People will hire an attorney to fight a $200 traffic ticket or run to a doctor at the first sign of a cough but will try to buy or sell their home without an agent. I just don't understand!
2007-07-20 05:44:29 · 29 answers · asked by exitbrian.com 2 in Business & Finance ➔ Renting & Real Estate
First off, you make more money. You should've seen the show 20/20 where they explain that stuff.
2007-07-20 05:46:58 · answer #1 · answered by Miza 2 · 1⤊ 0⤋
It's a question of where to spend your money. If I were selling a house, I'd use a Realtor. If I'm buying a house, I wouldn't. With the money I save on the commission, I'd be able to afford a professional home inspection. A Realtor isn't going to protect my rights better than my attorney, or get me a better deal on my mortgage than I can find myself by shopping for a bank.
A Realtor is looking to get the biggest commission possible. It only makes sense to use one to sell your home ... they'll get the best price for it.
I think it makes sense for SOME people to use one to buy a home. Not everyone is knowledgeable enough about it, or there are people who have enough money that it's not worth the trouble doing it themselves.
People who spend $200 for an attorney to fight a traffic ticket are probably people who can't have any more points on their license, or who have such bad records they could lose their insurance if they get any more marks.
People who run to the doctor at the first sign of illness are trying to prevent something more serious. They can't write their own prescriptions, or give themselves medical tests. It's just not the same thing as trying to save a Realtors commission.
2007-07-20 13:01:21 · answer #2 · answered by kat_sparrow 3 · 0⤊ 0⤋
Most people got into a house with a "bad" type of loan. The payments go up as interest rates rise. It usually takes about 2 years for the home owners to be in a position where they can no longer make their payments. In two years you have "nothing" in your house. You have basically been paying interest on the loan. There is NO equity. (It usually takes 5 years of living in the house to "break even" when you sell it.)
A realtor will ask for 3%-8% commission. If the house sold, probably below market value, the home owner would lose that amount. And they were strapped for cash in the first place. That's why you see so many people FSBO. But only 10%-20% of FSBO houses sell.
2007-07-20 12:52:13 · answer #3 · answered by Kelli 3 · 0⤊ 0⤋
because 99.9% of agents are horrably lazy, and grossly overpaid. and people just dont want to deal with that level of people. There are true professionals, but they are so rare, that you are better off looking to be adopted by a rich uncle and giving your property to a cherity.
times cange, and there isnt room for a leach to suck 7% out of every deal I know what I have to do to make $20,000, and it is alot more than they do!...... people are finding out that the emporer has no close, and quit believeing the crap about them being professional and adding value to the deal in that amount.
Obviously you are an agent or know one well. so let me give you a little business advice which will grow your business by leaps and bounds
be honest!.... agree on the value of the property. take $1000 if it sells for that price, and 40% of anything you can get over that... If you cant agree on a purchase price, walk away..... why would a person agree to pay you 5-7% o
Do a 1 page agreement that says If I bring you a buyer, I get paid X amount.. ....no tie you up for 6 monthsand I get paid no matter who brings you a buyer.....
put your money where your mouth is... that person is betting that you will get the job done...you bet that you can too!
put out an ad that says if I cant get your place sold in 90 day for the agreed price I will pay your interest payment for that time......or something where you take the risk for your abilities...
oh!.... I have several sizable properties listed right now with simaler terms... I deal with those people because they perform, and garentee it.... I dont buy effort, I buy results.... sell results, and you will be amazed
2007-07-20 13:01:01 · answer #4 · answered by Joel 3 · 0⤊ 0⤋
I guess the obvious answer is avoiding the cost(commission to the agent). Especially in this era of the real estate slump, anything that will make you sell a real estate at the best price will go a long way to help. Remember adding the real estate agents commission will make your house more expensive and taking it out of the asking price is also going to leave you with less cash. if you can handle the stress, work and commitment, give it a shot.
2007-07-20 12:56:51 · answer #5 · answered by denzel j 1 · 0⤊ 0⤋
Any person who hires an attorney to beat a ticket is not very smart.. They call it more money than good common sense.Same in the real estate world ... Use good common sense and anyone can save thousands by sell by owner... Buying is not a big deal... Read a book and find out
2007-07-20 13:15:46 · answer #6 · answered by Gerald 6 · 0⤊ 0⤋
Real estate agents are not middlemen now a days. They operate not with commission or brokarage. They try to bridge the gap of sale price with purchase price, but undervaluing the price at seller end and hiking the buyers choice. The gap is looted and shared by the profession als. Secondly, if the deal is ending in rotten legal problem, the professionals are absconding.
2007-07-20 12:52:03 · answer #7 · answered by Krishnamurthy v 1 · 0⤊ 0⤋
To avoid paying a commission to the real estate agent. Its the same reason people trade stocks without a broker, mow their lawn without a landscape engineer, or exercise without a personal trainer.
Lawyers and doctors go to school for two and four additional years respectively to begin practicing their craft, at which point they essentially apprentice as residents or junior associates. Real estate agents pass a test.
The entry barriers to professions, and the level of specialized training, is the reason that the specialties of certain professions are not available to laymen the same way others are.
2007-07-20 12:49:33 · answer #8 · answered by Danny42378 3 · 0⤊ 0⤋
Realtors make way too much money in my opinion for the work they put in. I've sold 2 homes now through a realtor and next time I'm selling it by owner. I'll end up with an extra $18,000 in my pocket. The last home I sold to the first person that it was showed to, so the realtor made that much money for listing the house and showing it to 1 person? Wow not bad for a couple hours of work. Maybe commission should be based on how much work they put into it and how long it takes to sell? It's crazy how much money they make but all the power to them. Easy money!
2007-07-20 12:53:05 · answer #9 · answered by Anonymous · 1⤊ 0⤋
They want to save money...and as long as they have a simple transaction with no hiccups they can probably get away with it. I think it's kinda funny that people are willing to pay a bank many thousands of dollars in interest without complaint but want to dodge paying a broker/real estate agent to help make sure all the t's get crossed and i's get dotted so they don't get sued. Oh well...best of luck to them.
Most of these people gladly pay a mechanic to correctly diagnose and repair their car, a roofer to come re-roof their house, etc.. Why not pay a professional to do the job right?
2007-07-20 13:35:52 · answer #10 · answered by ? 5 · 0⤊ 0⤋
As a real estate broker, I tend to laugh at those who go the FSBO route. They do all the work themselves, and pay for all the advertising. When they DO find a buyer, the first thing the buyer does is offer 6-7% LESS than the proper price, because the seller isn't paying a realtor.
FSBO sellers attract the same sort of folks they are. Buyers who want that real estate fee in THEIR pockets. Most FSBO folks cave to the demand in short order.
2007-07-20 12:53:18 · answer #11 · answered by acermill 7 · 1⤊ 0⤋