Providing the average US home price at $269,211 most would then charge from $8076.33 to $16152.66 (3%-6%). Can you make sense for those that don't see and understand the value? Please explain by given details that selling a home requires such a price tag. Appreciate any educated and informed answers.
2006-09-03 16:26:59 · 6 answers · asked by made_u_look06 2 in Business & Finance ➔ Renting & Real Estate
I think only 5% of people who do it on their own sell. They can charge whatever they want, they have all the power. You either hire them to sell your house, or it wont sell. Which would you rather have?
2006-09-03 16:32:56 · answer #1 · answered by wrf3k 5 · 0⤊ 0⤋
Richard's answer was good but there are a lot more things he didn't mention.
E & O insurance, fees and dues to have access to the tools to advertise your home such as MLS fees.
The agent also rarely gets the full amount of the commission. The agent and broker work on a split where the agent gets part of it and the broker gets the rest.
The agent pays all the expenses involved with marketing the house, not the company.
The laws change so much continueing education is a must and the agent pays for the clases plus the accomodations since a lot of them are held out of town.
Knowledge. Priceless in my opinion.
It's a profession. If I were going before a judge I would hire an attorney. If he wants $200 an hour, that's what I will pay. Same thing. Professionals earn and charge what they are worth.
Yes, there are some agents who don't earn what they charge. That's why a great deal of our business is earned on referrals. If I have a happy client, they will refer me to frinds and family. If I have an unhappy client, they will spread the word to everyone they know about how bad the experience and agent was.
Of course, I don't have unhappy clients:)
2006-09-04 03:10:24 · answer #2 · answered by Karen R 3 · 0⤊ 0⤋
Supposedly the realty company is able to get you the highest market price available for your property. Advertising is certainly not cheap nowadays, and an online presence of listings costs money to update and maintain. Plus some companies charge more because they provide more services... some even provide you with a truck for moving free of charge (of course, you're really paying for it in the commission). Some For Sale By Owners (Fisbos) sell their homes easily... unfortunately for them, it is often at below market value. Turns out those buying from Fisbos are looking for bargains. So if a Fisbo sells their home for $250K but a realty could have sold it for $275K, you can see how easily those commissions are earned.
2006-09-03 16:38:12 · answer #3 · answered by Mike S 7 · 0⤊ 0⤋
true it may seem like a rip off or very overpriced but there are a few things to consider.
A) they worked to buy/sell the house and complete the transaction. very loathsome sort of work that I believe the should be entitled to receive some compensation for.
B) they do or assist you with the paperwork needed in selling/buying the house instead of you doing it solo. if you've never done it by yourself, try it sometime. Not very easy or fun
C) it's essentially a consultant fee in the end. depending on the level of service or the realtor in question, it;s all about the service one provides in the hime process.
bottom line, they got to eat too and raise a family. just be sure and not get ripped off by these people over stupid charges
2006-09-03 16:37:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There are many things that go "behind-the-scenes" which most people are unaware of. This includes, flyers, lockbox, advertising online and off, open houses, agent open house, speaking with other agents, etc... 5% is the minimum professional agents charge. Of coarse, you'll have discount brokers who will go as low to input your home in the MLS and leave everything up to you.
When an offer does arrive, agents pre-approve, writing the offer, counter offer, making sure the terms of the agreement are to your benefit, home inspection, meeting with the appraiser, the lender, mortgage broker, title, escrow, underwriter, transaction cordinator, disclosures.
There is a lot of work thats done. Make sure to hire a pro so he can do it right the first time. BTW, REMAX agents are mostly successful agents in the real estate industry.
Richard Johnston, REMAX
2006-09-03 18:56:26 · answer #5 · answered by ? 3 · 2⤊ 0⤋
The market is softening up and houses are now more difficult to sell. However, it doesn't cost 8K to 16K to sell a house. What most realtors will do is just list your house in the MLS (it will take them half an hour or so). That information is then available to hundreds of realtors. Hopefully, one of them is going to produce a buyer, and both realtors (the one who listed the house and the one who brought the buyer) will split the commission.
Now there are realty companies that offer what they call Flat Fee MLS listing. Basically, you pay a small fee, around $300, and they let you list your house in the MLS. Then, if a realtor brings you a buyer, you typically pay him/her between 2% and 3%. In other words, you don't need to pay a realtor to list your house... you just pay the realtor who brings you the buyer.
Look for "Flat Fee MLS Your City" in Google, to find a realty company that offers the flat fee service.
2006-09-03 16:43:11 · answer #6 · answered by habitatrei 1 · 0⤊ 1⤋