2007-01-16 17:31:16 · 6 answers · asked by Mimzy 2 in Business & Finance ➔ Renting & Real Estate
They're going to try to get 6% of the price of the home if no other realator is involved and 3 % if there is another one involved......"paperwork"? That's where all their charges come from. They can show you homes all day long and you aren't charged.....that's their free side in order to do "business" with you on the paperwork side.
2007-01-16 17:41:24 · answer #1 · answered by dylancv62 3 · 0⤊ 0⤋
A few comments.
Understand that when you ask a licensed agent to help with the paperwork they are taking on a fair amount of liability. Stuff happens and they could be sued. Even if they did not make a mistake. Hence you are buying more than just someone to fill in the blanks.
Also note that even if they are 'filling in the paperwork' it is common that they will still be expected to help keep the deal in place. Chasing missing items, making sure that others are not dropping the ball, etc. If you are going all that and are willing to take the risk that small stuff blocks the deal then the agent is not being asked to invest a lot of time.
Why even have an agent to just fill in the paperwork? Why not hire an attorney to do the same for a fixed hourly rate? Note that in some states you will not need an attorney to close as the title and other work is handled by an escrow company. In states where you normally use a lawyer for the closing they can deal with the paperwork to submit an offer.
Is there an agent on the other side? Are you expected to only use the Realtor approved forms in your area?
I am an investor and I do not have an agent's license. I can fill in my own paperwork as I have done many deals and studied RE for some time. I still will use an agent in some of my deals so that I have someone to do all the time consuming tasks (buying or selling). If I need legal advice I get a lawyer. Note many of my deals are done without a lawyer as I close at an escrow company in states where lawyer are rarely used for a transaction.
You need to decide just what you expect the agent to do. If you want advice and knowledge based on their training and prior experience expect that you need to pay a fair amount for them to take on the risk. Most agents who are experienced and skilled at what they do will not work for a minor fee. They know that most deals are not so straight forward that it is worth the working for a minor sum. In the cases where it is they likely will suggest you find a lawyer (and they can suggest a good one) as filling in contracts is what lawyers are trained to do. If you want market advice and someone to handle the details then the lawyer might say that they are not interested as that is not what they do.
2007-01-17 01:48:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
An acceptable rate for a Realtor is what you feel that agent is worth. Most agents will ask for 6% or more but they really aren't worth that. Most average agents are just pushing paper. More skilled agents are out doing the trench work to make sure your home gets sold. It comes down to this if an agent can sell your home within 90 days or less you as a home owner save a lot of cash and I think that a higher commission is warranted. But you should never buy a BMW with KIA features, meaning if an agent is performing sub-par costing you more dollars and not being a asset to the selling of your home they should be fired or the commission should be adjusted to fit that agents skill.
2007-01-16 19:38:50 · answer #3 · answered by James M 1 · 1⤊ 0⤋
Under the sale thinking, it also allows the person with the 100k home to afford the same services as the 400k owner. Higher end homes do require more advertising and contacts, there are simply fewer buyers for the high dollar homes (although your example is not high end). If you do not like the cost of services you are free to sell your home w/o receiving those services. Agents are upfront about what you are getting for their fee, it is far from a scam. I would never sell without an agent, I make a higher profit with them, and completely avoid legal problems (25% of FSBO end up in the court system). The person making the money is the mortgage broker, they get a higher commission then the agents and it is not disclosed to the buyers.
2016-05-23 23:16:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If it's paperwork only, have the settlement/real estate attorney draw it up for a flat fee. Your realtor is a salesperson, not an attorney.
2007-01-16 23:36:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
\depends on the sale price but I would typically say at least 1000 transaction coordinator fee....
2007-01-16 17:38:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋