Author Topic: How to Get a Better Deal From a Real Estate Agent  (Read 1502 times)

0 Members and 1 Guest are viewing this topic.

Offline WTTCHMN

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 15
  • -Received: 299
  • Posts: 1875
How to Get a Better Deal From a Real Estate Agent
« on: October 24, 2019, 07:17:20 PM »

Offline Agent Joe

  • New Home Realtor
  • Tourist
  • *
  • Thanks
  • -Given: 5
  • -Received: 1
  • Posts: 16
  • Gender: Male
  • New Home Realtor
    • Joe & Judy Real Estate
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #1 on: October 26, 2019, 11:53:46 PM »
I didn't bother reading through the whole article because it sounded like an outsider trying to give "advise" to other outsiders. As an agent, I will say this...if you don't expect the agent to show you more than a few homes and spend a lot of time with/for you, then go ahead ask for a reasonable rebate nicely. Otherwise, if you expect full service, then expect to pay full price. Don't nickel and dime someone who can save or waste you thousands of dollars. Think about it, would you ask your lawyer, CPA or doctor for a "rebate"?
Joseph Du
Cell: 949-393-0835
Email: joe@joenjudy.com
WeChat: MasterJoeJoe
CalDRE: 02066402
Specialized in new homes and residential real estate investing.

Offline qwerty

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2444
  • -Received: 1564
  • Posts: 7099
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #2 on: October 27, 2019, 08:22:45 AM »
I didn't bother reading through the whole article because it sounded like an outsider trying to give "advise" to other outsiders. As an agent, I will say this...if you don't expect the agent to show you more than a few homes and spend a lot of time with/for you, then go ahead ask for a reasonable rebate nicely. Otherwise, if you expect full service, then expect to pay full price. Don't nickel and dime someone who can save or waste you thousands of dollars. Think about it, would you ask your lawyer, CPA or doctor for a "rebate"?

Lawyers and CPAs charge by the hour. RE agents do not. I think most people think agents are overpaid relative to the level of effort to sell a home (on average).  The rebate is just a a way to try to recalibrate the comp structure.

To sell a $1M home, the commission is what, $25k to the buyer and $25k to the sellers agent?  These days I think most people find the houses on their own via Redfin and tell the agent what house they want to go see. If I go see six house and end up buying house number six, the buyers agent will have spent less than 10 hours showing homes. Let’s say another 10 hours on paperwork and scheduling appraisals, inspections, etc. so for about 20 hours worth of work an agent gets 25k, that’s about 1,250 an hour. Lawyers charge $200-500/hour (or more at the National/international law firms) CPAs charge less. There is also the perception that anyone can be a real estate agent, not the case for lawyers and cpas.

Then throw in that prices have skyrocketed in Southern California, so the agents are getting even more for the same level of work.

The answer to all this is USC Trojancpa (Martin).

Offline meccos12

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 43
  • -Received: 81
  • Posts: 401
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #3 on: October 30, 2019, 03:27:37 PM »
I didn't bother reading through the whole article because it sounded like an outsider trying to give "advise" to other outsiders. As an agent, I will say this...if you don't expect the agent to show you more than a few homes and spend a lot of time with/for you, then go ahead ask for a reasonable rebate nicely. Otherwise, if you expect full service, then expect to pay full price. Don't nickel and dime someone who can save or waste you thousands of dollars. Think about it, would you ask your lawyer, CPA or doctor for a "rebate"?

Spoken like a true realtor.

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2165
  • -Received: 1688
  • Posts: 8381
  • Gender: Male
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #4 on: October 30, 2019, 03:51:29 PM »
Here's my take on the matter.  I'm of the belief that the commission structure is an old broken dinosaur.  An agent in the Inland Empire make less 1/2 of what an agent in Orange County makes for doing basically the same work and all because the price of the home is higher in Orange County.  So I agree with Qwerty, Orange County realtors are overpaid for that they do and how much time they put into a transaction in general.  Because I work under a small broker I can provide my clients a rebate because I don't have my broker's hand in my pocket taking any portion of my commission.  For me, a rebate has always been the right thing to do and I will continue provide them to my clients until the day that I retire. 
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2165
  • -Received: 1688
  • Posts: 8381
  • Gender: Male
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #5 on: October 30, 2019, 03:54:11 PM »
I didn't bother reading through the whole article because it sounded like an outsider trying to give "advise" to other outsiders. As an agent, I will say this...if you don't expect the agent to show you more than a few homes and spend a lot of time with/for you, then go ahead ask for a reasonable rebate nicely. Otherwise, if you expect full service, then expect to pay full price. Don't nickel and dime someone who can save or waste you thousands of dollars. Think about it, would you ask your lawyer, CPA or doctor for a "rebate"?

Spoken like a true realtor.

What's funny is that I got scolded like a little kid by a long time Turtle Rock agent who found out that I provided a rebate to my buyer.  She basically told me that I was no better than Redfin and was degrading the profession and that I shouldn't be providing rebates.  I politely told her that if my broker doesn't have a problem with my rebates then neither should she.  haha
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

The following member(s) thanked this post:


Offline Soylent Green Is People

  • Abiding Dude. Housing focused
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 670
  • -Received: 952
  • Posts: 1992
  • Mmmm....people.....
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #6 on: October 31, 2019, 10:48:25 AM »
As both an NMLS and Realtor licensee, a few considerations from over 3 decades of experience:

The agent provided a classic "irresistible force (systemic change) vs immovable object (buggy-whipped jobs)" post. Reread the response but in the context of the writer being a Travel Agent or a Newspaper Reporter - not a Realtor - and you'll see what I see, The end result is inevitable: systemic change is coming, It always wins. If you don't recognize it soon peril awaits.

Some Realtors are on that forward edge of change. They will likely thrive in the years to come. The remainder? Well, let's just say retaining only customers who "nicely" ask for a rebate isn't a well conceived plan for dealing with the shift dead ahead of you. It's akin to a T-Rex looking up in the sky and admiring that ever brightening light in the sky, not realizing it's fate is sealed.

My .02c

The following member(s) thanked this post:


Offline best_potsticker_in_town

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 2
  • -Received: 51
  • Posts: 267
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #7 on: October 31, 2019, 01:19:53 PM »
I am a part-time agent and represent mainly close friends and family that need assistance on the buy-side. I take them around, narrow down options, write offers, etc. My representation always comes with an agreement before any showings that a certain portion of my commission proceeds will be given back to the buyer after close of escrow. As USCTrojanCPA states, it's the right thing to do. In my opinion, it also makes the buyer value the agent's time more and incentivizes them to do their own homework/research.

The following member(s) thanked this post:


Offline Compressed-Village

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 269
  • -Received: 192
  • Posts: 1512
Re: How to Get a Better Deal From a Real Estate Agent
« Reply #8 on: October 31, 2019, 01:54:20 PM »
Soylent for loans and UscCpa for buyin and selling for the wins.

The following member(s) thanked this post:


 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters



Related Links

Recent Posts