisher http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx/comment-page-1#comment-529 Liz Provo, Editor/Publisher Wed, 29 Aug 2007 18:09:10 +0000 http://www.smartmoneydaily.com/personalfinance/is-your-realtor-looking-out-for-your-best-interests.aspx#comment-529 Well said! In addition to the sites you have mentioned, sellers should look for the kind of exposure and support found through regional for sale by owner advertising services. Being local is very important as most real estate is purchased locally and the owners of these services know their local markets best. A great resource to find for sale by owner magazines in your area is: http://www.fsbopublishers.org. Well said! In addition to the sites you have mentioned, sellers should look for the kind of exposure and support found through regional for sale by owner advertising services. Being local is very important as most real estate is purchased locally and the owners of these services know their local markets best. A great resource to find for sale by owner magazines in your area is: http://www.fsbopublishers.org.

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