Are REALTORS really very RELEVANT anymore?

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If its a somewhat expensive house you can forget the lockbox and tell the listing agent you want them there for every showing.

People should interview a few agents, telling them that. They work for you. They are not doing you a favor by selling your house.
 
The other thing I think both a buy and seller should do it to tell the agent the absolute minimum of information about yourself and your situation. Everything you say will hurt the price.

Tell the agent your wife has a job across the country that starts in 2 weeks will let the agent know you want to sell quickly. They will let that info be known to the buyer's agent.
 
They definitely perform a service. For the life of me, I don't know why their compensation should automatically inflate with the price of real estate. I also don't know why buyer's broker and listing broker should split the commission. The buyer's broker does all the salesmanship.

Once sold a house with a discount broker. 1% commission, and you could fix in advance what you would be willing to pay buyer's broker. Most people try to chisel on that, but I went the other way and offered 4%. Sold right away. I would do it again, but in full disclosure, it was realistically priced in a hot market, so who knows?
 
Realtor here. Basically realtors are paid to close the deal. It's like any sales job, no closing, no payment. The problem with most FSBO is that they are trying to save the commission for themselves and because they don't know the process, it's a lot more difficult for both buyer and seller. There is also the matter of trust, buyers and sellers typically don't trust each other and both parties can get a little nutty so if there's a 3rd party, one side can talk the other down, otherwise both sides dig in their heels and it's no deal.

Also don't forget where the money for apps come from. Did you know Zillow makes money from real estate agents that advertise on their site. Guess where real estate agents get their money from, commissions. Eliminate the realtor and you eliminate the income that allows those sites to be created.

And you do realize what site we're on, technically all those quick change oil lube places should be out of business as changing you own oil is easier than a real estate transaction.

There's also value in being able to plug into a ready made network. I recommend home inspectors, attorneys, insurance companies, mortgage brokers and I also have a list of electricians, plumbers, HVAC, etc that can come in handy after the sale.
 
A few years ago a friend's elderly father sold his house through a local realtor. He (the seller) was delighted with the price, as it likely went up 5 or 6x between the early 60s and early 2000s, but his son thought the selling price was a bit low and found it curious that the house had sold just before the realtor's exclusive listing was about to expire.

At that point another realtor would have likely sold the house and the original realtor would have gotten only half the commission. It was in the original realtor's best interest to sell the house quickly at a low price rather than see another realtor sell it for a higher price.

Seller beware.
 
Originally Posted By: zzyzzx
Are REALTORS really very RELEVANT anymore?

yes, but only because the MLS is practically a monopoly.


Who do you think created the MLS? Realtors. They banded together to create a system where other agents can see their listings. MLSs are funded by the realtors who make their money from the commissions they get from selling homes. Eliminate realtors and you'll eliminate the MLS.
 
The only thing worse than a Realtor is a late arriving phone bill!

But seriously, who else is going to show people homes? You need someone to escort buyers through homes for sale, perspective buyers do not feel comfortable viewing a home with the current owners present. Plus writing the offer and additional paperwork...there does need to be some representation there.

You're free to buy/sell without a Realtor if you want. Chances are you'll end up walking away with less than if you had paid a Realtor to do the transaction for you.
 
Originally Posted By: dishdude
The only thing worse than a Realtor is a late arriving phone bill!


What about politicians and lawyers? Not to mention used car dealers...
 
I used one as a buyer, cost me nothing...and made it very easy when submitting an offer. I cannot stress how easy it was, and again, cost me nothing.
 
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We didn't want to use a realtor because of the commission, but after speaking with a professional buyer and seller of many properties, decided to go with a realtor. He did an amazing job and got us more for our house than we hoped. If you have the right realtor, definitely, positively worth it. Also, no issues regarding transfer of title, etc. If there's any screw-up, the realtor is on the hook for it. Also, there is an additional layer of insulation on disclosure liability. Go with a realtor if you have any sense at all.
 
They are professional sales people. And everything that entails.

That being said we use a realtor for all our properties. If I was selling only my own home I'd likely list myself.
 
Originally Posted By: dishdude
The only thing worse than a Realtor is a late arriving phone bill!

But seriously, who else is going to show people homes? You need someone to escort buyers through homes for sale, perspective buyers do not feel comfortable viewing a home with the current owners present. Plus writing the offer and additional paperwork...there does need to be some representation there.

You're free to buy/sell without a Realtor if you want. Chances are you'll end up walking away with less than if you had paid a Realtor to do the transaction for you.



Absolutely correct.

It's like representing yourself in court. Unless you've done your homework your going to lose.
And they only get paid once the house sells,so it's in their best interest to get the maximum dollar for the asset.
 
Originally Posted By: RAM_Designs
I used one as a buyer, cost me nothing...and made it very easy when submitting an offer. I cannot stress how easy it was, and again, cost me nothing.


I'm glad you feel that way. There's an on going debate as to who really pays. Technically it's the seller who pays the commission, but it's the buyer that brings the money to the table.
 
Originally Posted By: Number_35
A few years ago a friend's elderly father sold his house through a local realtor. He (the seller) was delighted with the price, as it likely went up 5 or 6x between the early 60s and early 2000s, but his son thought the selling price was a bit low and found it curious that the house had sold just before the realtor's exclusive listing was about to expire.

At that point another realtor would have likely sold the house and the original realtor would have gotten only half the commission. It was in the original realtor's best interest to sell the house quickly at a low price rather than see another realtor sell it for a higher price.

Seller beware.
Most listing agreements are for at least six months. If it sat on the market for 4-5 months before getting a contract it wasn't underpriced. Most people have no clue of what properties are worth. What the seller, or his son, "thinks" it's worth couldn't be less important to the actual value.
 
Originally Posted By: hatt
Most listing agreements are for at least six months. If it sat on the market for 4-5 months before getting a contract it wasn't underpriced. Most people have no clue of what properties are worth. What the seller, or his son, "thinks" it's worth couldn't be less important to the actual value.


The seller determines the sale price, but the buyer will only pay what the property is worth. If the seller overprices the home, then there's no sale.

I once brought a buyer to see a FSBO and it had been on the market for over 2 years. I tried to show the sellers some comps but he started to go on about how that one particular sale was a distressed sale, guy had to sell for one reason or another. But there's always properties on the market due to the 3 D's, death, divorce, and disease, not to mention job loss, relocation etc. A comp is a comp is a comp. I knew I was wasting my time talking to him and that's why his property was so overpriced and still on the market 2 years later. I think he'd finally sell when the overall market moves up to his price level assuming he doesn't increase his price later.
 
I bought a partial piece of property adjacent to my house. The seller sold me 15 extra feet added to my property, basically reducing the size of his lot. We called in a realtor to handle the sale it was handled properly with all the eyes dotted and the "Ts" crossed. It cost me but it was all handled correctly with land platts redrawn, surveyor property pins corrected and everything recorded at the county courthouse.
A year after that the property next door was sold. The new owner began to put up a fence on my newly acquired "sliver" of land and I stopped him and showed him the new property line pins. He got hot and I suggested he swing by the courthouse to take a gander at the platts. He came back, hat in hand, and apologized. Turns out he wanted his purchase "agent free" to keep down the costs. He got bit. Hard. As in reality bites.
So yes, real estate agents, title companies etc. do cost extra, but in my case it was worth it.
 
I bought my first house in 2010. If we ever sell this house, I will use an agent. I know one thing, I will not be talked down my price just to make a sell. I will do my own comps. If a house down the street sells for 450k, I have my home listed for 450k. My agent will have to explain to me why I can't get the same price or more. If it's slow market, I will just take listing down. All the homes in my neighborhood are around 3000k square fee with around 0.5 acre of land. My sister is a realtor. I can bounce ideas off of her.
 
Good real estate agents are worth a lot. I do a lot of business with a number of them and they are instrumental in putting deals together.

Having said that a lot of them are idiots and worth very little. One needs to find the top agents in their respective area.
 
Originally Posted By: SumpChump
I'm kida neutral on the subject but another mutual friend of mine out in his two cents and really got me thinking.

He said, "Just WHAT does a realtor do for you? Tell me, what did they say they handle that you, an hourly attorney and the title company CAN'T? "

I was dumbfounded... I don't know. I know that a surgeon can identify and move veins as he removes XYZ from my body. But I really can't tell you WHAT super complicated forms they fill out that I can't understand. And I beleive in (from tradition i suppose) a realtor.

Amazing that a person with a 6-10 weekend course knows the super secret sauce. He got me thinking. I can tell you what any other professional DOES that I can't or am not certified legally to do for myself. Feels weird.

EDIT: It sounds like time and advertising , time on advertising. Is about all they do really. Other than tell you to pull the dead bush, clean up your [censored], replace one most obvious window with a cheapy but new vinyl window.

interesting how all the "mom realtors" homes stay on market for 10 months but others by bigger names sell quicker but does the quick sale close DEARLY as the require big bucks in homage to their name.


A good agent can do a number of things for you.

1. They properly price your home, most home owners are unable to do this and think there house is worth more than it is.
2. They can help you present your home to maximize its saleability. This is a bit of an art, a lot of houses have a number of little things that if done will make them much more sell able.
3. They get the house on the MLS, this is the single best way to expose your property to qualified buyers. Notice I said qualified not tire kickers.
4. They are able to show the house when your not around, and deal with negotiations.
5. They can walk you threw the sale process, I have seen many people get bound up in this area. They get to the inspection and will blow a deal over a $500 repair. A good agent is able to provide perspective on such things.
 
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