Posted on 07/27/2006 5:37:21 AM PDT by Hydroshock
When I sold my condo, I did FSBO. Sold it in a few weeks, got the same price as an indentical unit in the building sold through the MLS.
We sold our house through a discount broker: 3.5%. 2.5% went to the buyer's broker and 1% went to him. Our house was in Greenwich, CT.
He held one open house, and got us in the MLS. Our house sold in three weeks, and this was around Christmas, and the first weekend there was major snow so no one could come down our street and the second weekend was Christmas.
I understand why the buyer's broker gets 2.5%. But why should the seller's broker get much? We had committed to selling our house. He didn't need to convince us. He just put a lockbox on the house and had one open house for realtors.
After we sold the house, Al Gore came and stole the lockbox...
The government directly or indirectly has controls on many markets. We both know this.
And while we're at it, we can make laws saying that architects can't charge more than $5000 to design a house, contractors can't charge more than $8000 to build a house, and just for good measure, TV's can't cost more than 50 bucks! : )
We just sold some land in Yugoslavia and their version of a broker had a fee of judst 3%. That seems very fair to me.
Then how did "My realtor made a whopping $31,500 on my house in April".
One major difference, in TX RE agents are licenced and regulated by the state. The rest aren't.
I failed to include the fact that the seller was interested in a quick sale, due to cash flow considerations. We offered the asking price and it was accepted immediately. The seller was happy. We (the buyer) were happy. And the real estate agent made a cool $15K without paying a dime in advertising and about 4 hours of effort...his value was knowing his customers and putting the right people together at the right time.
I've always been a bit suspicious of a business that can generate a healthy annual income for folks who seem to have a lot of downtime.
"And while we're at it, we can make laws saying that architects can't charge more than $5000 to design a house, contractors can't charge more than $8000 to build a house, and just for good measure, TV's can't cost more than 50 bucks! : )"
Sounds like the modern version of FDR's "a chicken in every pot" promise.
I'm voting for you!
"One major difference, in TX RE agents are licenced and regulated by the state. The rest aren't."
I don't of any state where Real Estate brokerage isn't regulated by a state agency.
"One major difference, in TX RE agents are licenced and regulated by the state. The rest aren't."
Yes, architects are licensed by the state. Contractors aren't licensed but their work has to be inspected.
Licensing has to do with ethics and legal issues, not the amount of fees charged for a service.
"Then how did "My realtor made a whopping $31,500 on my house in April"
$529,990 x 6% = $31,794 to be exact. The realtor didn't get all of that, but it all went to the same brokerage firm. Better?
Bottom line is that some 'freepers' advocate fascism by government price and wage controls instead of capitalism.
If real estate is such easy money why don't more freepers go for it?
"But if you hate agents, "
then DON'T use them. If you value their services and think the fees are worth what you get then find one that you like. That's what freedom is.
It's amazing to me how many people on FR say they are conservative, but as soon as something comes along that they don't like they immediately think of a law that will instantly solve their problem.
As in most any other sales field, the 80/20 rule applies.
Lots of part timers and dillitantes. Many commission motivated who provide no service.
Those don't usually last.
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