Posted on 07/03/2022 4:28:13 AM PDT by where's_the_Outrage?
Sounds like the seller's realtor did an excellent job representing them and landing the sale. I'll wager the buyers were represented by an agent as well, since it cost them nothing to use one.
In contrast, its very doubtful the average homeowner would be able to close a deal like that on the spot even if they had been available to engage with some random buyers on a moments notice. Salesmanship is a very underrated skill.
That's $18,000 (6% commission) the seller had to pay whereas if they did FSOB for a few weeks they'd saved that money.
I've sold real estate privately before, but there was always a broker involved if for no other reason than it ensured compliance will all state/county/local regulations and removed substantial liability risk from my shoulders. Just type FABO+lawsuit into any search engine for more infomation.
FABO => FSBO
I sure found out the hard way!
Depending on the overall RE market, there are three things that will never change when selling a property……price, location and condition and they must be adjusted accordingly.
Put your house on the MLS by yourself and an agent that will list it for under $500. Then you only have to pay for half of the deal with the sellers agent doing all the work. I’ve done it multiple times just had to bitch slap back the realtor and the closing Company telling them that I own the house and you’re just a contractor. Once they all get that straight then you can move on with your cell. Good luck!
Dave Ramsey is not someone I would go to for advice, or guidance. He is rude, and proud. Poses as a Christian; I can’t speak to his actual salvation (or lack thereof).
And he has certainly figured out how to sell his name via “preferred local providers”.
I would be much more inclined to get advice on this matter from Clark Howard.
But I don’t know either of these two radio persons.
bump for later
Defects in the property title caused by human error are normally covered by title insurance, otherwise the seller of the property assumes the risk. Not sure the realtor or the lawyer can be blamed if you didn’t purchase title insurance, and my guess is that one or both of them would say they advised you to do so.
The term "work with" could mean "let's split the difference just above a low-ball offer and get this deal done before lunch, and I'll pick up the tab." If I hire an agent, either as a buyer or seller, I want that person to get me the best deal possible, no matter how long or how much negotiation it takes. Working with the opposing agent is not the priority. The priority is the best deal for ME and not the agents.
We bought in Florida during March of 2021. The market was just heating up and we lost out on a couple of properties that got into bidding wars. We then found a FSBO and were able to get it at the asking price. The bidding wars happen in hot markets dues to a lot of traffic and everyone wanting to win the bid. The FSBO didn’t have much traffic at all which made it easier for us to make the deal. I think we saved $50-75k because the sellers had underpriced it in a hot market, and no selling agents were bringing their clients in since there was no commission to be had.
We ended up giving our agent a smaller commission to help us get everything through closing.
A- Let's say a realtor has a 10% commission fee, how much would the realtor receive from $4,700.00?
B- There's a broker and an agent. Does the broker take his 10% fee from the agent's commission, or does he take it from the buyer?
Thanks for any info you can provide.
Lots of variables there. First and foremost, a broker’s fee is ALWAYS negotiable, when listing a property and if an agent tells you it isn’t, look for a different brokerage. Also, the seller always pays the commission to the listing broker, unless there is an agreement between the buyers and their buyers agent to search for a property. If it is a MLS listing, the norm is 3% to the buyers broker. Is this a commercial property because 10% is, in my opinion, extremely high for the sale of a residential property. The usual is 6% to 7%. A broker has their listing fee and then whatever commission % the broker pays to his agent is their internal agreement.
Are you buying or selling?
Agent found a renter. They met to pay the security deposit, first month's rent and agent fee. Because I couldn't be present, I requested photos of the cashier's checks. Agent sent me four photos.
4,700 - security deposit
4,700 - first month rent
4,230 - Agent fee
4,230 - broker's fee
17,860 - total paid upfront by renter before receiving keys to apartment!!!
This is insane!
Why would renter have to pay 4,230 twice?
Shouldn't 10% be 470.00 instead of 4,230?
Shouldn't the broker's fee be deducted from the agent's check?
I'm 100% shocked at how much a renter had to pay in order to live in my building. It just doesn't feel right.
In 28 years have bought 2 houses. Bought both FSBO. Gave one to an ex.
So, let me understand this. Is another renter subletting this apartment from you or are you the renter? Whoever owns the apartment/building is the one contracting with and paying the broker for services. An agent is simply that, an agent for the broker who holds his/her license. An agent, if a state licensed agent can never receive commission from anyone but the broker. What state is this property located in? From what I am understanding, the broker is going to receive a commission of 8,460.00. I am assuming the owner of the apartment is going to receive the first month rent and sec deposit and the renter is paying a ridiculous fee to the broker, right? What is the term of the rental agreement?
So, let me understand this. Is another renter subletting this apartment from you or are you the renter? Whoever owns the apartment/building is the one contracting with and paying the broker for services. An agent is simply that, an agent for the broker who holds his/her license. An agent, if a state licensed agent can never receive commission from anyone but the broker. What state is this property located in? From what I am understanding, the broker is going to receive a commission of 8,460.00. I am assuming the owner of the apartment is going to receive the first month rent and sec deposit and the renter is paying a ridiculous fee to the broker, right? What is the term of the rental agreement?
Good advice. I disagree w/ Ramsey on a number of things and this is one. I bet the number of deals that have blown up involving RE agents is greater than those of non-RE agents (ie. FSBO). I've used agents and real estate attorneys numerous times and it simply depends on the situation.
I have found most agents to be incredibly lacking in skill, knowledge, and experience for charging 6%. They are a pass through that creates alot of drama and extra work on the client side. As a profession, they need to increase their standards and focus on ethical business conduct.
Get a strong RE attorney to help with your deal. I have paid flat fees for their services and come out way ahead.
I have not signed any paperwork with the agent because what he presented me with would make him my building's manager. My understanding was that he either takes a fee from the landlord or the renter. So he decided to take it from renter.
One cashier's check was made out to the broker, the other check to the agent. So each received 4,230.
Ok. I think I have figured it out. I am thinking the term of the lease is for eighteen months. If the monthly rent is 4700.00, 10% of that is 470.00 which is what appears to be the fee the broker will receive for services per month, except paid in full, up front. So 470.00 x 18 = 8460.00. If you add the agents fee and the brokers fee together it is $8460.00.
Why it is broken down, between broker and agent is a mystery to me.
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