Buying a million dollar home and paying 60k for commission seems so high. On top of that, I'm doing all the research work... why hasn't this process been reinvented to reduce the cost of buying and selling a home?
TOP 43 Comments
- I think it's mostly to prevent fraud and manipulation, but is mostly an antiquated system that still exists because enough people depend on it for employment, like car dealerships.
- Netflix nflxengI purchased two houses in Bay Area and I never cared much for my agents input.
1. They are usually very slow to show houses. I can see like 5-6 hoses in a day in 2 hours.
2. My agent(s) always told me I was paying more and would ask me to lower price and we were getting overbid.
Finally I started using them to fill my price on contract and we were able to score the house. I would do research and see houses. Not entirely sure why they need to be paid 40-50k??
- OP has clearly never bought or sold a home. It's a tremendous amount of work and requires a lot of hours.
- Such hostility. It’s more than 3, and I never called myself an expert, just sharing the fact that it’s easy enough for a lay person to do it. A realtor’s license can be achieved by someone in 3 months or so without a GED, so it’s not like the bar’s real high to achieve expert status anyway.
- Not being hostile but the bar is actually incredibly high. Something like 90% of agents fail on the first year. Passing a broker lisence test is one thing but that's like saying everyone with a driver lisence can become a race car driver. A good agent is worth their weight in gold. You may not need one to get the deal done but you should to make sure you get the best deal possible in almost every case.Jul 1 1
- You are now conflating salesmanship with other pragmatic duties of a realtor. They’re two separate parts of the job, and I thought it was rather clear that we’ve been talking about the process/logistics of buying/selling a home. These are very limited skills that anyone can quickly learn. On the other hand, selling (and it really doesn’t matter what the product is) doesn’t require any hard skill whatsoever. You can be a fantastic salesperson with zero training as long as you are likable (being attractive also helps). We’ve not be talking about the art of selling in this thread, but if we were then yes a realtor’s ability to be very successful will largely be dependent on the soft skills.
- That's the whole thesis behind Opendoor. We're doing pretty well so seems like you're on to something...
- Sort of. But it's not like sellers still don't get hit with fees. OD's average 8.1% and go up to 13% (before repair costs). If 6% bugs OP this isn't really an improvement.
I like your business model but it's not substantially (or at all, likely) cheaper for a seller that has time to sell or the ability to carry two mortgages for a while.
- What value does open door provide other than speed of sale, flexibility of closing date, and management of the repair process (which your realtor will do for you)?
I've done the offer (declined - it was just for curiosity sake) and had two neighbors do it. Both were because they needed to relocate and wanted a predictable timeline. I don't remember seeing information about another value prop than those.
- If you believe your agent isn't providing that value then don't use one. FSBO is common. But if the buyer brings an agent you're still paying that if you want the sale.
- So you have a buyer's agent not a seller's agent? They will show you whatever you want. The seller (often the seller's agent) pays their commission (and it shouldn't be 6% for a buyer's agent).
My experience was If you want to buy a FSBO house where the owner won't pay the buyer's agent fee then you are going to have to pay it or pass.
- I discussed this with a friend. We ended up on the idea it's very hard for people to trust something online
- Peloton / Other ThizzymoreWhy are you even thinking about this? If you think they have no value, go ahead and sell or buy a house or property without one. If you get fucked don't come crying. Said job can be said about a lot of professions. Financial advisor? Stock broker? You can learn all of this by yourself and invest your own money. Most of them use AI anyway. It is usually the people that do not know exactly what goes on that say ignorant things like this. They work on commission. They put hours in the job and lots of deals fall through also which means no food on the table. Go ahead and do your "research" and buy/sell a property. Good luck!
- If you are buying, you need a real estate lawyer to write up contracts for your offers. They charge around $3k. If you're working with an agent, they usually have a lawyer at their firm who does that. You can eliminate the agent from the equation and just go with a RE lawyer
- Microsoft pJcW86This thread lol. As a buyer or seller I wouldn't want to deal with Joe-Blow-know-it-all thinking he can do everything himself and making my agent have to waste time teaching him. Generally self-represented buyers under-offer and generally aren't realistic and have tons of mistakes in their offer. For sale by owners price way under or way over, general presentation sucks (photos, showings, marketing) and don't work well with buyer agents.
As a multi-buyer/seller I use agents I've vetted and work well with because I just don't want to deal with all of the hassle even though I can be my own agent. I do my own research and let them take over on the offer.
Self representing means you are totally on the line for anything and you could be sued for any breaches or misrepresentations.
That said there are tons of shitty agents who are glorified salespeople who did not represent their client well and I was able to take advantage of it and get sales approved on my terms.
- Multiple research studies have shown that realtors literally add no value to process, and this is borne out by the data.