Real Estate Agents................................

[Chasey_Lane]

Originally Posted by somdrenter

For around $200-$300, you can even get your FSBO on the MLS.

You can get your FSBO on the MLS for free.

[dn0121]

Originally Posted by Chasey_Lane

You can get your FSBO on the MLS for free.

Really, hows that?

[Christy (Premo)]

Originally Posted by somdrenter

Sorry Vrai, but no. Buyer’s agents negotiate on behalf of their commissions. If you’re thinking about purchasing a home, you shouldn’t be an “inexperienced layman”. After all, it’s probably one of the largest purchases you’ll make, and it pays to educated yourself and not be lead around by someone that counts on you paying as much as possible for a home.

Again it goes back to who you choose as an agent. I've witnessed first hand many agents who have been instrumental in keeping a buyer from getting screwed. Any decent realtor is looking for repeat customers, not a one time deal, so it makes absolutely no business sense to screw your client.

A Real Estate agent provides a service. If you don't feel you need one, don't get one. I look at hiring an agent to help buy or sell a house along the same lines as any service, I'm sure I could change the oil in my car, or build my own fence, but quite frankly, I have no desire to do any of those things. I imagine that is how many people feel when it comes to buying and selling a home. If you don't have the time or the patience, get an agent, if you have the time to invest in doing it yourself, then by all means do it yourself.

I guess my point, is that I am having trouble understanding why you have such a negative opinion of a service that you aren't forced to use?

[somdrenter]

Originally Posted by Christy

A Real Estate agent provides a service. If you don't feel you need one, don't get one. I look at hiring an agent to help buy or sell a house along the same lines as any service, I'm sure I could change the oil in my car, or build my own fence, but quite frankly, I have no desire to do any of those things. I imagine that is how many people feel when it comes to buying and selling a home. If you don't have the time or the patience, get an agent, if you have the time to invest in doing it yourself, then by all means do it yourself.

I guess my point, is that I am having trouble understanding why you have such a negative opinion of a service that you aren't forced to use?

Not a negative opinion, just clear about the motivational factors when dealing with folks working for commission. The oil change/fence building analogy is a poor one, especially when talking about a buyer’s agent.

We now see the effect of people that “don't have the time or the patience” when buying a home. Record foreclosures, government bailouts, record rates of decline, strains on the economy, and the list goes on…..

[vraiblonde]

Originally Posted by somdrenter

We now see the effect of people that “don't have the time or the patience” when buying a home. Record foreclosures, government bailouts, record rates of decline, strains on the economy, and the list goes on…..

What does that have to do with the real estate agent?

You'd be better off directing your ire toward mortgage companies who offer sketchy loans, and the dingleberries who have no real idea how much they can afford for a monthly mortgage. RE agents, as far as I can tell, had nothing to do with the mortgage meltdown. They neither appraise the house, nor do they offer the financing options for it.

[Christy (Premo)]

Originally Posted by somdrenter

Not a negative opinion, just clear about the motivational factors when dealing with folks working for commission. The oil change/fence building analogy is a poor one, especially when talking about a buyer’s agent.

How is the analogy a poor one? You can build a fence for probably at least half of what it would cost to have one built for you. Their motivation is the same as a real estate agent, to be paid for their services. EVERYONE's motivational factor is to be paid for whatever service they provide, why should it be any different, or any more distasteful when it comes to a real estate agent?

[somdrenter]

Originally Posted by Christy

How is the analogy a poor one? You can build a fence for probably at least half of what it would cost to have one built for you. Their motivation is the same as a real estate agent, to be paid for their services.

The motivation is not the same. The (financial) incentive for a buyer’s agent is for the buyer to pay as much as possible for a home. The fence builders incentive is to bid lower than all the other fence builders and finish the job as fast as possible for the agreed upon price. The buyer’s agent’s payout (commission) is more on a $300K purchase than a $250K purchase. It does not behoove a buyer’s agent to negotiate the best deal on a home, just low enough so the buyer will cave.

[MMDad (Premo)]

Originally Posted by somdrenter

The motivation is not the same. The (financial) incentive for a buyer’s agent is for the buyer to pay as much as possible for a home. The fence builders incentive is to bid lower than all the other fence builders and finish the job as fast as possible for the agreed upon price. The buyer’s agent’s payout (commission) is more on a $300K purchase than a $250K purchase. It does not behoove a buyer’s agent to negotiate the best deal on a home, just low enough so the buyer will cave.

You don't know much about business, do you?

The fence builders incentive is to charge you every cent you are willing to pay while convincing you that you are getting the best value. He doesn't have to be low bidder, he just can't give a price that makes you go elsewhere.

In other words, his motivation is to get you to pay as much as possible for the fence. Just like every other business in a Capitalist society.

[somdrenter]

Originally Posted by MMDad

You don't know much about business, do you?

The fence builders incentive is to charge you every cent you are willing to pay while convincing you that you are getting the best value. He doesn't have to be low bidder, he just can't give a price that makes you go elsewhere.

In other words, his motivation is to get you to pay as much as possible for the fence. Just like every other business in a Capitalist society.

Seriously Dad. If you don’t understand the difference between a commissioned based and a salaried position, some words of advice for ya: Never step foot on a used car lot.

[somdrenter]

Originally Posted by vraiblonde

What does that have to do with the real estate agent?

You'd be better off directing your ire toward mortgage companies who offer sketchy loans, and the dingleberries who have no real idea how much they can afford for a monthly mortgage. RE agents, as far as I can tell, had nothing to do with the mortgage meltdown. They neither appraise the house, nor do they offer the financing options for it.

That was in response to the “If you don't have the time or the patience, get an agent” comment. I don’t think Christy was referring to real estate agents.

Otherwise I somewhat agree with you. There’s plenty of blame to go around, real estate agents deserve a portion of that blame.