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The lawyers who took on Big Tobacco are aiming at Realtors and their 6% fee

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The lawyers who took on Big Tobacco are aiming at Realtors and their 6% fee

Old 03-19-2019, 09:44 AM
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Default The lawyers who took on Big Tobacco are aiming at Realtors and their 6% fee

https://www.marketwatch.com/story/bi...fee-2019-03-19
Old 03-19-2019, 09:54 AM
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I've always questioned how a realtor can get a 6% fee when architects and consulting engineers often can't.
Old 03-19-2019, 09:56 AM
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Price fixing needs to be challenged.
Next they can take on medical insurance contracts with network providers. It's bullshit.
Old 03-19-2019, 10:15 AM
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Originally Posted by steeveau View Post
I've always questioned how a realtor can get a 6% fee when architects and consulting engineers often can't.
I just expanded my dock. I had to hire an engineer. I had to pay the engineer upfront. If the army corp declined my request (engineered plans), the engineer was still paided.

I think if realtors go to that kind of pay structure, the customary 3% fee to each realtor would change. If they were paid hourly or by each showing or by each item they worked on, it would be different. Some sellers would be ahead of the 6%, some would be more costly than 6%.

It would also cut back on expenses that realtors pay upfront hoping the property sells. Less upfront costs could lower the commission and realtors could make the same.

I dont neccesarily see the case winning, because there are alot of options for listing your home. 6% isnt set in stone. Can be less or can be more. Its negotiable.
Old 03-19-2019, 10:21 AM
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Originally Posted by UCF View Post
I just expanded my dock. I had to hire an engineer. I had to pay the engineer upfront. If the army corp declined my request (engineered plans), the engineer was still paided.

I think if realtors go to that kind of pay structure, the customary 3% fee to each realtor would change. If they were paid hourly or by each showing or by each item they worked on, it would be different. Some sellers would be ahead of the 6%, some would be more costly than 6%.

It would also cut back on expenses that realtors pay upfront hoping the property sells. Less upfront costs could lower the commission and realtors could make the same.

I dont neccesarily see the case winning, because there are alot of options for listing your home. 6% isnt set in stone. Can be less or can be more. Its negotiable.
There should be a "marketing fee" plus commission ( a lot less than 6%) If you want them to run ads then you pay for advertising. if you don't want to pay for advertising then you get nothing but MLS listing.
Old 03-19-2019, 10:26 AM
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Good!!
Old 03-19-2019, 10:34 AM
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In a typical situation a realtor only gets 1.5%. Buyer has agent, seller has agent both get 3% - then the brokerage gets 1.5% leaving the realtor with 1.5%.

There is a lot of liability involved. Personally I think the seller should pay half and the buyer should pay half. That only makes sense.
Old 03-19-2019, 10:37 AM
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There is no reason realtors can't be replaced by technology. Honestly, there is some antitrust type things going on in the industry.
Old 03-19-2019, 10:38 AM
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Originally Posted by SEATOAD View Post
...

There is a lot of liability involved. ...
Never saw much liability accruing to the agents/brokers in a real estate transaction.
Nothing beyond what a standard errors/omissions policy would address anyhow.
Old 03-19-2019, 10:45 AM
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This is far from set in stone, I just sold a home, realtor charged 3.5%, not 6.

And it's not true the agents take half the commission.

They get whatever they negotiated with the salesman. My salesman made 70% of the 1.5% and is in talks with another agency to collect 80%.

The other agency got 2%, not sure how they pay the salesman. I hear 60% is normal....

You can always do FSBO, I did it once, was super easy.

This lawsuit makes no sense.
Old 03-19-2019, 10:47 AM
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Ahh...all the armchair quarterbacks passing judgement on jobs they haven't the slightest clue about. My wife has been a successful Realtor for years..she's in the top 5% in my state of CT. Just got a top award from the Re/Max regional boss.

I see how hard she works for her clients. I see how much money and effort and other resources she puts into her work.
They get nickle and dimed to death with fees for this, fees for that, signs, lock boxes, advertising, staging, food and drink for showings, brokers cut, the state having hands in their pocket for every possible fee and tax and license and this and that and more. Non stop mandatory classes and certifications..all expensive.

If you actually saw how many hours they put into a real estate transaction..from start, to finish, you'd be amazed. They're on their phone and computers from early in the morning to late and night, and in between. Phone won't go more than 15 minutes without some ding or ring. It's a 20+ hour a day job!

At the end of the year, yeah..money brought in for their business looks good. But take away all the expensive...there's their "take home"....most people would walk away from that amount after knowing what kind of work goes into it. I'm a damn hard worker that easily goes above 12 or 14 or more hours a day for my job..and she's still busting her lass long after I close my laptop for the evening.
Old 03-19-2019, 10:49 AM
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There are probably 5 times more RE Sales associates than necessary. The vast majority are part time and married to highly paid professionals. It is a glorified social club and gives them an excuse to say they have a job. There are no benefits at all and can require working nights weekends without health benefits, vacation time, retirement, etc. The Brpker/Pricinples that hire the agents are the only one that make out in the deal and it's common for a RE office to have 50-100 agents and don't have to pay any of them a dime. If brokers had to pay a base salary plus commission to agents they would get rid of the part timers and only hire real professionals. In the end it would be better for the industry and consumers as well. Until then the market will seek out other alternatives and many buyers will opt to do FSBO.
Old 03-19-2019, 10:49 AM
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6% is ridiculous. Been a while, but I'm pretty sure I told my agent the max % I would pay. I think I told her 4%. That was split between both buyer and seller agents.
Old 03-19-2019, 10:54 AM
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Dumb lawsuit.

No one is forcing you to sign with a realtor. I have bought and sold real estate thru a realtor and FSOB.

A couple of years ago when I sold my place in Beaufort the realtor was well worth her commission. She got things done I would have never accomplished.
Old 03-19-2019, 10:58 AM
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Excellent news!
Old 03-19-2019, 11:07 AM
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Good. Absolutely useless industry.

Was looking at selling my home a few years ago. Interviewed some realtors. One guy charged 2% more than the rest. I asked him what services he could provide that the others couldn't at a lower price. He couldn't give me a straight answer.

Last time I was trying to buy a home, I was pre-approved for $150k. I was looking in the $100k range, which is pretty average for my area for a 3 bed house. One realtor refused to show me one of his listings unless I signed that he was my buying agent henceforth and he'd cut a cut of any house I bought even if it wasn't through him. I refused.

I asked another realtor to put together some houses for me to look at, and stipulated that I was not interested in a mobile home or any sort of manufactured house. First house we looked at was a double wide. I told him thanks for wasting my time and left.

Finally ended up buying a place from a coworker at a steep discount, partially because we didn't use a realtor, we just did a private party sale.
Old 03-19-2019, 11:10 AM
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Originally Posted by CME View Post
Good!!
Right!!
If there's one thing we need more of in the U.S. it's lawsuits. Far too many people are writing their own deals. We need lawyers to make sure THEY sue everyone to comply with THEIR sense of fairness!!

</sarc>
Old 03-19-2019, 11:16 AM
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My parents just sold a home and they had "the best" realtor around. They had a contract that stated "as is" and their inspection was for exploratory reasons only. They found about $7000 in water and termite damage. Some how their realtor talked them into paying for the repairs even though the contract stated "as Is". She just want the sale to go through without any issues. Screw my parents.
Old 03-19-2019, 11:19 AM
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Originally Posted by UCF View Post
I just expanded my dock. I had to hire an engineer. I had to pay the engineer upfront. If the army corp declined my request (engineered plans), the engineer was still paided.

I think if realtors go to that kind of pay structure, the customary 3% fee to each realtor would change. If they were paid hourly or by each showing or by each item they worked on, it would be different. Some sellers would be ahead of the 6%, some would be more costly than 6%.

It would also cut back on expenses that realtors pay upfront hoping the property sells. Less upfront costs could lower the commission and realtors could make the same.

I dont neccesarily see the case winning, because there are alot of options for listing your home. 6% isnt set in stone. Can be less or can be more. Its negotiable.
I get your point.

I also consider how VA has made it illegal to sell real estate with a real agent or a lawyer. I don't understand all the particulars. I do understand such laws allow realtors and lawyers to strong arm on pricing and guarantees them a piece of the financial sale on every transaction, which I think is wrong. Even though I see how it is prudent and avoid problems. I tend to think if you can make me use a service you can also dictate what they have to charge for said service ...and it should be no more than twice decent wage. Or the powers could just stay out of business.
Old 03-19-2019, 11:20 AM
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If I'm correct lawyers have been pretty much cut from the closing process now days. You have a standard contract then a title agency does everything from there.

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