Monday, March 25, 2024

Pondering the Future of Commissioned Real Estate Agents

This is an issue and story I've been following and wondering about the fallout.

Steve makes some excellent points and I thought I'd share my anecdotal information. Recently I both sold my place and bought a home with my girlfriend so I have some first hand knowledge. We used the same real estate agent for both transactions and I was pleased with both.

As far as selling my place: my agent, who is also a friend, had me ask for $30,000 more than I planned on but he knows the market. He had to do all the advertising and was there the day of the Open House to answer questions from all comers. I was on vacation and it sold for the asking price the same day! As far as I'm concerned the extra money more then paid for his services. Sure it was a good payday for him but remember all those people who went to the open house all also had agents. Also remember my agent was chosen after years of being an honest, good guy to his friends who weren't in the market.

Buying a place we had three basic requirements: it had to greatly reduce my girlfriend's commute, a fenced in yard for our dog, and a smaller home (just me and her) - no need for more than 2-3 bedrooms or 1-2 bathrooms. We saw multiple houses and made multiple offers and was outbid on each by someone offering well over the asking price each time. We didn't pay a dime for those unsuccessful bids. The home we bought we offered the asking price and made the offer right away. We had everything lined up thanks to our friend.

We would hire him again in a heartbeat  and heartily recommend him. When the verdict was announced I never checked if this may have meant money coming back to me. We signed paperwork and went into this with our eyes open and would do it again.

My question is does that signed paperwork that specifies the commission rate supersede anything else? What to keep the better agents to ask for more then the industry standard 5-6%?

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