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Has Achieved Nirvana |
https://www.cnn.com/2024/03/15...ettlement/index.html
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| (self-titled) semi-posting lurker Minor Deity  |
Ugh, I'm thinking that in the long wrong this will benefit buyers and sellers, but in the short run, it could just cause chaos. So I need to read about it closely and try to figure out if it's going to impact me... Wait, except, no, it's not because we already have a signed buy-sell agreement, so whatever will change doesn't impact us.... right?
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| Has Achieved Nirvana |
https://www.msn.com/en-us/mone...finance-verthp-feeds
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| (self-titled) semi-posting lurker Minor Deity |
Well, unless something goes really south in the next few weeks, by July, we'll not only be moved, but probably already unpacked. So, I guess that's good in that I don't have to worry about it... But I wonder how much money a different model would save the buyer.
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| Has Achieved Nirvana |
We have friends who are realtors. I'll try to reach out and see what their take is.
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| (self-titled) semi-posting lurker Minor Deity |
I have read that it takes a long time for an agent to get established and actually start making any money. I would imagine that someone with a well-established career would be ok, but this will probably make it even harder for people trying to get into the business. It’s an odd model, where the agent does all kinds of work without pay until the very end. And they have all kinds of hidden costs. And probably have clients that take up a long of time and then disappear without a sale… Anyway I’ll be curious to hear your friends’ take.
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| "I've got morons on my team." Mitt Romney Minor Deity  |
I suspect that this change will work to advantage the better agents at the expense of the weaker/lazier agents. That advice, and $4.50, might get you a cup of coffee at Starbucks. I'm not a student of the real estate market. My casual logic tells me that that fixed % commission structure does not fully encourage people who really "make the market" by bringing buyers and sellers together effectively. It may also have given too much payoff to the people who were good at getting listings and not enough to the people who beat the pavement taking people to houses. On the other side of the coin, it may advantage the most savvy home buyers/sellers and people selling high end homes over the newbies and people with less income. We'll just see how it plays out. | |||
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| "I've got morons on my team." Mitt Romney Minor Deity |
What's pretty clear from the empirical literature is that agents and home buyers/sellers do not necessarily have the same interests. Your agent isn't really on your side. Unless you are time-pressed, YOU want to sell at a price that fully reflects the home's value. That's a value you don't really know. But your agent may prefer you to sell a month early at a lower price. Waiting that extra month might net you an extra $50K but the agent only gets $1,500. In that same month, the agent can do work to nail down other sales with a personal value to him/her of well in excess of the extra $1,500 received from doing the extra work to get you your best value. One thing we know from the evidence is that agents who sell their own homes tend to get a higher price for it than you get for your otherwise identical home. Rutherford, R. C., Springer, T. M., & Yavas, A. (2005). Conflicts between principals and agents: Evidence from residential brokerage. Journal of Financial Economics, 76(3), 627–665. | |||
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| (self-titled) semi-posting lurker Minor Deity |
Yeah, that's pretty telling. Also this:
Around here, I have noticed that the person "on duty" at open houses is never the listing agent. It's always someone younger, connected to the agency, but not the listing agent. I always wonder if those folks are getting an hourly wage or what. And if so, who pays them, and when.
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| "I've got morons on my team." Mitt Romney Minor Deity |
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Minor Deity |
I get the impression that newbie agents are usually the ones babysitting open-houses, and they are not paid for their time. The rationale is the the newbies can use open-houses as opportunities for experience and exposure, maybe pickup new clients from visitors who have not already have agents of their own.
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| (self-titled) semi-posting lurker Minor Deity |
Ah yes, the old “do it for the exposure model” but I wonder how often it actually works out that way.
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Has Achieved Nirvana |
Got a license. Acted as though I was selling real estate for a while. Became familiar with a number of agents and practices. Familiarity breeds contempt.
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| Does This Avatar Make My Butt Look Big? Minor Deity  |
The idea that I should have to pay 6% to sell a great house in a hot market is nuts. Let them compete on price like everyone else. Some may charge a flat fee. Some may work by the hour. Some may work on commission. Fine. The good ones will do great. | |||
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| czarina Has Achieved Nirvana  |
how would one go about finding out if a house sold in 2020 is part of the settlement? I thought I had read months ago that the settlement would cover sales that go back that far.
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