Comments on: Chipping Away At Realtors' Six Percent

Lesley Stahl Reports How Realtors' Commission Fees Are Under Assault

[homeownerjoe]

Hey Realtors, if you have so much "integrity" why do you all criticize and put down discount or online brokers? Are you doing it to protect the public or your 6%? The NAR has a monopoly on Real Estate Services. (Monopoly = Exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.) 60 minutes has exposed this to the public. That is all going to change soon and you REALTORS are afraid that the easy money will be gone. There are plenty of books out there about how to make money on Real Estate. I am going to write a book on how to make money on "REALTORS"

[stopitnow2]

Maybe 60 Minutes should stop talking about REALTORS "sacrosanct 6%" and price fixing and look at the gas industry. Quite the coincidence that all the stations raise their prices on the same day to the same amount. Leave the hard working REALTOR alone.

[edward283]

Your right the individual "broker" firm sets their rate. The agents (indpendent contractors, in other words self employed indviduals) who work for that firm have to set terms according to that individual firms rate schedule.

Their are typically at least four different
business being paid from a single commission
transaction. The commission is shared by Two Firms and Two Agents in most cases the buyer side and the selling side.

What 60 minutes should do was educate people
about the expenses associated with running
such a business and then list out a comparision
between what an actual agency does vs. the virtual agency. It is so simple to see the
gaps when you have to actually start comparing
what is paid out. The virtual agent has very
little overhead because they do very little.

[edward283]

Hello! What a load of ***. Realtors do not push anyone to take out risky mortgages, to the contrary, that is one of the very things we
counsel people not to do. I on a regular basis help people navigate the mortgage maze and try to keep them from getting into a situation that
could create a very bad finacial position.

I can't speak for the entire market but I nor
the agents I work with have any incentive to
get a client into a bad mortgage. We don't
profit in anyway from a particular loan.

I think you are mistaken in that a lot of
people choose to take out loans to purchase
things they can't afford and because we show
and sell it to them you think its our fault.
We give professional advice, some of us give
better advice than others, but it's still just
advice.

To me it comes down to why type of person you
are. If you would choose to represent yourself
in court or at an IRS audit, your not likely to
feel you need a real estate agent either.

[swkyrealtor]

Why has no one brought up the fact that the "Agent" is NOT responsible for setting commissions? The "Brokers" are responsible for setting commissions! The agents are ONLY responsible for doing ALL of the work and for paying for ALL of the expenses. Then we only earn(gross)usually as little as 25% of that commission!
We "Agents" work for the "Broker".....
The Brokers get their split of every sale that we agents make.
If you "really" want to point a finger...the least you can do is point it in the right direction!!!!!

[swkyrealtor]

Why has no one brought up the fact that the "Agent" is NOT responsible for setting commissions? The "Brokers" are responsible for setting commissions! The agents are ONLY responsible for doing ALL of the work and for paying for ALL of the expenses. Then we only earn(gross)usually as little as 25% of that commission!
We "Agents" work for the "Broker".....
The Brokers get their split of every sale that we agents make.
If you "really" want to point a finger...the least you can do is point it in the right direction!!!!!

[swkyrealtor]

Why has no one brought up the fact that the "Agent" is NOT responsible for setting commissions? The "Brokers" are responsible for setting commissions! The agents are ONLY responsible for doing ALL of the work and for paying for ALL of the expenses. Then we only earn(gross)usually as little as 25% of that commission!
We "Agents" work for the "Broker".....
The Brokers get their split of every sale that we agents make.
If you "really" want to point a finger...the least you can do is point it in the right direction!!!!!

[swkyrealtor]

Why has no one brought up the fact that the "Agent" is NOT responsible for setting commissions? The "Brokers" are responsible for setting commissions! The agents are ONLY responsible for doing ALL of the work and for paying for ALL of the expenses. Then we only earn(gross)usually as little as 25% of that commission!
We "Agents" work for the "Broker".....
The Brokers get their split of every sale that we agents make.
If you "really" want to point a finger...the least you can do is point it in the right direction!!!!!

[scottyhal]

neeruam: What is your problem? Did you wash out of the principals school? Mad you couldn't pass the basic test to get a R/E Liscense. Relax ... go restudy and try it again. Are you a wannabe that couldn't be?

[neeruam-2009]

"Also, according to your colleagues below, you ALWAYS sell, especially the properties of we dummies who try to do it ourselves and then come crying to you when we fail."

Um.. yeah.. we only get paid IF we sell.. and so what if we ALWAYS sell.. you just said it right there.. why we DESERVE to get paid! We do, what you can't do and didn't do no your own.. so doesn't that mean that we deserve to get paid.
Posted by NYMommy at 09:47 PM : May 21

NYMommy, um.. yeah.. if you read my post as carefully as I hope you do your realtor-ing, you would know that I did not say you always sell, I was quoting one of your realtor cohort's bragging. I believe that you probably do sell most listed properties because, if it's not selling quick enough for you, you will badger the seller into lowering the price so that you can sell it and get your 6%.

AND I have NEVER said you don't provide a service or deserve to be paid, what I did say & guess I must say again for your benefit is that YOU ARE NOT WORTH YOUR SACROSANCT 6%!!! I for one CAN and DID sell on my own, thanks to greedy local realtors who would not budge off their sacrosanct 6%. And guess what, if I can't get a 3% realtor when I sell within the year, I'll do it myself again. I see no rocket science in the realtor's work, once I got over the scare tactics thrown my way.

[rpscot55]

Shame on 60 Minutes and Ms. Stahl! You DID NOT do your homework or American Consumers a service. Buying real estate is a major life event. Ms. Stahl should have included a "BUYER OR SELLER BEWARE WITH HER STORY!" We sold a non MLS brokerage. WE DID WELL. We sold MLS properties, cooperated with NAR, however, did not advertise properties on MLS. Changing brokerages, we became NAR members & pay for the advantages of MLS. Anyone foolish enough to buy/sell online is looking for trouble. I speak from experience. My first home, bought from a non professional was a nightmare & cost me a fortune. You NEED a professional to help & protect you from your ignorance. I became a REALTOR when my health forced me to change jobs. I did not want others to have my experience.

Clients are now trying to sell these properties they bought from an online broker or someone that was not a Real Estate Broker or Agent because of the pitfalls experienced & trying to recoop losses.

You NEED to hire a professional to do what you don't know, understand, or have competent knowledge of. Most home buyers get stars in their eyes, don't understand the fine print, the problems & the legalities! Want to buy real estate and you're not Donald Trump, FIND AN AGENT, don't know one, ASK! If he/she is a REALTOR, more the better, if not...BEWARE!

I can't imagine Ms. Stahl buying/selling without the help of a professional. It would be like sending an online broker out to do a 60 Minutes news story!

[larryrealtor]

Dear neeruam,
I know you are upset about how realtors are paid. I was wondering how you felt about auto workers? Do you feel they are over paid? I do not want to upset you but...last years net for me was over a million dollars and I do live pretty good. I was a full service agent for a few years and I never made over 60 thousand. I now am a discount agent that works on a flat fee and I have to thank people like you to make that happen. So thank you, thank you, thank you... a million times over. I sell less, work less, spend less but make alot more. Flat fee works for me...

[nymommy-2009]

"Also, according to your colleagues below, you ALWAYS sell, especially the properties of we dummies who try to do it ourselves and then come crying to you when we fail."

Um.. yeah.. we only get paid IF we sell.. and so what if we ALWAYS sell.. you just said it right there.. why we DESERVE to get paid! We do, what you can't do and didn't do no your own.. so doesn't that mean that we deserve to get paid. And if we failed.. then we don't make a penny. so what's the problem?

[nymommy-2009]

"The NAR and their stooges are the center on the most recent scam of pumping prices above fundemental values and pushing buyers into highly risky (toxic) loans"

This is SO UNTRUE. The prices got pumped up because there were more buyers than homes. They kept outbidding each other because they wanted the home. A lot of homes ended up going for over asking because of this, but the fact that their were atleast 2 or more bids on a home was proof enough that that is what the market commanded. Otherwise, how else do you determine who gets the home when all offers only go to asking! And try telling a seller who is happy that their home went for over asking NOT to accept it when it came about legitimately.

[nymommy-2009]

NVGUY - in addressing the issue of multiple bids. Our local MLS board has a rule that when an agent has an offer that offer MUST be presented to the homeowner within a set time frame. The homeowner then has the choice to neglect or accept the offer, or if he/she likes.. wait to answer. Now, in a hot market just about EVERY home had multiple offers. They usually came in around the same time. But, it didn't matter when they came in . All offers MUST be presented up untilthe home closes...even if the home is in contract. What would usually happen is an offer would be accepted and then another would come in, sometimes a little higher. Owners choice to take what he has and hold the other as a back up , or reject the first and take the now higher offer. If a lot of offers came in at one time, to avoid a back and forth I would tell all agents/buyers that they need to come with their "best and final" . This was to be fair to all buyers that wanted to make offers. This usally worked out well. I would NEVER make up an offer that didn't exist. Bad business if you ask me! If the agents bluff is called.. the client (seller) would lose! A lot of people felt "burned" because they were outbid, but that is the nature of a hot market.

[eva ribeiro]

Soooo, for that 500K house, we supposedly get $30,000... WRONG! The commission is split with the buyers agent, so leaves $15,000... Oh! I forgot, I have to give my broker his cut and my desk fee, so I get to keep about $7,500. Average days on the market in our area is between 90 and 180, during which I cover the cost of mailings, advertising, open houses, flyers, Broker's Open Houses. I've had to help paint, move furniture and even hang drapes... then there are the forms, the negotiating, the inspection, the appraisal, and making sure the sale gets through the closing.
When my client has a question or concern, they know they can contact me at any time.

By the way, I'm still reeling at the thought of buying a house by looking at pictures online! Does anyone you know look like the Glamour picture hanging on their wall? Nothing can replace seeing a house with a realtor. It's too much like buying a "pig in a poke"!

Eva Rangel-Ribeiro
Remax Diamond, Realtors
Kendall Park, NJ
www.erangelribeiro.remax-nj.com

[sosky-2009]

It's no surprise the liberal press has done it again. What is so wrong with people getting into a profession where yes, there is a possibility of making a good living. As a Realtor for the past 18 years I just don't understand why all the naysayers want to get into everyone's pocket. If 60 Minutes had done a thorough job of investigating the facts to the fullest, they would see how the Realtors of the world work their buts off to compete in a business where competition is endless.
Regarding the so called "6" percent commission as being a standard in the industry, this is an absolute non-truth. All Realtors know the commission is always negotiable. As market prices go up, so does one's earnings. However that does not mean we (Realtors) keep telling a seller that there is no negotiating the commission. I for one do not work with discount brokers. There are too many legal issues which could and usually do occur. Agency, disclosure, misrepresentation to name a few of the pitfalls an agent can fall into when they are not dealing with a professional who is passionate about his/her profession. I won't even get into the costs of being a successful Realtor. We spend literally thousands of dollars a month to maintain our business. I don't recall anything on 60 Minutes mentioning that Realtors are independant business owners with all the responsibility of any other business owners.
sosky

[reloc8]

My question is why was NAR not provided an opportunity to participate. Of course Kelman is all for internet brokerage, that is his business. So he has one point of view. Does CBS not care about providing more that one view point? I understand that NAR was prepared to be on the show but not invited. What a shame. I guess I will have to go to FOX NEWS to get both sides of the debate.

[thunt921]

I am a Realtor. A few things struck me listening to the 60 Minutes show about real estate and reading the blogs.

1. Unless you've been a real estate agent you wouldn't know how hard we work and how little we get paid per hour. I was horrified to learn that about 80% of the realtors in the company I worked for made less than $15,000 in 2005 .. and that's gross income in a hot market.

2. Buying and selling is emotional. Realtors have personal relationships with their buyers and sellers. We perform a huge number of services for our clients they'll never get from an online company.

3. Probably 1/2 of my listings were below 6% and many of the sales where I brought the buyer were below 6%. In my experience 6% is more a guideline depending on the circumstance.

I believe the general public has the following misconceptions about realtors. 1. They're all rich and greedy. 2. They don't work very hard. 3. Their time isn't important. 4. They're dishonest. 5. They're all the same.

I've encountered a few realtors I considered unscrupulous and have had the honor to have met many, many realtors who are dedicated, competent, and honest. It's like any other business .. there are a few who give the rest of us a bad name.

Before you judge a person, walk a mile in his shoes.

[lekarenl]

Really, it's all very simple! If you have the time, are not afraid to show your home to strangers and have the knowledge to sell your house, then by all means do it! If you don't and want someone who knows the rules, the laws, the business and the area, then hire a professional. And pay that professional for their experience and knowledge just as you would your doctor, lawyer or indian chief. See, I told you it was simple!