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Serious question; From what I've read, a flat fee broker will list your home for a given price (no percentage of a sale price). You do the rest of the listing estate agent work.
I understand the value of getting a license on the buying side. When my parents moved to Florida, my Dad became a RE agent. It was his legitimate part time job (he worked through a broker). When I bought a newly constructed condo, Dad's participation saved me 3 percent.
What am I missing here? On the buy-side, having your RE license could save money when dealing with the listing agent (although if I dealt with a listing agent directly, I'd expect a discount without a license since I did the buying agent work myself).
These days on the sell side, it seems you can pay a flat fee to get in the MLS and show the property yourself.
Back in the days you had Home Discovery who offered the same option and on the height of the market they had 350 agents. Than they got broke and they don't exist any more.
We see time after time agents offering discounts and their service is the same... bad and discount is even over charging for their service as they don't give service.
In real estate in the US there are so many different type of deals and issues with homes that often you get what you pay for and having to deal with the issues afterwards.
Some people may be very good in handling things themselves and won't run into issues. But keep in mind that for many buyers it is their life savings or a big chunk of down payment on top of a 30 year mortgage for which they have to pay a lot of money and short sales will become history and owners will have to keep paying. It is an investment and not a gallon of milk that you can throw out if you bought the wrong brand. Most sellers and buyers don't have the experience that see of you may have.
It is of course the choice of the customer how to handle it and many have thought they can do it themselves and got stuck with buyers who walked away and emotions running up about escrow money or items that need to be fixed or liens or clouded titles. Some got stuck with HOA issues as violations were not disclosed or no title company being used and later buyers found out a HOA was in place and no estoppel letter obtained and HOA filing a lien.
We have seen it all and often scratched our heads how stupid people can be.
Keep in mind as a seller you may think your smart but you won't know if the buyer is outsmarting you unless it ends well.
You can go to a plastic surgeon or have a person perform similar work at home for way less money and see how often that is going well. The same count for all the people offering everything for a discount and not having respect for their work and you know why? Because they have no clue what they are doing and they think short term.
Just check out companies like the one who will sell or buy your home and check expired listings and how many they really buy or for what amount?
Last week I had someone telling me about a property that sold for a huge amount and it was repeated to me a few days later which triggered me to check it out on the MLS. In reality the property was only listed for that amount but sold for $ 800,000 less and never even sold for anything higher which the person who told me was convinced was true as the seller had told the person. Maybe the seller did say it or maybe the person misunderstood. But in reality many people tell stories which are often believed by many or will get to live their own live and over time the story changes so much that everyone will believe it who will not fact track.
The same count for discount realtors and flat fee listings. It is out there but perhaps 5% or less and over the last decade it hasn't taken off and most listings like that didn't sell that way.
If you believe everything you hear than every one can do everything themselves and none of us need any professional.
Maybe we won't need a doctor anymore because we can search the internet and no lawyer needed as we can research the internet how to defend ourselves. We don't need a car sales person nor a store employee, no bank teller, no server in a restaurant as we can use self service. Why do we have people still working if we can all do it ourselves!
In my opinion some can do it all themselves and they can ignore my post and I hope they will always be right.
But strangely some on this forum who are very much against almost all professionals are renters! We love renters so nothing personally and negative about them but just to the ones who claim to be so good as unlicensed professionals and better than the ones with a license.
I guess buying was not so successful for them
Last edited by bentlebee; 05-11-2016 at 07:36 PM..
Serious question; From what I've read, a flat fee broker will list your home for a given price (no percentage of a sale price). You do the rest of the listing estate agent work.
I understand the value of getting a license on the buying side. When my parents moved to Florida, my Dad became a RE agent. It was his legitimate part time job (he worked through a broker). When I bought a newly constructed condo, Dad's participation saved me 3 percent.
What am I missing here? On the buy-side, having your RE license could save money when dealing with the listing agent (although if I dealt with a listing agent directly, I'd expect a discount without a license since I did the buying agent work myself).
These days on the sell side, it seems you can pay a flat fee to get in the MLS and show the property yourself.
With new construction if you are coming without a realtor you cannot get 3% discount, but you can get upgrades equal to 3% for no charge It's a little tricky because you can come with your agent (who will be cash back agent or regular one), and still get things for free from the builder. Knowing how much builders are charging for upgrades 3% will not be an issue Best deals are on inventory/ ready to be complete soon homes when you can score even higher (depending how long builder had that specific house in their inventory, or how well they are selling).
And as a sellers we used flat fee realtors too, had no issues. I actually enjoyed it more compare to having actual realtor representing us since I didn't have a feeling we had too many people to communicate and coordinate with, so the miscommunication was at the minimum. I was pleasantly surprised to see more and more people elect not to have realtor "representing" them.
And going with listing agent as a buyers and expecting 3% - most contracts between sellers and listing agents specify listing agents are getting more than 3% if represent both parties. Again from our experience listing agents were actually helping us when we were in multiple offer situations and in most cases made out bids to win. Smart ones used their family members (also realtors) showing in the paperwork as our realtors for they were getting full 6% from sellers, but we never seen "our" realtors ever, just their name on papers
Let's keep in mind there is no way to compare the same deal with realtor vs without one simply because deal went one way and that way only and no one has crystal ball to tell how it would be if realtor was representing/wasn't involved It's also amusing to read about "good deals" simply because definition of good is different for everyone.
With new construction if you are coming without a realtor you cannot get 3% discount, but you can get upgrades equal to 3% for no charge It's a little tricky because you can come with your agent (who will be cash back agent or regular one), and still get things for free from the builder. Knowing how much builders are charging for upgrades 3% will not be an issue Best deals are on inventory/ ready to be complete soon homes when you can score even higher (depending how long builder had that specific house in their inventory, or how well they are selling).
And as a sellers we used flat fee realtors too, had no issues. I actually enjoyed it more compare to having actual realtor representing us since I didn't have a feeling we had too many people to communicate and coordinate with, so the miscommunication was at the minimum. I was pleasantly surprised to see more and more people elect not to have realtor "representing" them.
And going with listing agent as a buyers and expecting 3% - most contracts between sellers and listing agents specify listing agents are getting more than 3% if represent both parties. Again from our experience listing agents were actually helping us when we were in multiple offer situations and in most cases made out bids to win. Smart ones used their family members (also realtors) showing in the paperwork as our realtors for they were getting full 6% from sellers, but we never seen "our" realtors ever, just their name on papers
Let's keep in mind there is no way to compare the same deal with realtor vs without one simply because deal went one way and that way only and no one has crystal ball to tell how it would be if realtor was representing/wasn't involved It's also amusing to read about "good deals" simply because definition of good is different for everyone.
so why was this answer needed tell him to go find his answer in a book on real estate...yet you seem so eager to help with your 2 cents (which I wouldn't bother reading to be honest)
Why would I do that?
I just call realtors/brokers around and have plenty to chose from within an hour... 1.5% cash back is something very easy to find, and for 2% you need to talk to brokers mainly. Done this not once or twice, but number of times already... Smart realtors/brokers see easy money and gladly get into deal. That's all I personally care for.
really and what made you expert...and if you were why would you bother sharing just tell him to go to a bookstore?
Oh please, stop this non-sense.
1) we were talking about NEW CONSTRUCTION
2) easement so as right of way is not realtor's job to search or discuss, that's why you have legal description for God sake and licensed land surveyor...
3) Define good/ bad realtors and we will talk.
4) Stop pretending what is realtor's responsibility and what now. If some head flick told you something he shouldn't it doesn't make him bad realtor. He was just regular sales guy. The matter of fact realtors have no education or knowledge (in 99.9% times) to talk about pool permits, rezoning, easements, estimates of remodeling - these talks are all garbage.
So please, don't tell me what good realtors will tell you. Their job description is rather limited and required high school diploma at the most...
you seem angry...I recommend leaving this site for a little
I agree with English Girl; with new construction, 75% of what a buyer's agent normally does isn't applicable ( assuming you decided on new construction from the beginning). So, if you can get them to split the commission, it seems to be a win-win.
Great informative answer! I'd rep you again, but C-D wants me to "spread it around".
Quote:
Originally Posted by EngGirl
With new construction if you are coming without a realtor you cannot get 3% discount, but you can get upgrades equal to 3% for no charge It's a little tricky because you can come with your agent (who will be cash back agent or regular one), and still get things for free from the builder. Knowing how much builders are charging for upgrades 3% will not be an issue Best deals are on inventory/ ready to be complete soon homes when you can score even higher (depending how long builder had that specific house in their inventory, or how well they are selling).
And as a sellers we used flat fee realtors too, had no issues. I actually enjoyed it more compare to having actual realtor representing us since I didn't have a feeling we had too many people to communicate and coordinate with, so the miscommunication was at the minimum. I was pleasantly surprised to see more and more people elect not to have realtor "representing" them.
And going with listing agent as a buyers and expecting 3% - most contracts between sellers and listing agents specify listing agents are getting more than 3% if represent both parties. Again from our experience listing agents were actually helping us when we were in multiple offer situations and in most cases made out bids to win. Smart ones used their family members (also realtors) showing in the paperwork as our realtors for they were getting full 6% from sellers, but we never seen "our" realtors ever, just their name on papers
Let's keep in mind there is no way to compare the same deal with realtor vs without one simply because deal went one way and that way only and no one has crystal ball to tell how it would be if realtor was representing/wasn't involved It's also amusing to read about "good deals" simply because definition of good is different for everyone.
With new construction if you are coming without a realtor you cannot get 3% discount, but you can get upgrades equal to 3% for no charge It's a little tricky because you can come with your agent (who will be cash back agent or regular one), and still get things for free from the builder. Knowing how much builders are charging for upgrades 3% will not be an issue Best deals are on inventory/ ready to be complete soon homes when you can score even higher (depending how long builder had that specific house in their inventory, or how well they are selling).
And as a sellers we used flat fee realtors too, had no issues. I actually enjoyed it more compare to having actual realtor representing us since I didn't have a feeling we had too many people to communicate and coordinate with, so the miscommunication was at the minimum. I was pleasantly surprised to see more and more people elect not to have realtor "representing" them.
And going with listing agent as a buyers and expecting 3% - most contracts between sellers and listing agents specify listing agents are getting more than 3% if represent both parties. Again from our experience listing agents were actually helping us when we were in multiple offer situations and in most cases made out bids to win. Smart ones used their family members (also realtors) showing in the paperwork as our realtors for they were getting full 6% from sellers, but we never seen "our" realtors ever, just their name on papers
Let's keep in mind there is no way to compare the same deal with realtor vs without one simply because deal went one way and that way only and no one has crystal ball to tell how it would be if realtor was representing/wasn't involved It's also amusing to read about "good deals" simply because definition of good is different for everyone.
I don't know where your so called experience comes from or is living in a rental home per your own posts now all of sudden making you a savvy investor. On top of what you describe is illegal handling and very false information.
Buyers with a realtor will get the same amount of upgrades or no upgrades and usually only the worst lots will make a builder give away upgrades.
Just walking through a model home doesn't make you an expert.
Hopefully people reading posts on this forum will read older posts so they can read your a renter and not a buyer of multiple homes where you got such a nice deals...typing on a computer and reading some websites doesn't make you an expert.
It is actually kind of dangerous if people who have no clue will believe that this is reality but they will find out when they get into a contract with a builder that things will be different and not like back in the days when you maybe had one agent or so called unethical family member who did what you described. If that worked so well than share the name to proof your case.
You must be very wealthy with all the money you saved on your deals over the last years.....but sorry that you are still renting and not living in that nice new built home you try to describe to posters.
On top of what you describe is illegal handling and very false information.
Not again please, I though we sorted it out couple of years back when you were asked to site where sharing commissions being illegal is coming from which you are failed. As long as all involved parties (builder/seller/realtors/lenders) aware it's completely legal. God, I miss chi-tino so much now!!!
Redfin actually lists agents who are willing to split their commissions. Try to tell them they are doing something illegal
Not again please, I though we sorted it out couple of years back when you were asked to site where sharing commissions being illegal is coming from which you are failed. As long as all involved parties (builder/seller/realtors/lenders) aware it's completely legal. God, I miss chi-tino so much now!!!
Redfin actually lists agents who are willing to split their commissions. Try to tell them they are doing something illegal
Your post are not about redfin or any other website but about your experience and how you were able to get all this and a family member who is licensed gave you money back and you got all the uogrades.
Your other posts are about your renting so please explain about all the times you bought homes and we're so smart and for years your post are about you are so smart that your renting.
I guess you live in both worlds....reality as a renter and fantasy world of having all the knowledge and being a teacher to others about how it all works.
We have millions more of sports coaches sitting in front of the TV and knowing it better than the ones who are the real coaches.
The reason you probably never got your license is that at that you can be held liable but now you can flap your gums or type away and make your own world like it is reality without kowing all the facts and naive readers thinking you are the one who really has the experience and b so great sharing it while sitting in your rental property and never really experiences these things other than reading some other people's post and making up some more so called facts and writing like you are so savvy.
Redfin is a website and without the experience of using it you only see what they offer but not having experienced what it is in reality.
In real life many companies and websites offered a lot to be shut down not long after as people were not satisfied or it just wasn't what was offered.
The company offering to buy your house in reality doesn't buy all of them unless they can get it for such a low price that every buyer will buy it for but it is nice advertising like that.
Just check out the expired and withdrawn listings and how many were bought by the brokerage.
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We love renters so nothing personally and negative about them but just to the ones who claim to be so good as unlicensed professionals and better than the ones with a license.
Best deals are on inventory/ ready to be complete soon homes when you can score even higher (depending how long builder had that specific house in their inventory, or how well they are selling). 
