Comments on: How much is your agent being paid to sell you a house? http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/ Sat, 11 Feb 2012 07:12:54 +0000 hourly 1 http://wordpress.org/?v= By: sandman http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11147 sandman Sat, 29 Mar 2008 03:33:20 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11147 <i>I suppose knowing the bonuses exist gives buyers leverage when buying a home.</i> Problem is, the buyer will never find out about it. I suppose knowing the bonuses exist gives buyers leverage when buying a home.

Problem is, the buyer will never find out about it.

]]> By: Russ http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11146 Russ Sat, 29 Mar 2008 01:58:16 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11146 "Would it be possible for a future where anybody that wants to buy or sell a home quickly go out and get themselves a real estate license?" Yes, it would be possible. A bit cumbersome and front-end loaded in terms of time/cost. In AZ, there is 90 hours of classroom time required. You can fit that it in a couple of weeks if you can do it full time. Weekends/evenings would take longer. School fees. State exam/fee. Extra 6 hours of contract writing class. Modest state license fees. If you want MLS access, NAR, AAR, plus local (e.g. PAR - Phoenix Assoc. of Realtors) membership fees. Lockbox access key fee. You can hang your license with a broker for under $100/month, plus transaction fees or have a percentage of commission deal. It could be worth it if you are definitely going house shopping. Maybe take the class, pass the exam, and hold off on everything else until you want to start your search. I think that you have a year from passing the exam to activate your license. “Would it be possible for a future where anybody that wants to buy or sell a home quickly go out and get themselves a real estate license?”

Yes, it would be possible. A bit cumbersome and front-end loaded in terms of time/cost.

In AZ, there is 90 hours of classroom time required. You can fit that it in a couple of weeks if you can do it full time. Weekends/evenings would take longer. School fees. State exam/fee. Extra 6 hours of contract writing class. Modest state license fees.

If you want MLS access, NAR, AAR, plus local (e.g. PAR – Phoenix Assoc. of Realtors) membership fees. Lockbox access key fee. You can hang your license with a broker for under $100/month, plus transaction fees or have a percentage of commission deal.

It could be worth it if you are definitely going house shopping. Maybe take the class, pass the exam, and hold off on everything else until you want to start your search. I think that you have a year from passing the exam to activate your license.

]]> By: MikeC http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11145 MikeC Sat, 29 Mar 2008 01:08:00 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11145 I say this half tongue-in-cheek... But considering the large amount of money involved in real estate commissions.... Would it be possible for a future where anybody that wants to buy or sell a home quickly go out and get themselves a real estate license? (1) The concepts involved in getting a real estate license are not rocket science. It is not like scientists and engineers leave their jobs because selling real estate is more mentally engaging. (2) I\'ve seen ads that say \"get your real estate license in 2 weeks\" or something like that. If using up a couple of weeks to get a stupid real estate-selling license meant that I can save $20,000 on a transaction (that would otherwise go to somebody who did very LITTLE work for it), I would spend the two weeks to get the license without thinking about it twice. Sure, there\'s an annual fee to having the license, but I would think it is far lower than the amount I\'\'m saving. I say this half tongue-in-cheek…
But considering the large amount of money involved in real estate commissions….

Would it be possible for a future where anybody that wants to buy or sell a home quickly go out and get themselves a real estate license?

(1) The concepts involved in getting a real estate license are not rocket science. It is not like scientists and engineers leave their jobs because selling real estate is more mentally engaging.

(2) I\’ve seen ads that say \”get your real estate license in 2 weeks\” or something like that.

If using up a couple of weeks to get a stupid real estate-selling license meant that I can save $20,000 on a transaction (that would otherwise go to somebody who did very LITTLE work for it), I would spend the two weeks to get the license without thinking about it twice.

Sure, there\’s an annual fee to having the license, but I would think it is far lower than the amount I\’\'m saving.

]]> By: JimAtLaw http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11144 JimAtLaw Fri, 28 Mar 2008 18:30:41 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11144 Actually, to be more clear, you should be able to make up anything up to a 5% difference even <i>without</i> a special bonus offering on the property, and if there <i>is</i> one, you can throw that in on top. Igor's word: firesale Actually, to be more clear, you should be able to make up anything up to a 5% difference even without a special bonus offering on the property, and if there is one, you can throw that in on top.

Igor’s word: firesale

]]> By: JimAtLaw http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11143 JimAtLaw Fri, 28 Mar 2008 18:27:31 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11143 Good idea Linenoise - in fact, if you're 5% off or less, many desperate Realtors should be more than happy to make up the difference themselves, assuming you're using one. Good idea Linenoise – in fact, if you’re 5% off or less, many desperate Realtors should be more than happy to make up the difference themselves, assuming you’re using one.

]]> By: Linenoise http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11142 Linenoise Fri, 28 Mar 2008 16:40:27 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11142 I suppose knowing the bonuses exist gives buyers leverage when buying a home. "They said your offer was too low." "Well, how about you take some of your bonus money to raise it a little?" I suppose knowing the bonuses exist gives buyers leverage when buying a home.

“They said your offer was too low.”

“Well, how about you take some of your bonus money to raise it a little?”

]]> By: JimAtLaw http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11141 JimAtLaw Fri, 28 Mar 2008 16:37:41 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11141 Don't assume it Josiphos - there are plenty of suckers out there, and plenty of so-called buyer's agents who are willing to fabricate multiple offers, pending price increases, or other falsehoods to get a buyer to pay their huge commission and bonus. Don’t assume it Josiphos – there are plenty of suckers out there, and plenty of so-called buyer’s agents who are willing to fabricate multiple offers, pending price increases, or other falsehoods to get a buyer to pay their huge commission and bonus.

]]> By: Josiphos http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11140 Josiphos Fri, 28 Mar 2008 16:31:21 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11140 I think its harmless. "Only good with a FULL PRICE OFFER" Yeah like that will happen. I think its harmless.

“Only good with a FULL PRICE OFFER”

Yeah like that will happen.

]]> By: seamusfurr http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11139 seamusfurr Fri, 28 Mar 2008 15:53:03 +0000 http://housingdoom.com/2008/03/28/how-much-is-your-agent-being-paid/#comment-11139 The very idea of a buyer's agent getting paid a % of the sale price is worse than a conflict of interest -- it's a disincentive. Given the recent studies about <a href="http://www.techcrunch.com/2008/03/25/computer-vs-realtor-computer-wins-twice/" rel="nofollow">Redfin saving buyers a buttload of money</a> on every purchase, we have to assume that the mass-market buyer's agent is a threatened species. The other interesting thing here is that every bubble and bear market breeds its own corruption. The bubble gave us negative-equity loans and mortgage fraud; now the bust is handing us secret buyer's agent kickbacks. The very idea of a buyer’s agent getting paid a % of the sale price is worse than a conflict of interest — it’s a disincentive.

Given the recent studies about Redfin saving buyers a buttload of money on every purchase, we have to assume that the mass-market buyer’s agent is a threatened species.

The other interesting thing here is that every bubble and bear market breeds its own corruption. The bubble gave us negative-equity loans and mortgage fraud; now the bust is handing us secret buyer’s agent kickbacks.

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