Quote:
Originally Posted by Porsche-O-Phile
I still don't understand how anything an agent does is even remotely worth a 6% commission.
Unless she's hot and it includes free BJs.
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I charge extra for my "full service" package
Quote:
Originally Posted by Christien
I agree. 6% on a 300k home is $18k! Even split between a listing and selling agent, 9k each is awesome commission for the work.
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3% on each side = 9000
let's assume a standard 60/40 brokeareg split = 5400
minus:
-taxes
-advertising
-real estate board fees
-errors & ommissions insurance
-car expenses
-cell phone
Want to guess what he took home?
Quote:
Originally Posted by Por_sha911
I have friends that are realators. The buying and selling agents split the 6%. Then, the agent splits their portion with the agency (sometimes 60/40 instead of 50/50). That means that they get 1.5% for:
-driving around jerks who waste their time and gas and never buy
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Not *always* jerks, but sometimes people just change their mind and decide to wait another year, after MONTHS of looking on evenings and weekends.
Quote:
Originally Posted by Por_sha911
-take call all hours of the day and night
-work weekends & holidays
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yep!
Quote:
Originally Posted by Por_sha911
-sellers that are out of their mind as far as what the house is worth
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One of the hardest things to deal with. After a while, you realize when you are far better off to just not take the listing
Quote:
Originally Posted by Por_sha911
-and worst of all: deal with heartbreak when the whole deal falls through over two people that won't budge over $1k, bad credit to income ratio, a home inspection turning up nightmare problems, or buyers just getting cold feet and bail on the deal (the agent gets none of the security deposit).
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Just had one *almost* fall apart over $1800. Had SO much time invested, the other agent & I decided to swallow the $1800 ourselves just to get the deal done.
Quote:
Originally Posted by Por_sha911
-Selling is not an easy job. Listing is an easy sale if you can get one that is sell-able.
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It's great to have sellable listings, that's the key. Otherwise, it gets real expensive, real fast.
I think it'd be a mind-bender for most of you to see the monthly operating costs incurred by EFFECTIVE realtors. It's pretty nutty. You need to move A LOT of houses to stay ahead.
my in-office expenses run ~1200/mth
my car/cell miscellaneous expenses run 800/mth
I'm on a VERY aggressive split with my brokerage, which means my monthly fees are quite high, but I need to move MINIMUM 2 homes/mth if I want to stay afloat. A couple dry months and my expense bill starts to get pretty $%#$^ scary. But if I have a couple strong months with several closings, my expenses get licked and I can do pretty good.
It's a gamble though, which is why most people opt for 70/30, 60/40 or even 50/50 splits where more of there expenses are absorbed and they don't pay a flat desk fee. That way you can coast for a while and not get sucker punched by expenses