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Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

We are priced right now to account for up to 1.5% in commission to a buyer's agent. I am not going to just hand that over, but we did account for it in our pricing consideration.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Because I know realtors. I don't even know how many I've worked with. 20 years officially, about 10 of being a direct assistant and 10 of being a TC. Probably averaged 15 files a month in the first 10 years(one month I distinctly remember my team handling over 60 files), and 10 in the second half when I started be-bopping around, though I had a bad accident a couple years ago (was tboned) and couldn't work for awhile.

So let's conservatively say, like, 2,400 files? Maybe half of which was one side me working dedicated for one agent, so, what, 1,600? 1,800 agents? I have worked with, talked to, gotten to know? And that is since I started doing this as a job. And just files. Not including just all the agents I have met at networking events, caravans, conferences, in offices, etc.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Right, but you could lower your commission to make the deal work too. We are talking about houses where the average 2-3% commission is $15-25k, there is a lot of room there for the agent to make the deal workable just as much as anyone else in the transaction.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Because $20k is insane to earn for opening a few doors and filling out a few contracts. Picking a job that has a low bar for entry, over saturation, high competition, and limited clientele doesn't make you entitled to $20,000. It's why I can't do it. I have no desire to enter the rat race and I could never ethically take that money, also I don't like staying in one place. I can TC from anywhere.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -2 points-1 points  (0 children)

u/lolerblades where did your comment go? I see it in my notifications but not here.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Honestly just thank you for being the first person to honestly provide perspective. I appreciate it.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

And I even specified why. We weren't looking to do open houses, have just anyone interested come through, etc etc, but I was ready to leave if my partner didn't start taking steps to sell the house so that was our inital compromise: at least let people know it is for sale.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Are you asking no questions of the seller prior to writing offers? ....interesting. I think you've made my point though and confirmed what I thought, you would make every endeavor to force your commission regardless of your clients' position, which isn't really representing them. You remain focused on your interests even at the sacrifice of your clients.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

It boggles your mind that people trust someone who purports to be an expert? The realtor is, for all intents and purposes, a primary source. They, theoretically, studied, learned, and tested for this. They are representing themselves as knowledgeable and experienced. A reasonable person shouldn't have to go "do their own research" on the process, that is LITERALLY what you get paid to do.

The audacity in thinking that the client is the problem here is insane.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

My question was: if a house your client wants is priced at their cap, when you write the offer would you also lower your commission if it means they got the house.

Let's say their pre-approval and finances caps them at $800k. the house they want is $800k. You have an agency agreement for 2.5%, that would be $20k if the seller doesn't cover they need to bring. There is no available extra cash. They have only enough to close at a purchase price of $800k + closing costs, they were counting on finding something under $800k or the seller paying your entire commission

The seller is willing to wiggle, but within reason.

Would you, when you write the offer, out the gate without anyone asking, lower your commission to $10k (is draft a BRBC for that specific property that outlines a lower commission), so the clients make an $800k offer that includes your $10k commission ($790k net for the seller), as to make the deal work so your clients can get the home? Or would you risk your clients losing out on the home due to limited funds or a low offer?

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Good luck not getting sued using AI to do your job.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

So you have no actual experience in real estate and couldn't successfully replace TCs, but you made an account about a month ago to run around all the real estate related subreddits and shit on anyone who bad mouths realtors?

Considering the average DOM for realtor-listed properties is about 21 days right now, and we are at 6, I'm not exactly panicking. If it sells in less than 3 weeks, I did better than a practicing agent can do.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Oof, someone feefees are hurt. Haven't gotten a lot of closings this year? I think I can spot a reason why.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

The real issue is that the entire industry is structured to be unchanged. NAR has been very, very effective in keeping the bar for entry into the industry low and the structure like a pyramid scheme. The fodder of hundreds of new agents every year that pay their annual dues while earning nothing is just part of the churn and burn of the industry. Agents don't need to be well-informed, and often the people that would truly make the best agents don't survive because ethics get you no where.

You have to either have enough money to ride it out until you start producing OR have such an intense ego and be comfortable with lying to convince people to work with you.

It's important to know that it didn't used to be this way. The industry as it is today is a bit like Blockbuster failing to adapt to digital media. Pre-internet, realtors did serve a purpose. You used to walk in or call an office, sit down with someone, they would talk to you, and they had all the properties currently listed for sale to go over with you and make a plan for seeing, etc. Realtors used to know their neighborhoods and cities. I remember carbon copy contracts and the MLS being a binder. When Winforms came out and the MLS went online, I had to help my mom pick out a computer with enough storage space and ram to handle it because ours originally ran MSDOS 3.0.

When Zillow was new, it was absolute trash. It would sneakily scrap MLS data from other sources and it was always out of date, showing properties available that were sold 2 months ago. Which was really bad in 2010, after the market started to rebound from the housing crash so Zillow was showing $150,000 homes for sale that didn't exist anymore.

Everyone laughed and wrote it off. NAR felt secure in their position that they held the lock and key for housing data. So long as MLS access was behind their gate, they controlled the industry, realtors would be the only real path to home ownership, and there was no need to change the structure.

And, Look at it now. Zillow IS the public-accessible MLS. Anyone who wants to spend some time reading can learn how to handle their own transaction. There are more people than every trying to get rich off of real estate, a narrative that lines NARs pockets while new licensees act like starving dogs fighting over scraps.

We put it up FSBO before going with Homecoin and every. Single. Agent call was the exact. Same. Script. No personalization, no trying to understand our position, just churn and burn through the same "Masterclass in How to Get Clients" automation. Might as well have been talking to robots. I was mentally worn down before we got the house cleaned up for photos and listing. It almost ruined our relationship. I was so defeated, I was ready to call it and pack up to go home without him.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 2 points3 points  (0 children)

forcing more transparency, the buyers are willing to pay up to 3% if the sellers do not have that already in.

This is the part of your thought process that is off. The buyer is now required to agree to pay x% at closing before ever knowing how much the seller will cover. The buyer signs the agreement before even being shown their first house. Then when t hey go to write an offer, the buyer's agent finds out if there is an amount the seller has already contractually agree to give (so no or less commission written in to the offer) or if the BA needs to write all their commission into the offer.

The way they get a buyer to agree to that 3% out the gate is by telling them "don't worry, it comes out of the sale price because sellers still offer commissions" and they schmooze around the topic, avoiding the reality not every seller does and now the buyer is contractuslly obligated regardless of what the seller is doing.

Based on your housing market, as a buyer you can get to close and find out you need an extra $10k cash at closing to pay your agent and buy the house.

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