Those stupid transaction fees that Realtors and brokers like to stick on transactions like some kind of tax to a buyer or seller have long been in my opinion a crock and finally someone had the chutzpah to challenge the gig fee and guess what…the Court agreed. Transaction Fees are indeed BULLSHIT!
Now I know I am going to get some flak over this. I have read the whiny posts on Active Rain wherein they say it’s needed because of the gas and time involved in showing a house or taking buyers all around town. I’m sorry, I thought that was why you were being paid a friggin commission! Shame on me for thinking that someone in business has to be able to absorb their expenses based upon their revenue.
But nooooo…agents who charge this tariff say it’s needed because after splitting with their broker and taxes and expenses they don’t have anything really left over.
Earth to sorry ass real estate agent. Find another line of work! If you can’t make ends meet without making a buyer or seller paying you some extra vig…then you need to get in line, don the blue vest and sell me a happy meal.
It seems that every time you turn around there is another brick being laid on the wall. You know that increasingly large wall that divides the agents who will continue to be successful and the others left on the dark side wondering what happened to their creampuff do nothing for money fanatasy world.
The majority of agents out there had better wake up. Even though I am quite sure that the 10 percenters out there who are actually successful hope that you don’t.
Damn…. That was harsh
Excellent post Barry C.!
The only flak you should be receiving, is from the agents that still think you can show 3 houses on a Sunday and have a signed and sealed contract by Wednesday and a closing by the 30th every month — or maybe they live just got out of their coma, or perhaps they live in Tibet.
I find it amazing, whether it be Active Rain or Trulia “Voices” that posting agents keep pushing fee’s or 6% commissions .. get what you can upfront and fight for the rest later. We work in a commission driven business, some is better than none – and “none” means you’re unemployed — and you’re worried about gas and time.?
It’s like most agents don’t think that in today’s world that consumers read their posts or shop agents, or their companies or ever object to a flawed system that has (and is) changing everyday, buyers don’t have to get loud or mad anymore, they just go to another Broker … “Hello agents.!”, look at the auto industry, dealerships dropping like fly’s, it’s nothing more or less than the mirrored image or the echo of the Real Estate business — except, we’re only a few months behind.
Personally I don’t mind the “sorry ass real estate agents” .. actually, I’m overjoyed they are here and they’re the vast majority …. while they cry and whine about splitting commissions and embarrass themselves with hinky fee’s and silly tariff’s that the buyer or seller already knows “not” to pay, in a crashing market those agents have *increased MY business* by 20% this year – thank you very much.!
I don’t have an issue negotiating a flat fee for listing or selling a home, I don’t have an issue with getting paid a flat fee of $10,000 for selling $400,000 condo, etc etc … in the meantime, the lazy agents can charge all the fee’s they want — see you at the closing table.!
CRay I think you will always be in that 10% that actually is successful because you SERVE your client’s interests first.
I read something from the NAR yesterday that profiled agents. In this day and age with the impact of the economy and technology it was amazing to see how far behind the industry is.
Maybe it’s because if you can fog a mirror you can get a license..who knows but it caught my ire when I read the opinion from the NAR on this issue. They spoke of telling agents to watch out but said nothing about the client’s interest.
Like you said…don’t they realize that the general public sees this stuff?
“Maybe it’s because if you can fog a mirror you can get a license..”
Sad, but very true …
How many part time agents are there in Florida (or California, NY, or the Carolinas, etc.?) .. 60, 70, 80% of the market.?? .. just because you’re in the business doesn’t mean you “know” anything about the business. We have some friends in the Ft Myers area (example only) that have been *in* the business for 11 years, and have never sold a home, not one…
Every year they would wait for their friends to come down from New Jersey and they would list their condo or house, they would usually list 12/15 properties a year … come May, the listings fall and everyone goes back home, but they get their 2 or 3 sales a year.
In today’s market, they have no idea what to due … they run and hide from their previous clients because they sold them a $600,000 property 3 years ago that won’t see much more than $450,000 a good and glorious day … and if they’re still on speaking terms, they insist that every agent still gets 6% commission and they want $5,000 in start-up fee’s because they are a full service broker — ahh, who isn’t nowadays ..l.o.l.. it’s ridicules …
In the meantime, the seller finds another top notch agent and they come to an agreement to do a flat fee or agreement on a much reduced commission … or, the agent can sit in their office (like my buddy in Chicago) and answer phones and watch the NBA play-offs while the broker down the street is closing on 5 more houses a month …. truly amazing.
Again, I hate using this analogy “but” … it’s like going to a car dealer and having them tell you they won’t negotiate off of sticker price, when the dealer 3 miles away has $2,000 in rebates, plus will come off the price $1,000 — like my great grand Daddy used to say: “You can be a lion and you can be a tiger, but never be a pig..”
– we know what happens to pigs..
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Anything a realtor does is bullshit. They learn a little contract law. Open your blinds to tell you to let in the sun. Tell you to clean your toilet and paint your kitchen. For this they get 3% of your house price or more. Now the only thing they have going for them is an exclusive database to list your house. That no seller or buyer can access. Sure they have the bullshit MLS on the web. Thats not the one they use however. I hate realtors.
I am buying a REO house that costs 23,000 with cash and the broker that I am working with charges me $3000 for commission +899 transaction fees+1500 for closing cost. That’s almost 6K in fees for a 20k house. All this was explained briefly and I was not aware because he said the 3k would be paid by the seller at the table. But No. I came home read the paper carefully and called them, and they told me that I will be responsible for all that charges. They showed me the house 1 time for 5 minutes. So rediculous, and they insisted me that that is the lowest price they can possibly charge. I believed them, and signed the contract. We haven’t closed yet, but gosh, I signed the contract. My fault and Lesson learned.
SillyMe…thanks for stopping by and thanks for the comment.
Did you at least get kissed first? OMG…if it’s a great deal then chalk it up to experience. If not, then I’d walk. In either case I would make sure everyone I know stays clear of that agent!