Posted on 08/17/2023 3:34:27 PM PDT by thegagline
WE’RE BROKERS IN SO CAL. USUALLY SEE ABOUT 5% AGENTS CHARGING SELLER AND PAYING HALF TO THE BUYERS AGENT.
HOWEVER. YOU CAN LIST THE HOUSE AND OFFER WHAT YOU WANT WHAT YOUR CIENT THE BUYER WANTS. I HAVE HAD IN COMPETITIVE MARKETS SELLERS SAY TAKE YOUR 2.5 AND GIVE THE BUYER 3.5 SO MORE WILL SHOW THE HOUSE AND THEY ARE RIGHT.
BUT IF YOU OFFER 2% OR LESS, SOME BUYERS AGENTS JUST WON’T TELL THEIR CLIENTS ABOUT THE PROPERTY (A VIOLATION OF REALTOR ETHICS, DON’T LAUGH I TAKE ETHICS SERIOUSLY). SO UNLESS THE BUYERS AGENT IS GETTING MONEY FROM SOMEWHERE, NO SHOW. AND THE CURRENT PRACTICE IS IT COMES OUT OF THE SALE ON BOTH ENDS.
LET’S SAY I AM HIGH END IN BEVERLY HILLS OR MALIBU. I’M NOT DOING IT FOR 5,000. THE VALUE OF THE HOUSES IS MILLIONS, THE CLIENTS HAVE EXPENSIVE LAWYERS, THEY ALSO EXPECT TOP SERVICE. THE BEST AGENTS IN SOCAL ARE ON THE COAST WHERE THE HIGH END HOUSES ARE. THE SELLERS WANT A HIGHER LEVEL OF SERVICE AND WILL PAY FOR IT.
MY PRACTICE IS TO CHARGE 4.5% IF THERE IS ABUYER’S AGENT. IF NOT AND I BRING THE BUYER AND REPRESENT THE SELLER I CHARGE 3.5. YOU STILL HAVE TO DO THE WORK FOR TWO IF YOU DOUBLE END THE DEAL.
BUT WE ARE NOT SO HUNGRY. MY WIFE AND I ARE RETIRED PEACE OFFICERS LIVING OFF THE PENSION TEAT.
LSSTLY, THER NRA REALTORS ASSOC IS POWERFUL AND LOBBYS HARD. LOOK FOR LEGISLATION OF THE COURT CASE DOESN’T GO THAT WAY.
AN ETHICAL PERSON WITH EXPERIENCE CAN EASILY REPRESENT BOTH ENDS. MY WIFE DO IT ONCE OR TWICE A YEAR FOR 18 YEARS AND NO ISSUES.
Nonsense.
One agent listed the property, and has a better chance of selling it, THAT is your compensation. The other agent deserves to be compensated equally for bringing the buyer. If you couldn't sell it yourself, why should you get more money? If your client was eager, why should you get more money?
Real Estate is quite the scammy game, almost as bad as township property taxes...
a lot of agents in socal are hurting. prices have dropped slightly and interest rates more than doubled. usually when prices are high interest is low and vis a verse, but not now. Many agents hungry and no listings.
Thank you for the insight. I’ve represented a number of realtors both in court and before the the board (ethics hearings). There are many bad ones out there. The stories that I could tell are unbelievable. From misrepresenting which lot is for sale to trying to sell an entire town although the seller didn’t own the town.
an “accepted offer” implies a signed agreement which is a contract Once the last signee sends it back to the other party or their agent and it is received, it is a valid contract.
Most people don’t push the issue if someone backs out especially if escrow hasn’t opened. Most contracts have clause that lets the seller recoup losses like escrow costs and agent fees if the buyer backs out while under contract.
Technically you could but you have to show damages. If i back out in 40 hours what would be the damages to the buyer who could still entertain other buyers, show the house, and not be out any money?
Most agents don’t charge to list, though a few do. Some agents will list for a fee and not do anything else. Depends on the agreement. I used to list for sellers agents from out of the area for $500. It takes me about 4 hours to do a listing. Most agents eat it if they don’t sell the house. Many sellers in middle and lower middle class can’t pay a large fee, they will need to take it out of the sale.
Most of what you propose can be written into a contract. The more detailed the law the less flexibility for the buyer and the seller to accommodate particular situations.,
a broker tried to scam me in a sale because his client was running a game. i called the county and verified I was right about it being illegal It was a scam to get lower property tax rate when they bought the house. He had done it 6 times before.
The broker died a week later and his asst was excellent and ethical. We closed the deal with the illegal part being out. Don’t know of the county ever did anything.
I am Italian and my associates accused me of putting a hit on the guy : )
50% to the broker. Wow. I’m in the wrong area. we get 20-10 based on the experience of the agent and how long they have been with us. Need more training we take 20%, less 10. we don;t jhave an office. Work out of home and car.
That was 32 years ago....last time I was a seller.
I have a hilarious buyer’s agent story.
My wife’s sister has been single her entire life—and she has zero street smarts.
She hired her hairdresser as a buyer’s agent.
She ended up buying a house where her vehicle could not fit in the garage (no measurements needed for these ladies :-) ) and at the busiest intersection in the entire metro area during rush hour (no checking traffic during rush hour for these geniuses :-) ).
The last time we visited you could hear the drivers yelling curses at each other outside even with the windows closed.
Shortly after that the basement flooded from a two inch rainstorm (no checking of drainage system for these ladies :-) ).
Then she got into a dispute over the property line with her neighbor (survery, what is that?) and they didn’t speak any English.
She knew I worked in commercial real estate lending but did not ask me for any advice, and I did not say a word....
My great grandfather was from Genoa. When he came to NY, he pretended to be French because the Irish, who controlled much of government and businesses, wouldn’t hire an Italian. To get even with them, he married an Irish woman.
coming out of law enforcement and retiring and getting a brokers license at the time just required college in Cal, I was amazed at how wrong and sometimes unethical people were. The closer i got to the beach the better the agents because that’s where the high end money is.
I still remember a four-plex where the sellers agent had the number of bedrooms wrong. I drove over and the maintenance guy pointed it out to me from outside the building. Duh the 3 bedroom was bigger and sticking out further than the 2 bedrooms.
LOL Mi nonno and nonni both from sicily met in W VA when he went to work in the coal mines. Didn’t stay in Little Italy much Found a sicilian woman in a diner owned by her brother Homemade spaghetti every day.
there is a Murphy’s Laws of RE poster I saw 1-5 years ago.
One rule. Someone in your family will buy a house without coming to you.
You’re story might make a rom-com
night all.
And this my friend is why I am considering leaving Austin and moving to the North End in Boston.
“ She knew I worked in commercial real estate lending but did not ask me for any advice, and I did not say a word....”
Wow.
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