Why seller pays so much to buyer's agents?

Google
endcovid

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endcovid
Aug 16, 2021 29 Comments

Logic is very simple: agent just have to open the door and push papers here and there. 2-3% transaction fees on 2-3 M houses of bay area is insane amount of money.
I would say if commission is needed it has to be fixed value and not the %. Why would anyone pay different amount for SFH and condo when provided service is same? If you think 2-3% is small thing, try googling 'Apple Vs. Qualcomm' see how they fight for few percentage.

In fact, in this hot market nobody needs any agent. Neither seller's nor buyers. Anything can be sold in this market. You only need agent to sell 100yr old shacks or burnout houses, hack those also gets sold over LP in these days.

This industry is ripe for disruption and given our tech background we should seriously think about the solution here.

Very fine article on this:
https://johnfulton85.medium.com/why-should-sellers-have-to-pay-their-buyers-agent-s-fee-b5fcec2f0cb4

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TOP 29 Comments
  • You could always get a realtor license to avoid paying the fee
    Aug 16, 2021 1
    • Google
      wstrn

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      wstrn
      I actually thought about getting my license. 90 hour of classes plus an online exam. Minimal charges for your class and the joining an online brokerage.

      But then now I have two little kids and don't have the time to do it.
      Aug 16, 2021
  • Amazon
    hbLq83

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    hbLq83
    This is exactly the problem Opendoor is trying to solve!
    Aug 16, 2021 3
    • Amazon
      hbLq83

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      hbLq83
      How so?
      Aug 17, 2021
    • It's a long story. I was buying home through what is called opendoor backed offer. Basic concept is if our financing gets delayed opendoor closes on time with cash and they resell it to us. But the opendoor agent initially wrote the offer as a cash offer. They were promising a 1% Cashback incentive only if we close it through our lender and don't use their help. For this I requested the closing date to be pushed back to close through my lender. The sellers agreed to it and again didn't let the appraiser into their home. So now I am left with opendoor to buy with cash first and then wait for appraiser to appraise and close in the home which is taking like 45 days. And they won't even pay me the 1% incentive they promised. Overall the process has been very confusing and their customer support was lacking.
      Aug 17, 2021
  • Google
    โ†˜๏ธ๐Ÿšฝ

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    โ†˜๏ธ๐Ÿšฝ
    Because the sellers agent is defending their interest: inflating the housing market as much as they can :-)
    Aug 16, 2021 6
  • My realtor did basically nothing to get the $25k on the million dollar house I bought last years.
    No body likes tweaking with them and paying boatload of cash. They will be out of market and out of business soon
    Aug 16, 2021 1
  • Realtors have to go by code of conduct, because they are licensed and need to maintain their license, there is a world without realtors, itโ€™s called wholesalers, most people feel uncomfortable buying from wholesalers and these are considered off market deals and there are restrictions as wholesalers in certain states like Ohio, you canโ€™t directly market the sale of a house, canโ€™t publish address of house on sale.
    You also typically canโ€™t gain access to a vacant or occupied house using your wholesale agent, and if there is no seller agent, you would need to owner to be present to show you the house, and owners are also not typically open to engaging directly with sellers like this.
    Once the house is under contract, the seller agent or buyer agent would again need to provide access to the house to let in vendors like appraisers or home inspectors.
    Added to that the interactions required with the title company to provide them with the info they need.
    Donโ€™t know if does justify the 2 to 3% price, but if you are willing to do all this, but by all means you can list the house as FSBO - For Sale By Owner

    https://listwithclever.com/real-estate-blog/how-to-sell-a-house-by-owner-in-california/
    Aug 16, 2021 1