3 New California Pacific Communities in Portola Springs Late 2021
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always_looking
New member
msuum said:
Sorry noob here. What does that mean? And are both lapis/sierra sales offices open now? Hoping to tour soon.
irvinehomeowner
Well-known member
Market too hot... no need for referral fees. 
sleepy5136
Well-known member
more like corporate greed. the exact reason why liberals hate capitalism.irvinehomeowner said:Market too hot... no need for referral fees.
sleepy5136
Well-known member
greed is what led to the financial crisis in 2008.iacrenter said:
While I would love to get part of the referral fee myself if I were to buy a new home, I'm not sure if it's greed on their end. It's just a business. The same reason you would sell your home at higher prices now than last year. Also they're not really entitled to give any money to anyone. It's been like a bonus for both the realtor and the buyer.
sleepy5136
Well-known member
Definition of greed: intense and selfish desire for something, especially wealth, power, or food.Mety said:
Not giving out commission as your policy and never changing it is different than "oh let me see how hot the market is to determine whether to give commission or not". We can agree to disagree.
sleepy5136
Well-known member
That's a good question actually. TBH I think the commission structure is outdated. With the internet available to people, RE agents are going to become less favorable if it's coming from the seller/builder. There needs to be a fundamental change in how RE agents get paid. Builders can technically factor that in when listing a home.Mety said:
FYI I'm not here discounting the excellent RE agents out there that do fantastic jobs for their clients. But with data all over the place, I really don't feel like sellers should be paying 4%+ on a given transaction.
Another thing I think needs to be redesigned is the offer process. I know some people may not like this idea but I do think offers should be transparent to every single buyer that is interested in the house. The way it's currently done gives room for a lot of shadyness in deals and can really screw the buyers/sellers. Why not have a live session for all interested buyers that are interested in the property to have a bidding session? With covid, have a zoom session.
TLDR: The current home buying/selling process needs to be changed
We might have gotten too deep on different subjects.
For Broker Co-op in new builds, it was nice referral fees that the builder gives to the buying agent if he/she brings a client to purchase the home. We all know that agent really does nothing after showing the model homes. The whole process is up to the buyer to sign and go through all the necessary steps to finish closing the contract. Knowing all that, nice agents would split that fees with the client, but there is no "law" that the agent has to share some percentage to the client. The same way for the builder. They don't have any enforced regulations that they need to give that co-op fees to the realtor they bring. When the market is hot, buyers can just walk-in themselves without bringing in their agents since there is no co-op fees anyways. When the market is cold, the builder would try to increase the co-op fees so realtors can bring in their clients. I think it's just as simple as that. It's just a business and marketing in my mind. But if you see it as greed, then it is greed in your world.
For Broker Co-op in new builds, it was nice referral fees that the builder gives to the buying agent if he/she brings a client to purchase the home. We all know that agent really does nothing after showing the model homes. The whole process is up to the buyer to sign and go through all the necessary steps to finish closing the contract. Knowing all that, nice agents would split that fees with the client, but there is no "law" that the agent has to share some percentage to the client. The same way for the builder. They don't have any enforced regulations that they need to give that co-op fees to the realtor they bring. When the market is hot, buyers can just walk-in themselves without bringing in their agents since there is no co-op fees anyways. When the market is cold, the builder would try to increase the co-op fees so realtors can bring in their clients. I think it's just as simple as that. It's just a business and marketing in my mind. But if you see it as greed, then it is greed in your world.
sleepy5136
Well-known member
That is literally the definition of corporate greed... Doing business does not mean allowing a buyers agent to get a $0. Maybe you don't care because you're not the agent. But I do not think an agent should get $0. You mentioning agents do "nothing" after showing clients the model home is hilarious. I'll love to see an agents opinion in this forum about that. I'm 100% sure it's not greed in my world. Go ask realtors about this and see their thoughts.Mety said:
Maybe you're fine as a buyer that an agent doesn't get paid for new construction homes, but what if you were the agent representing the buyer? Maybe you'll really do "Nothing" since you're not getting paid
sleepy5136 said:That is literally the definition of corporate greed... Doing business does not mean allowing a buyers agent to get a $0. Maybe you don't care because you're not the agent. But I do not think an agent should get $0. You mentioning agents do "nothing" after showing clients the model home is hilarious. I'll love to see an agents opinion in this forum about that. I'm 100% sure it's not greed in my world. Go ask realtors about this and see their thoughts.Mety said:
Maybe you're fine as a buyer that an agent doesn't get paid for new construction homes, but what if you were the agent representing the buyer? Maybe you'll really do "Nothing" since you're not getting paid
Yeah, let's hear from RE agents in this forum. What do you guys do after you go to the first showing with your clients to the new constructions? After signing that you rep your client, any more hands on works you guys are involved?
I guess there are some agents who really care about their client and give honest opinions and whatnot, but I'm talking about actual works like dealing the prices for the buyer, fighting any contingent status, getting the inspections done in a right way, and etc. These things, the buyer has to deal with directly for new builds as opposed to buying resales as you know well.
Also many people actually do go to the models homes without any agents. They directly work with the builder from the get go. There's been no co-op at all for such cases no matter how the market is doing. Increase and decrease of the broker co-op is completely up to the builder themselves. Again this is my own humble opinion.
My clients basically still ask me to review all the documents and ask their general home purchasing questions. I help coordinate home inspections and will be at the home inspection with them. I'm usually more hands on though because I will usually be doing the mortgage loan so I am much more involved through the process.
My question slightly off topic from RE greed. Do we know if IP is going to be building new community by the Highland pool/Altair area? Or some other builder? Highland is selling like crazy with view lots and internal both building faster than year ago. I am interested in new floor plan from IP in that area. Any insights into when and who could build there? Thanks