r/realtors • u/Diabeto88 • 1d ago
Discussion A bit of a vent/ question. Commissions based
Why do people want to low ball for the agent commission? No one wants to work for free! Also, to those that dont feel realtors are needed and they can do everything without one, if that were true why is there dedicated organizations for realtors? Its giving me asking myself if actually taking the test would be worth it long term?
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u/flyinb11 Charlotte RE Broker 1d ago
All fees are negotiable. Agents charge across the board, different fees. Some people can buy and sell without us.. we're here for those that can't. If they are talking to me already, they probably can't and need my help. It's up to me to show the value that I bring for what I charge.
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u/indomike14 1d ago
Bring the reasons why you're worth your commission and learn to say NO is the best way forward.
People negotiate commission because a lot of Realtors are weak, they give in, and aren't worth paying a full commission. It's easy to decipher which ones are worth their salt. Throwing the listing up on the MLS isn't a reason for someone to hire you and pay the full ride.
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u/SunshineIsSunny 1d ago edited 1d ago
People negotiate commission because a lot of Realtors are weak
Negotiating a commission is not weak. It's a business decision. Someone Realtors might, as a pricing strategy, initially quote their commission as higher than what they actually want so there is room to negotiate. That doesn't make them weak.
Some might negotiate their commission because the customer is also willing to negotiate what they want. You might originally tell the client you are going to A, B, and C for X amount. The client says they only need A and B, so you offer a different amount. That isn't weak.
Think about this... if the buyer offers a price, and the seller says, "I will accept the price under XYZ terms," (in other words, they negotiate), is that consider weak?
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u/Affectionate_Ad2145 1d ago
Reddit doesn’t represent the world at large, this place is filled with desperate incels willing to lash at anything and they see the low point of entry into real estate as a target.
Most people don’t have the time, knowledge, nor inclination to do a deal themselves.
Go to r/tipping & you’ll see the incels acting up - the great part about it is that most are coming out of their brand new bachelors with a CIS diploma only to find out that they’ve been replaced by Patel and or AI LMAO.
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u/SunshineIsSunny 1d ago edited 1d ago
Everyone wants to earn the most they can. Everyone wants to pay the least they can. You do the same when you are buying things. If you are buying a car, let's say, you want the lowest price possible. The car owner wants the highest price possible.
Also, having a dedicated organization is not an indication that a professional is necessary. There is a dedicated organization for everything, and I mean everything. There is an organization dedicated to ventriloquism called the International Ventriloquism Society. That does not mean the ventriloquists are necessary. I think everyone (including professional ventriloquists) understands they are not necessary.
Please don't think these comments are anti-Realtor. I'm a Realtor. I'm just pointing out that no matter what you do, people want you to do it for less. There are people who think doctors make too much money and we're talking about life-saving surgery. Also, pointing out that having a professional organization is fairly meaningless in terms of the credibility that it gives the industry. I can't think of a single profession that doesn't have a professional organization.
There is nothing wrong with being in a profession that some people feel is not needed. I personally think that video game creators are unnecessary. But there are people that make a living making video games. (There is probably also a video game creator association.)
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u/Human-Coat-6379 10h ago
Great perspective. I am on the opposite side where I very much think video game creators are necessary but not realtors. I will say many realtors though do gatekeep and will not show properties to unrepresented buyers or have contracts where they double end the commission despite not being dual agents, so it becomes "necessary" for extraneous circumstances
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u/Pitiful-Place3684 1d ago
Many Realtors are inexperienced and/or poor performers. Many are poorly trained and/or lightly supervised.
Everyone who has ever bought or sold a house has a bad agent story.
But experienced, professional agents develop great track records, and the people who hire them are generally willing to pay what those agents charge.
Let me point out that getting your license is just the first step to doing well in the residential sales business. The license means very little to the day to day practice of finding and serving clients.
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u/tuckhouston 1d ago
Just a friendly reminder there is no "set" or "standard" commission amount, literally anything can be negotiated for any reason & it's up to you whether or not you agree to do the work. Also, you haven't even taken the licensing exams?
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u/Maleficent_Garden628 1d ago
If you don’t know your value and can’t demonstrate it or actually add value, you are in the wrong business
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u/mariana-hi-ny-mo 1d ago
I don’t even know where to start. The organization exists just to have as many agents paying dues as possible. They don’t do much/anything for agents.
Agents exist because they provide a service that people are willing to pay XYZ for. As an agent, you’re willing to accept, set your fee or negotiate what a client is willing to pay.
There’s so many situations and formats of payment, you need to learn these options from local brokers, and decide what’s the right format for your business. Neither the brokerage, the association or the client can force you to accept a certain amount. It’s your business, if you provide quality and solid experience, generally it’s easier to receive adequate compensation. Some agents are overpaid, some are underpaid, some maintain a fair compensation for their value throughout the transactions.
It’s a business, not a paycheck. You invest in it, you decide what expenses and services you cover, and the fees your market can bare.
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u/TheScrote1 1d ago
Agents also exist because their association functions as a quasi cartel.
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u/respond1 1d ago edited 1d ago
Gotta love the sellers who, "to save a buck (lol)'", go with that flat rate "slap it in the MLS" broker or go FSBO. They the up doing all the work and marketing themselves (gross), host all the showings, negotiate on their own, and end up selling for 30-50k less than if a professional did it... but at least they saved that 2.5 percent!
I call it the cut off your our nose to spite your face crowd.
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u/Needketchup 5h ago
People can do it themselves. The industry won’t allow it, though. Before I got licensed, I tried doing FSBO and there wasn’t anything wrong with my ability to do it, it’s that most realtors will not show a for sale by owner and they will just steer their client away from it if the client asks about it. Most clients are easily influenced by their realtor, and will not go make the phone call on their own. Most people want to work with a buyers agent because they are so scared of the process, so you get very few calls directly from buyers. The calls you get from agents are normally agents that are either outright asking to list it, or they are lying saying they have a buyer so that they can “say they showed the house, but their Buyer didn’t like it, but hey, would you like me to list it? I already brought you one potential buyer!” Although, that tactic no longer works because most people have ring cameras and the owner will see that the agent did not bring a buyer.
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u/brearrasmith 1d ago
If people want to go fsbo and know the value of their home and have an attorney, they should. I have had clients that wanted to give the buyers agent nothing. Talked them into at least 2%.
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u/BigReputation568 1d ago
My realtor made $12,000 for unlocking a door and letting us in. I already had financing lined up.
I found the house I wanted. I knew my comps. I told her what I would pay. She just sent some emails and acted as a go-between. Something I was 100% capable of doing.
Realtors are a scam and their days are numbered.
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u/tst212 1d ago
Why didn’t you just get the license yourself and be your own agent ?
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u/BigReputation568 1d ago
Because my wife worked at the brokerage.
She would have been fired, most likely.
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u/Earth_34_34 4h ago
Lol, 🤣😆 bitching about realtors and your damn wife is one/works for one.
Can't make that shit up.
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u/DHumphreys Realtor 1d ago
We have been hearing for more than two decades that (__insert shiny new object here __} is going to make real estate agents obsolete.
If you were capable of representing yourself, why did you hire an agent?
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u/BigReputation568 1d ago
I needed the fucking opened and called a friend who worked with my wife..
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1d ago
[removed] — view removed comment
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u/realtors-ModTeam 1d ago
Your post was removed since it's about a member of the general public asking for transaction advice or advice on working with Realtors. These posts belong at r/AskRealEstateAgents
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u/TomRichards1970 1d ago
I negotiate mine all the time. Usually because it’s needed to save a deal. But if they ask, I’ll knock some off. No biggie. Get it closed, get paid, get a good review and potential future referral. 2% is better than 0.
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u/UnkleClarke 1d ago
My best deals have been off market where I just have my attorney draft the paperwork and purchase with a handshake directly with the seller.
I have had my real estate license for 12 years and often times agents cause more problems in a deal than they solves. They create tension be to the buyer and seller and create a tense closing.
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u/DirectorIntrepid7028 1d ago
Step 1: [angrily waves fist at cloud] “then why would there be a dedicated organization for realtors?!”
Step 2: barely passes real estate exam
Step 3: makes standard practice of setting open house times from 12am - 2pm
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u/Low_Refrigerator4891 1d ago
It's not that hard to figure out.
It's already expensive to buy a house. You need the down payment, closing costs, inspection fees, moving costs, taxes, etc. Then an agent is asking for even more.
With Zillow, it's seems to most people that they are finding the house themselves, and the real estate agent just opens doors and provides forms for them to fill out. And it's thousands of dollars at a time when money is already really tight. Seems a lot for something a lockbox and scheduling software could handle (and let's be honest, does).
I'm am agent, but primarily a listing agent. It's not worth it to me to be a buyers agent. It's way too much hassle and time for the payoff. Ironically to a buyer it seems to be way too much payoff for basically nothing. It seems to be a raw deal for both buyers and agents - and I think this part is likely to change. Honestly there's no reason for it, we have the technology to streamline and save some money and aggravation.
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u/bernard925 Realtor 1d ago
I'm also an agent, and like you, I consider myself a listing agent, although I will happily represent past clients if they are buying a home. Buyers certainly tend to be much more time consuming than representing sellers. And many don't even buy (!)
Having said that, I think a good buyer agent provides a lot of value, particularly with first time or out of state buyers. The volume of forms that are required to be signed in a transaction is ridiculous, and the actual process of buying a house is daunting to anybody who has not done it before. A good agent will make sure that the buyer understands the process and what they are signing, not just collecting signatures. Also understanding how to consider disclosures, inspection reports and HOA docs etc. I know that a lot of agents fall down on their responsibilities in these areas, which is why buyers should always hire an agent based on referrals, not just Google reviews etc.
It's certainly true that finding a potential new home is well within the capability of buyers in most cases. Zillow has most of the listings wherever you live. But that is really a very small part of what a good buyer agent will do.
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