We have threads monthly on here that end up boiling down to a handful of people saying that the format for paying commission rates to Realtors is dated and that change is coming. Some have said Realtors just flat aren't worth the money, and some have pointed to flat fee as a potential solution. We now have technology that attempts to replace the Realtor as well.
This is not a thread to start an argument. If you want to argue for or against Realtors please take it to one of the previous threads.
I want to give those of you out there who have claimed that change is coming, and those of you who are in the industry that (like me) have seen first hand how many bad apples there are that give the rest a bad name a place to share your ideas.
So let's discuss what we might see in the future, the viability of it, the opportunities, and the potential downfalls. Let's think it through as it regards to TREC, NAR, TAR, and the lobbyists on the side of the industry who will fight tooth and nail to keep things status quo.
My background:
My stances:
Let's hear some thoughts!
This is not a thread to start an argument. If you want to argue for or against Realtors please take it to one of the previous threads.
I want to give those of you out there who have claimed that change is coming, and those of you who are in the industry that (like me) have seen first hand how many bad apples there are that give the rest a bad name a place to share your ideas.
So let's discuss what we might see in the future, the viability of it, the opportunities, and the potential downfalls. Let's think it through as it regards to TREC, NAR, TAR, and the lobbyists on the side of the industry who will fight tooth and nail to keep things status quo.
My background:
- I worked for an apartment complex as a leasing agent in college.
- After college I started as a licensed leasing agent in College Station.
- I was a full time Realtor in College Station with Houston as my secondary market.
- I've done residential and commercial appraisal of all property types save for high rise office.
- I spent two years in acquisition and development for a large grocery retailer.
- I'm now doing multifamily acquisitions and underwriting and I'm a Realtor on the side for close friends and family.
My stances:
- I believe a good Realtor is invaluable to the average buyer.
- I believe an educated and/or experienced seller absolutely does not NEED to use a Realtor.
- I have no idea why any buyer wouldn't hire a good Realtor. A good Realtor can net you the same amount that you think you will receive in price deductions from not using a Realtor, and you will have someone looking out for your interests and not the seller's.
- I think standard commission rates (seller pays 6% split evenly between the buyers agent and sellers agent) are fair at most transaction levels.
- I believe that a commission of 2%-2.5% for each side is fair for higher valued homes.
- I don't think we will ever see transactions again where each side pays their own Realtor. Free market and capitalism is why sellers starting paying both in the first place as a way to entice buyers agents to favor showing their listing over other listings.
- I realize the benefits of flat fee Realtors to all parties but would like to make sure people understand that as a buyer, your agent is still getting 3% unless you've made an agreement for them to kick back a portion to you.
- I believe good flat fee Realtors who offer full service are great free market reaction to experienced sellers who don't see the value in standard Realtors.
- I absolutely loathe Zillow and any website that uses anything other than verified sales to estimate value.
- I think the new trend of apps and websites that let you in houses is interesting, but I see way too many potential abuses and needs for future regulation in the industry for me to get behind it.
- It annoys me when people fail to understand that a seller has a contract with their Realtor for a specified time period that discusses how commissions will be paid out, and that 99% of the time in a situation of a buyer coming without a Realtor, the listing agent get's the whole 6%.
- I'm excited about the future of technology in the industry, but I don't think it will ever cater to more than maybe 30% of people as far as industry change goes. The rest simply don't understand real estate and need good representation that a lawyer, loan officer, or title company cannot provide.
Let's hear some thoughts!