Real estate agent's commission (Orlando: days on market, short sales, foreclosure)

[annerk]

Originally Posted by volk2k

Really? In my neighborhood of $400k+ homes they are off the market in less than two weeks if they are priced realistically.

But that still does not answer the question.... What exactly is the agent doing differently on a 200k home vs 400k home... That justifies 100% more commission?

I get the multi-million dollar market and the lengths you need to go to there... But we are talking average priced homes in Orlando.

Typically you need to use a better photographer. Our neighbors just listed and the photographer came twice to photograph the home both in daylight and at night to show off the architectural lighting and sunset views.

You also need to market differently, buying color ads in more expensive outlets such as Orlando Magazine as opposed to a B&W with a grainy photo in the Pennysaver or just on the MLS.

[annerk]

Originally Posted by idr591

Find me a well priced Chain of Lakes home in Winter Park that has been on the market for a year and I will buy it and pay you 6%.

I'm a physician. People DO ask us to take pay cuts. Nearly every year. Are you aware of insurance companies or Medicare ever RAISING their reimbursements? The reality is, marketing and selling a home is easier now than it was 10 years ago. Times have changed.

Then 10 years ago? Not even close. Seven years ago I'd give you. But 10 years ago the market was on fire and people could get a million dollar loan with a signature, no downpayment, and a paycheck showing they made $9 an hour at Publix.

[annerk]

Originally Posted by volk2k

Million dollar mansions are one thing... They still don't warrant a straight 6%...

I am still not hearing why the agent of 400k home deserves 100% more than a 200k home.

Paycut? This is sales. There is no salary to cut.

The market is flooded with agents who can enter the market without a college education or simply on a whim.

They are not all entitled to $50k a year.

If they are a good enough sales person they are entitled to as much as they can make.

If you don't want to pay a commission, either FSBO or tell your listing agent what you are willing to pay total and let them take it up with potential buyers agents. Your choice.

[BMR1974]

Originally Posted by idr591

Find me a well priced Chain of Lakes home in Winter Park that has been on the market for a year and I will buy it and pay you 6%.

I'm a physician. People DO ask us to take pay cuts. Nearly every year. Are you aware of insurance companies or Medicare ever RAISING their reimbursements? The reality is, marketing and selling a home is easier now than it was 10 years ago. Times have changed.

I've got 7 houses on the Winter Park chain of lakes that are all priced within the market price per sq/ft and have been on the market over a year. They range from $799,000 to $6.7 million. Which one would you like me to write up for you? Message me your email address so we can get started! Thanks for making my day!

Most brokers selling houses in the million dollar range are not getting 3% to sell the house. It's typically less at that price range. Bear in mind the marketing costs alone for a multi million dollar house can be $100,000 or more.

No one is entitled to make any money but good real estate professionals earn every penny and make sure that transactions stay together.

There is no straight 6%. That's just a number someone threw out. Commissions range from flat fees to a percentage of the sale.

For those that think that using a real estate professional is a waste of money, what should it cost to sell your house? And what would be your plan for doing so?

[idr591]

Originally Posted by BMR1974

I've got 7 houses on the Winter Park chain of lakes that are all priced within the market price per sq/ft and have been on the market over a year. They range from $799,000 to $6.7 million. Which one would you like me to write up for you? Message me your email address so we can get started! Thanks for making my day!

Wow. You can use Zillow. I'm working with a realtor and your assessment is incorrect.

[idr591]

Originally Posted by BMR1974

Most brokers selling houses in the million dollar range are not getting 3% to sell the house. It's typically less at that price range. Bear in mind the marketing costs alone for a multi million dollar house can be $100,000 or more.

Not true. I've purchased two homes in this price range and it was 3/3% split between the seller and buyers agent in both cases. I think you're just making stuff up.

[idr591]

Originally Posted by BMR1974

For those that think that using a real estate professional is a waste of money, what should it cost to sell your house? And what would be your plan for doing so?

That can be debated. The argument here is just that it should not be a straight percentage. It is not 100% harder to sell a $400,000 house than a $200,000 house.

[BMR1974]

You don't have to be insulting to debate or prove a point. I can show you on the MLS the houses in Winter Park that you say don't exist. I can also show you on the MLS commissions that range from $250 to a percentage of the purchase price, set by and depending on the broker. Again it is not always a straight percentage. It just happens to have been that way in your case. I am charging 3 different amounts for 3 different transactions currently.

There is no doubt that all transactions are different. Some $100,000 houses are 10 x harder to sell than a $400,000 house and vice versa. Is it always 100% harder, no. Is it sometimes, yes. You don't get 100 easy transactions every year and you don't get 100 hard transactions.

As you are a doctor, are all of your patients the same? Do you charge them a flat fee or do you base it on what services you provide?

[annerk]

Originally Posted by BMR1974

I've got 7 houses on the Winter Park chain of lakes that are all priced within the market price per sq/ft and have been on the market over a year. They range from $799,000 to $6.7 million. Which one would you like me to write up for you? Message me your email address so we can get started! Thanks for making my day!

Most brokers selling houses in the million dollar range are not getting 3% to sell the house. It's typically less at that price range. Bear in mind the marketing costs alone for a multi million dollar house can be $100,000 or more.

No one is entitled to make any money but good real estate professionals earn every penny and make sure that transactions stay together.

There is no straight 6%. That's just a number someone threw out. Commissions range from flat fees to a percentage of the sale.

For those that think that using a real estate professional is a waste of money, what should it cost to sell your house? And what would be your plan for doing so?

Great post.

I sold my house in NJ at the top of the market FSBO. Easy peasy. But I had several things going for me.

1. It was the peak of the market, June 2005.

2. We put $5K into it before we sold it and it looked (and smelled) brand new with new carpet, vinyl, blinds, and paint--including the closet ceilings--literally every square inch was repainted. In addition to the $$ we put about 200 hours of sweat equity in. We repainted the outdoor lighting fixtures, put in new mulch and shrubs, you name it--the house had incredible curb appeal. To have paid someone to do the work we did would have cost $20K or more.

3. It was a "starter home" in a middle class neighborhood on a good lot. It was a 3/2.5 a block from a playground and a block from the express bus to NYC.

4. I put "Open House" signs with balloons out on the two major roadways that my home sat between on a weekend. I also advertised in the two local papers, although the open house signs were what brought the traffic, we got only one person out of the paper.

Did I mention it was the peak of the market and the house was on the NYC Express bus line?

I checked sale prices of same model houses in the neighborhood over the previous three months to get my asking price.

Sold the house for $20K over my asking price after one open house in a three-way bid war. I probably could have gotten a little more but I didn't want to get greedy and risk losing a deal over it. My price was $18K over the highest same model sale in the previous three months. My original asking price was the same as a same model home that I knew had additional upgrades.

All that aside, I now live in a custom home in a guarded, gated community. I'm going to hire a Realtor to sell it when the time comes. The homes that are marketed aggressively by a competent agent sell quickly. The rest just sit.

[volk2k]

Originally Posted by BMR1974

There is no straight 6%. That's just a number someone threw out. Commissions range from flat fees to a percentage of the sale.

For those that think that using a real estate professional is a waste of money, what should it cost to sell your house? And what would be your plan for doing so?

I have never said that using a real estate professional is a waste of money.

I think there is a ton of value working with a professional who knows the ins and outs of transaction.

I just believe the old model of 6% is ridiculous. Let's not be naïve... 6% is the "industry standard" And you even have Realtors in this thread talk about "Taking a pay cut"

Do some firms offer flat fee, of course. Do some accept lower commission splits or even market themselves as lower them up front... of course...

Even so, the point is that in the Orlando sub-$500K range MOST sales associates are not doing anything differently whether it be a $200K home or a $400K home... and even if they hire a slightly better photographer... or waste a few marketing dollars here and there...

I do not believe the same effort warrants 100% more commission just because the house happens to be more expensive.

My personal belief is that everything should be a la carte or "bundled" regardless of the price of the home:
Want to be in the MLS? $500
Want to be in some random newspaper? $500
Want me to be there for inspections and to do open houses? $1000
Want me to negotiate on your behalf? $3000
Yadda yadda: $10,000
(I am just making up numbers here)

Why again am I paying more for these services just because my house is valued higher?

P.S. - I know that there are firms that already do this and I applaud them... but they are not the norm.