Author Topic: How to Get a Better Deal From a Real Estate Agent  (Read 2828 times)

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Offline WTTCHMN

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How to Get a Better Deal From a Real Estate Agent
« on: October 24, 2019, 07:17:20 PM »

Offline Agent Joe

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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"?
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Offline qwerty

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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

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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.

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Offline USCTrojanCPA

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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. 
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Offline USCTrojanCPA

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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
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Offline Soylent Green Is People

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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

My .02c

SGIP

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Offline best_potsticker_in_town

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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.
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Offline Compressed-Village

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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.

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Offline Cornflakes

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Re: How to Get a Better Deal From a Real Estate Agent
« Reply #9 on: January 08, 2020, 03:42:04 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"?

Poor analogy. I am an old guy and I have known a few agents that are high school pass (or even less).

Offline USCTrojanCPA

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Re: How to Get a Better Deal From a Real Estate Agent
« Reply #10 on: January 11, 2020, 07:20:36 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"?

Poor analogy. I am an old guy and I have known a few agents that are high school pass (or even less).

That's the problem, it's way too easy to get a real estate license.  There's no educational requirement like getting a college degree to qualify to sit for the real estate exam or having to take specific classes and the exam is a super easy (I think I studied for all of a few days and passed it on the first go around).  I heard something like about 1 in 10 people in CA have or have had their real estate licenses at some point, that's just nuts.  That being said, even though it's easy to get a real estate license doesn't mean that you'll start making money.  As with other sales careers, I'd venture to say that the same assumption of the top 20% of realtors making 80% of the commissions holds true in the realtor world. 

From my experience, I would group agents into the following 3 basic types...

1. The good agents - they are a pleasure to work with, very transparent, great communicators, no drama, no lies/BS, and really work to complete a transaction where all 4 parties are happy with how the transaction progressed.

2. The serviceable agents - these are the agents that know how to close a smooth transaction without any issues or drama.  Once there are some kind of issues with the transaction, they begin to fall apart and/or become overly dramatic because they don't do well with pressure or are fairly inexperienced and/or can't think outside the box.   

3. The "I want to put my head through a wall working with this agent" agents - these are the agents that make a transaction painful.  They can be arrogant/know-it-alls, don't know the market, can't set proper expectations for their clients, don't communicate well, aren't responsive, pushy, lie, put their commission ahead of their clients, and are basically a used car salesperson.

Funny story, I had one of those last category of agents years ago try to give me a lecture of I'm doing a disservice to the realtor community by "cheapening" the profession because they found out that I gave the buyer a commission rebate.  I politely told that agent to mind their own business and that if my broker doesn't have a problem me providing rebates to my clients then they shouldn't have a problem with it either.  haha
« Last Edit: January 11, 2020, 07:32:31 AM by USCTrojanCPA »
Martin Mania, CPA
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Often imitated....Never duplicated!

 

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