Commisions?
Hi Realtors,
Just wondering if you have a cutoff point as to where you are more or less likely to show a property for a potential client.. If the seller pays 2%, 2.5% 3% ???
Thanks!
---Mike
Hi Realtors,
Just wondering if you have a cutoff point as to where you are more or less likely to show a property for a potential client.. If the seller pays 2%, 2.5% 3% ???
Thanks!
---Mike
I wish there was a successful model where you could just pay realtors by the hour or that there was a cap (not the std. 6%). In markets where a home turns relatively quickly, I just think they are paid an unreasonable amount of money for the number of hours invested where a home sells within 90 days.
why do you feel 3% (assuming not double dipping) is excessive?
Other than not being the norm, what prevents you from drafted the listing agreement on a time and material basis, or hourly as you suggest?[ Edited by cjmazur on Date 08/19/2011 ]
As well as being an investor I am a Broker. I have done hundreds of transactions as an investor.
I offer 3.5 to 4% in the first 45 days of my listings. While agents will show property listed at 2% BAC to clients if the clients bring the property to them they will rarely show the property to the client on their own.
There are just too many other properties that are competitive out there where they can make a decent commission. In our market median price is about 200K and average commission is 3% so 3.5 or 4% get more interest.
Most of my rehabs are under contract in weeks and not months and the little bit of extra commission saves me lots on holding costs.
[addsig]
Certainly real estate agents serve opens up portal and opportunity in making the process much easier most especially using the advantage of internet technology where they can easily get in touch with their clients.
[ Edited by joel on Date 02/25/2012 ]