Posted on: 08th Feb, 2010 05:28 pm
WAKE UP says the U.S Dept. of Justice! See the links below where the Gov. is informing consumers, enough is enough with these huge realtor commissions!
Consumers need to be educated that Realtor Rebate has been completely legal for years in most states and the massive savings benefit it is for consumers. Unlike a few years ago, when realtors were on a 50/50 split with the real estate company they worked for, many realtors are now on a No Split Commission pay plan where they keep up to 100% of the commission points and don’t have to pay their company anything but a small $350.00 transaction fee. When a consumer encounters a Realtor charging a full 3 to 6% in Commission Points, they should simply find a Realtor who is willing to give them a much better deal and will ‘Share the Equity!’
Below is the 3% standard commission structure for Buyer’s Agents
$100,000 @ 3% = $3,000 A fair fee for the job.
$200,000 @ 3% = $6,000 A lot to just give away!
$300,000 @ 3% = $9,000 Way too much to give away!
$400,000 @ 3% = $12,000 Unbelievable amount to give away!
$500,000 @ 3% = $15,000 Just a plain absurd amount to give away!
$600,000 @ 3% = $18,000 There should be a laws against this give away amount!
$700,000 @ 3% = $21,000 Buyer is not thinking straight and needs mental help!
$800,000 @ 3% = $24,000 Buyer needs to be committed to a mental institution!
$900,000 @ 3% = $27,000 Buyer needs to be returned to their mental institution!
$1,000,000@3%= $30,000 Buyer is a Flat Liner, pull the plug!
If the U.S. Dept. of Justice is stepping in to inform consumers about these absurd realtor commissions, it’s bad! Click on the below U.S. Dept. of Justice web sites to learn about Realtor Rebates.
justice.gov/atr/public/real_estate/commission_table.htm
justice.gov/atr/public/real_estate/rebate_calculator.htm
justice.gov/atr/public/real_estate/index.htm
justice.gov/atr/public/real_estate/states_map.htm
Consumers need to be educated that Realtor Rebate has been completely legal for years in most states and the massive savings benefit it is for consumers. Unlike a few years ago, when realtors were on a 50/50 split with the real estate company they worked for, many realtors are now on a No Split Commission pay plan where they keep up to 100% of the commission points and don’t have to pay their company anything but a small $350.00 transaction fee. When a consumer encounters a Realtor charging a full 3 to 6% in Commission Points, they should simply find a Realtor who is willing to give them a much better deal and will ‘Share the Equity!’
Below is the 3% standard commission structure for Buyer’s Agents
$100,000 @ 3% = $3,000 A fair fee for the job.
$200,000 @ 3% = $6,000 A lot to just give away!
$300,000 @ 3% = $9,000 Way too much to give away!
$400,000 @ 3% = $12,000 Unbelievable amount to give away!
$500,000 @ 3% = $15,000 Just a plain absurd amount to give away!
$600,000 @ 3% = $18,000 There should be a laws against this give away amount!
$700,000 @ 3% = $21,000 Buyer is not thinking straight and needs mental help!
$800,000 @ 3% = $24,000 Buyer needs to be committed to a mental institution!
$900,000 @ 3% = $27,000 Buyer needs to be returned to their mental institution!
$1,000,000@3%= $30,000 Buyer is a Flat Liner, pull the plug!
If the U.S. Dept. of Justice is stepping in to inform consumers about these absurd realtor commissions, it’s bad! Click on the below U.S. Dept. of Justice web sites to learn about Realtor Rebates.
justice.gov/atr/public/real_estate/commission_table.htm
justice.gov/atr/public/real_estate/rebate_calculator.htm
justice.gov/atr/public/real_estate/index.htm
justice.gov/atr/public/real_estate/states_map.htm
You can cut and paste the above links in the URL address box as the w ww is not in front of the links.
Note: this is not an advertisement, just a U.S Government web site to inform buyers about legal rebates they can obtain thru realtors that offer them.
I buyer would simply di an online search of Buyer's Agent Rebates, Realtor Rebates, etc. to find thousands of realtors willing to give them this savings.
Note: this is not an advertisement, just a U.S Government web site to inform buyers about legal rebates they can obtain thru realtors that offer them.
I buyer would simply di an online search of Buyer's Agent Rebates, Realtor Rebates, etc. to find thousands of realtors willing to give them this savings.
Im not sure if you know this but the buyer doesn't pay the commision the seller does. And they sign an agreement when they list the property stating how much commision they are willing to pay. The buyer doesn't pay a dime to the realtors.
Bradley, come on! Anyone with any knowledge of how realtor commission works knows darn well that's BS!
Buyer doesn't pay a dime to the realtors? ARE YOU KIDDING??? Okay, then if the seller did not have to pay the realtor could the seller then sell the house to the buyer for 3% less? SO now, who really is paying the realterd?????
Bradley, you are a very smart guy, don't suddenly play nieve and lead consumers to believe that BS these realtors tell foolish buyers saying the seller pays their commission because you know good and Darn well it is BS!
These realtors are rapping consumers, that's why the U.S. Dept. of Justice is stepping in and informing consumers about Realtor Rebate savings.
Did you go to the US Dept of Justice websites above Bradley?
Do this Bradley, search this on line: Florida Realtor Rebate and tell us what you discover going on down there in Florida.
Waiting for your reply Sir................
Buyer doesn't pay a dime to the realtors? ARE YOU KIDDING??? Okay, then if the seller did not have to pay the realtor could the seller then sell the house to the buyer for 3% less? SO now, who really is paying the realterd?????
Bradley, you are a very smart guy, don't suddenly play nieve and lead consumers to believe that BS these realtors tell foolish buyers saying the seller pays their commission because you know good and Darn well it is BS!
These realtors are rapping consumers, that's why the U.S. Dept. of Justice is stepping in and informing consumers about Realtor Rebate savings.
Did you go to the US Dept of Justice websites above Bradley?
Do this Bradley, search this on line: Florida Realtor Rebate and tell us what you discover going on down there in Florida.
Waiting for your reply Sir................
I agree with BiBi, she speaks the truth Bradley and a the rest of you reading these posts need to realize that these realtors are not needed but to open doors and write a contract, Oh, and read the MLS, what a joke.
These realtors have been allowed to get away with murder through out the housing crisis and nobody has even questioned those rediculious commissions! There's why America's equity went, to the realtors!
For us who know, they are so over rated, but ignorant buyers and sellers just continue to let them Clock thier @ss on every transaction!
These realtors have been allowed to get away with murder through out the housing crisis and nobody has even questioned those rediculious commissions! There's why America's equity went, to the realtors!
For us who know, they are so over rated, but ignorant buyers and sellers just continue to let them Clock thier @ss on every transaction!
your all nuts.
I have a very good friend that is a realtor he works harder than anyone that i know. He works about 80 hours a week with some of the dumbest clients I have ever met. He does mostly short sales and some of these people shouldn't be allowed to drive a car nevermind buy or sell real estate.
He doesn't even get 2.5% on most transactions and the sales prices are very low in this area. He will be the first to tell you that most realtors are useless and lazy. But I will tell you I have never seen anyone earn a commision like he does with some of the crap he puts up with.
On another note, you don't have to use a realtor. You can do FSBO but if you choose to use a realtor and you choose to pay them 6% thats your own problem. There are plenty of realtors now days that will work for 4%. The consumer has choices and if they make bad choices they should live with it. Do you know the mark up on a mattress is about 300% I would like to see an article complaining about that or when you buy something at the grocery store for 2 bucks that was purchased for 13cents.
We all have choices as consumers some are smarter than others some don't care. This is why America is great.
He doesn't even get 2.5% on most transactions and the sales prices are very low in this area. He will be the first to tell you that most realtors are useless and lazy. But I will tell you I have never seen anyone earn a commision like he does with some of the crap he puts up with.
On another note, you don't have to use a realtor. You can do FSBO but if you choose to use a realtor and you choose to pay them 6% thats your own problem. There are plenty of realtors now days that will work for 4%. The consumer has choices and if they make bad choices they should live with it. Do you know the mark up on a mattress is about 300% I would like to see an article complaining about that or when you buy something at the grocery store for 2 bucks that was purchased for 13cents.
We all have choices as consumers some are smarter than others some don't care. This is why America is great.
Oh Bradley, save it! The same realtor friend would in a second and has probably cut the throats (figuretively speaking) of countless mortgage brokers who had litterally months of time and effort invested in a borrower and without ANY compassion or regards for that mortgage broker time and coerced and steered thier clients to his "Preferred Lender" and felt good about doing it too!
They turn my stomache how they could care less about brokers, but it's a mortal sin to question that ABSURD extraction of equity they pull on American buyers and Sellers at that BS 3 and 6%!
They turn my stomache how they could care less about brokers, but it's a mortal sin to question that ABSURD extraction of equity they pull on American buyers and Sellers at that BS 3 and 6%!
Actually that is incorrect. He was in the mortgage field for many years. I am his preferred lender. But if they are already working with someone he doesn't touch it because he doesn't want to lose business by coming off as pushy.
You must have had some bad experiences. Time to get over it. They are not all bad. I know plenty that are bad but thats why you pick the few good ones and work with them. The other losers will eventually get pushed out. With the way things have been the last couple of years it really seperated the boys from the men. The cheats liars and scumbags have all been pushed out of the business. There are few left but they won't be around too long.
All of us honest harding working brokers or lenders will survive because we provide good service and we do what we say we will.
You must have had some bad experiences. Time to get over it. They are not all bad. I know plenty that are bad but thats why you pick the few good ones and work with them. The other losers will eventually get pushed out. With the way things have been the last couple of years it really seperated the boys from the men. The cheats liars and scumbags have all been pushed out of the business. There are few left but they won't be around too long.
All of us honest harding working brokers or lenders will survive because we provide good service and we do what we say we will.
If its so easy I dare you to give it a try. All of you negative nancys would drop like flies. 3% is an average rate for what realtors do. Quit complaining and put action where your words are, try to get a license and then try and find clients to sustain 30-40 years of real estate transaction. HAHA nevermind you dont have what it takes. Hard work = good pay. I dare you to give it a try.... IM WAITING!!!
There are some nice rants on this topic but those ranting really have no idea what a Realtor's actual responsibilities are and how the funds are dispersed.
It is not the Realtor's job to "open the door". Our function is to facilitate the transaction. Some consumers are brighter than others and can do much of the initial search and attend an open house or two. It doesn't take a genius to figure out a reasonable value based on comparables or navigate to a home, most buyers are capable of this.
The truth is most buyers have no idea what a real estate transaction consists of. A vast majority don't know what a contract looks like or anything pertaining to escrow, state requirements, disclosures, party obligations, deliveries, contingencies, financing/underwriter guidelines, FHA/VA loan requirements, settlement, inspectors/contractors, appraisal guidelines, liens, etc. There are many aspects of a transaction that are simply not considered in these types of "informative" forums.
The average Realtor here does 1 transaction every 1-2 months. The average sales price in my area is $300,000.00. Assume 54,000.00 - 108,000.00 in total commissions. Now subtract 20-35% broker split and we have 18,900.00 ( lowest with highest split ) - 86,400.00 ( Highest with lowest split ). Consider any referral fees, roughly 25-30% self-employment tax, and the benefits/retirement real estate does not offer. Let us also account for the clients who do not close, the cost of licensing and associations, and continuing education.
At least 50% of the inventory in this area is distressed, most of these offer less than 3% total compensation. Foreclosure's and Short Sales have a much higher level of difficulty for buyers and inexperienced agents.
The "Buyer's Agent" commission structure featured above is a misleading joke. Commission for properties upwards of 600,000.00 is often less than 3% or a flat amount.
I am a Realtor working in Virginia, Maryland, and DC. I have been rebating up to 2% for the last three years. I have worked with short sales, foreclosures, traditional sales, investors, and new construction. I have never lost an EMD and have dealt with all types of clients.
If you are an "adept" purchaser, looking at mostly traditional sales, to purchase fairly quickly, are pre-approved, have a reasonable idea of what you want, aren't asking to see 100 homes, etc. You have a valid argument and a discount Realtor might be for you. If you have a carefree transaction and the Realtor gets 3%, you are head of the curve and yes partially compensating for the client that takes over a year to find the right home or decides not to buy at all.
If you have no idea about anything pertaining to a real estate transaction, or where to begin, calculating 3% and assuming someone is overpaid is ignorant. You could also vent about how much the president makes while only having meetings and shaking hands, he even gets free housing!
PS. Mortgage Brokers are working in direct conflict to the purchaser, trying to charge as much as possible while retaining the customer. A mortgage broker who justifies overcharging a purchaser because they have had to send more than one updated approval letter deserves to lose the client. Do not blame the Realtor because the client decided to compare good faith estimates.
It is not the Realtor's job to "open the door". Our function is to facilitate the transaction. Some consumers are brighter than others and can do much of the initial search and attend an open house or two. It doesn't take a genius to figure out a reasonable value based on comparables or navigate to a home, most buyers are capable of this.
The truth is most buyers have no idea what a real estate transaction consists of. A vast majority don't know what a contract looks like or anything pertaining to escrow, state requirements, disclosures, party obligations, deliveries, contingencies, financing/underwriter guidelines, FHA/VA loan requirements, settlement, inspectors/contractors, appraisal guidelines, liens, etc. There are many aspects of a transaction that are simply not considered in these types of "informative" forums.
The average Realtor here does 1 transaction every 1-2 months. The average sales price in my area is $300,000.00. Assume 54,000.00 - 108,000.00 in total commissions. Now subtract 20-35% broker split and we have 18,900.00 ( lowest with highest split ) - 86,400.00 ( Highest with lowest split ). Consider any referral fees, roughly 25-30% self-employment tax, and the benefits/retirement real estate does not offer. Let us also account for the clients who do not close, the cost of licensing and associations, and continuing education.
At least 50% of the inventory in this area is distressed, most of these offer less than 3% total compensation. Foreclosure's and Short Sales have a much higher level of difficulty for buyers and inexperienced agents.
The "Buyer's Agent" commission structure featured above is a misleading joke. Commission for properties upwards of 600,000.00 is often less than 3% or a flat amount.
I am a Realtor working in Virginia, Maryland, and DC. I have been rebating up to 2% for the last three years. I have worked with short sales, foreclosures, traditional sales, investors, and new construction. I have never lost an EMD and have dealt with all types of clients.
If you are an "adept" purchaser, looking at mostly traditional sales, to purchase fairly quickly, are pre-approved, have a reasonable idea of what you want, aren't asking to see 100 homes, etc. You have a valid argument and a discount Realtor might be for you. If you have a carefree transaction and the Realtor gets 3%, you are head of the curve and yes partially compensating for the client that takes over a year to find the right home or decides not to buy at all.
If you have no idea about anything pertaining to a real estate transaction, or where to begin, calculating 3% and assuming someone is overpaid is ignorant. You could also vent about how much the president makes while only having meetings and shaking hands, he even gets free housing!
PS. Mortgage Brokers are working in direct conflict to the purchaser, trying to charge as much as possible while retaining the customer. A mortgage broker who justifies overcharging a purchaser because they have had to send more than one updated approval letter deserves to lose the client. Do not blame the Realtor because the client decided to compare good faith estimates.
I was the first Realtor(R) in Cincinnati by and large to provide rebates to my buyers. It was a constant fight originally to get the other real estate companies to recognize that the rebates were legal.
Google my name at Americas News Online. It's got a piece on there about the original isssue.
For what it's worth, I don't think much of many Realtors(R), either. However, there are a core of us who are exceptionally professional and actually bring expertise to the table which is well worth our comissions.
I am a 10+ year veteran of the lending industry, 9+ year veteran of the real estate industry, a Nachi-Certified Infrared Inspector, and much more.
If you buy a house with me, you can be well assured that it's in good shape, we beat the seller down on price and your financing was the best.
Google my name at Americas News Online. It's got a piece on there about the original isssue.
For what it's worth, I don't think much of many Realtors(R), either. However, there are a core of us who are exceptionally professional and actually bring expertise to the table which is well worth our comissions.
I am a 10+ year veteran of the lending industry, 9+ year veteran of the real estate industry, a Nachi-Certified Infrared Inspector, and much more.
If you buy a house with me, you can be well assured that it's in good shape, we beat the seller down on price and your financing was the best.
the whole real estate business is nothing but oredatory. Losers whi can't get a job elsewhere for the most part, though there are some good ones, few, but some. they have no interest in getting you the best price, the lower they go less they make.My realtor did not even find my home. I did. He has 3 hours into deal and will ake 9,000. WHat a joke. He also committed me to a deposit of 20% when I specifically told him 1,000, Said the balance ws good faith deposit not at risk if I walked, until I tried to walk. Then the sleazy mortgage brokers. Why do I have to go through some convict to get a loan at good pricing with an 810 credit score, 3% debt ratio and more cash in the bank than I am borrowing. The inital fees were 2.2 percent with rebates of over 7500 towards closing. What is this shell game? By the end the rate for origination that came from bank was 3.58% and a credit of 1200with another "underwting fee" fee of 499 added. Had to fire them and risjk not clsing in time and still fighting the new slime ball.They want a copy of a check deposited. It exceeded scan limits so had to mail in. Who copies mail deposits? The fees a person pays to the sleazes who simply do a little paperwork (I did real estate loans for a legitimate firm right ut of college. We had about 6 hours all in into the job and we ordered appraisals, title work etc... The government wants to know why a housing bust? Look at how much the buyers and sellers lose in fees alone to useless "professionals" who fill out papers my son a junior in high school could and I got better more relevant comps than realtor. How do you use a comp for waterfront home on non waterfront property? They all stink and are the lowest form of life along with used car salesmen I have encountered. I negotiated a realtor to 3.25% on $500,000 home. Any lower they would not show it. Next time Mr Lister with 2.0 to 2.5 for selling realtor. What a racket. Like Mafioso.
Thanks for sharing your opinion with us in the forums!! :)