I mean real estate agents are crazy to think they deserve the pay they get.
Why? Mine did a shit ton of work for me and fought the sellers to get them to do the shit the appraiser wanted done.
As well as working for almost a year looking at different houses before we finally found the right one
I’m amazed at the downvotes, people stanning for realtOrs now? They work, but it’s not a hard job, no extensive education, no incentive to get lower prices because that actually eats into their cut, they resist any improvements to the system, and frankly love the high prices because it just earns them more since they work on % of sale value.
I’m not here to argue with you, rather than to point out it’s disingenious to say it’s not hard work. Also, there is actually an incentive to get lower prices, for if they weren’t trying to get one people would choose another realtor. Also, you don’t have to censor the world realtor.
The percentage they get has come down as house prices went up relatively. And they for sure still have to do a good job for you. Ideally they should save you as much as they make in the end. If your agent didn’t meet those expectations, they should be out of business soon.
The average home price in the United States was $495,100 in the second quarter of 2023
3% (as customary is 6%, split evenly to each realtor) of 485100 is about 15k
Why? Mine did a shit ton of work for me and fought the sellers to get them to do the shit the appraiser wanted done.
So a few hours of emails and phone calls is somehow $15k worth of work?
As well as working for almost a year looking at different houses before we finally found the right one
They probably had 50 other clients also during that time. Some of them pan out and is the 15k payday. Ultimately they only need to sell (or buy) like 10 houses a year to make a better living than you likely have. Less than 1 a month.
Mine didn’t get anywhere near that much and I think she earned every penny of it.
I tried to go at it without one at first and I know exactly how hard that was, I have no doubt that she earned every penny of what she got.
Also is it illegal to tip a realtor or mortgage loan officer?
Because they both refused the money I tried to tip them very quickly and firmly.
Do you think a house gets sold every day, or that everyone ends up buying? Or that they even get that $15k as take home?
The industry around home sales is absolutely gross, but the broker is taking a cut here. Not all real estate agents are brokers, in fact most are not. On average, most agents are making as little as $60k/yr and as high as $100k/year, region dependant. Average is going to be around $85k. Above that $100k mark is the top quartile, and above $130k-ish is going to be the top 10%.
It’s not as lucrative as you think it is.
Our agent was a cool dude. It was the sellers that were always out of their mind. The lady who sold us our house hired a junk hauler to clean the attic. He had an accident and fell through the ceiling. No big. He said he’d cover the cost of repair. She didn’t want to do any of the work to make it happen, though. She said we needed to arrange the repair.
Insanity. Only in the market we’ve been in would this kind of thing be acceptable. But we’d put offers in on about 15 different houses. All of them got outbid. Not only was this one the least expensive, it’s also one of the better built ones (fully brick clad, for starters). It was our first offer to be taken. We were exhausted with the process and ready to move. So I called the handyman and arranged the repair.
And then I called the junk hauler who said he’d cover the cost of repair. And when I told him the damage was $350, he RENEGGED. Said that was too steep. Couldn’t we find someone cheaper? He will have lost money on this job. Blah blah blah. I told him look, I don’t care about 350 bucks. And if he didn’t want to pay, then whatever, I have nothing in writing. But the house had to be inspected after that and ofc it shows in the report and so that was a shitty thing for him to do. And I hung up the phone.
4 weeks later, I got a check in the mail for $300. Even in making it right, the bastard cheaped out on me.
I hope this is it. I love my house. It needs love here and there. It’s old, but it’s got great bones. Plus, it’s in a really nice area close to a lot of stuff. I do NOT want to deal with this bullshit for at least another 30 years.
