Real Estate Agents Obsolete

30 replies
So I'm a real estate agent and iv been reading some interesting debates online regarding my industry. Now I may be posting this in the wrong section however I know there are a couple RE agents in this subform. Here's the question..

Do you think real estate agents will become obsolete soon? With websites like homevana where you can get connected with a buyer or seller, negotiate the entire transaction online and sell your home without an agent, saving you thousands in commission. Why use an agent? What's the value? Let me know your input an I'll tell you mine. I'd like to start a healthy debate. Thanks.
#agenta #estate #obsolete #real
  • Profile picture of the author SalesGod
    Other then saving money on commission. Is there anything other "benefit" of using an online platform vs a living berating caring professional?
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    • Profile picture of the author DABK
      You feel like you're in control, no waiting for an agent to set up an appointment.
      You can do things any time of night and day the seller/buyer is awake.

      Originally Posted by SalesGod View Post

      Other then saving money on commission. Is there anything other "benefit" of using an online platform vs a living berating caring professional?
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      • Profile picture of the author SalesGod
        Originally Posted by DABK View Post

        You feel like you're in control, no waiting for an agent to set up an appointment.
        You can do things any time of night and day the seller/buyer is awake.
        yes your in control, completely 100% in control and when negotiating something as complicated as a real estate transaction in todays SUE happy generation is that neccesarily a good thing?


        who do you think is more likely to take more time to set up an appointment, a homeowner who works all day or a real estate agent that's on call 24/7? Also do you have the sales ability to get the buyer emotionally attached to the house during the walk through and nudge them to the closing table if its the perfect house for them? obviously RE agents don't hard close anyone on buying a house however even when buyers find the perfect house they can get cold feet when it comes to pulling the trigger. After all it is the biggest purchase of there life most likely.


        yes you can get ahold of the seller anytime there awake as you can the real estate agent as well is there any benefit to this over an agent?


        An agent can also get professional pictures taken and marketing material created to make the house have a higher perceived value, stage the home, recommend upgrades and repairs to bring it up to selling standards and get top dollar, agents by law have to disclose anything they know is wrong with the property ect...


        And the one that most people care about is saving on commission. Well let me ask you this, Mr. for sale by owner. will you be taking a class in contracts before you decide to sell? are you a expert negotiator? what makes you think you can negotiate better then someone who does it for a living? how many RE transactions have you done this year? how many has the realtor done? A good agent will get top dollar for your home take his commission and still net you a higher amount then if you sold it yourself.


        Theres a reason 89% or for sale by owners eventually list with an agent.


        let me ask you this, why don't people represent themselves in court instead of paying thousands for a lawyer? does that answer your question?


        Id love to see anyone make a valid argument of how technology can replace RE professionals.
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        • Profile picture of the author sandalwood
          Real estate agents becoming an obsolete species is probably (I don't what the future holds) a useless line of thinking. The reason is simple. It is called fiduciary duty.

          A real estate agent has a fiduciary duty to act in the best interests of his or her client. That means if the home seller or home buyer think they got screwed and shouldn't have had the REA done their due diligence the wronged party can sue the agent along with the other party.

          This is super important and makes the client feel secure his interests will be looked after. Yes, I was a real estate broker. When we wrote contracts we had both parties initial and sign every form and addendum plus we put notes in the case on what was said.

          As for the FSBO, I personally loved them. I'd even help them with the process. You have no idea how many people don't know about title and escrow for example. Did I make money helping them? You betcha baby. To complete my fiduciary responsibility I made full disclosure on the contract.

          I also worked foreclosures. Another great money maker.

          All those real estate websites are nice. We didn't have that luxury back in the early 90's. So we relied on our wits and smarts. You can get a boat load of buyers and sellers through a secret organization in your home town. Almost all towns have them so you should be a happy camper.

          It does not involve the Internet or technology of any kind except a copy machine. If you know how to use it, bingo! buyers and sellers galore. So do I think REAs will be obsolete. Nope. If you use the secret, you'll be more in demand than any criminal lawyer in town.

          No, I won't divulge the organization. All I'll tell you is keep your eyes open as you drive around town. You'll see its shiny temples.

          Good luck and I hope you make a ton of money.
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        • Profile picture of the author DABK
          I merely supplied the reasoning behind why people go the no-agent route.

          I used to be in real estate appraising... became convinced then that most people should not represent themselves...

          Mostly because they ended up not saving a penny and spending a lot of time in the process, which has enough hassles when there's a good agent involved.

          That notwithstanding, people keep trying to bypass agents... People who do not know how to negotiate, people who think it's smart to save on a home inspection, etc.

          Originally Posted by SalesGod View Post

          yes your in control, completely 100% in control and when negotiating something as complicated as a real estate transaction in todays SUE happy generation is that neccesarily a good thing?


          who do you think is more likely to take more time to set up an appointment, a homeowner who works all day or a real estate agent that's on call 24/7? Also do you have the sales ability to get the buyer emotionally attached to the house during the walk through and nudge them to the closing table if its the perfect house for them? obviously RE agents don't hard close anyone on buying a house however even when buyers find the perfect house they can get cold feet when it comes to pulling the trigger. After all it is the biggest purchase of there life most likely.


          yes you can get ahold of the seller anytime there awake as you can the real estate agent as well is there any benefit to this over an agent?


          An agent can also get professional pictures taken and marketing material created to make the house have a higher perceived value, stage the home, recommend upgrades and repairs to bring it up to selling standards and get top dollar, agents by law have to disclose anything they know is wrong with the property ect...


          And the one that most people care about is saving on commission. Well let me ask you this, Mr. for sale by owner. will you be taking a class in contracts before you decide to sell? are you a expert negotiator? what makes you think you can negotiate better then someone who does it for a living? how many RE transactions have you done this year? how many has the realtor done? A good agent will get top dollar for your home take his commission and still net you a higher amount then if you sold it yourself.


          Theres a reason 89% or for sale by owners eventually list with an agent.


          let me ask you this, why don't people represent themselves in court instead of paying thousands for a lawyer? does that answer your question?


          Id love to see anyone make a valid argument of how technology can replace RE professionals.
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  • Profile picture of the author Claude Whitacre
    Originally Posted by NeedLeads View Post

    So I'm a real estate agent and iv been reading some interesting debates online regarding my industry. Now I may be posting this in the wrong section however I know there are a couple RE agents in this subform. Here's the question..

    Do you think real estate agents will become obsolete soon? With websites like homevana where you can get connected with a buyer or seller, negotiate the entire transaction online and sell your home without an agent, saving you thousands in commission. Why use an agent? What's the value? Let me know your input an I'll tell you mine. I'd like to start a healthy debate. Thanks.
    There will probably always be people who prefer dealing with an agent, rather than doing it themselves.

    And, you benefit from inertia. Habitually, most people will buy the same way they always did, especially older people. Eventually, they may be replaced by a group with different buying habits, but for now, you are safe..I think.

    It's the same with me. I own a specialty retail store. Amazon and Wal-Mart sell what I sell..

    In ten years, my kind of retail may be extinct. But I just plan for it. And concentrate on the next few years, before I retire.


    By the way, for being a real estate agent, you sure are good at selling us on why we don't need you. .
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  • Profile picture of the author Jason Kanigan
    What about liability and protection?

    The realtor's job when working with the buyer is to protect the buyer from screwing up, like making sure a home inspection is done. That's just one example.

    You may as well say attorneys are obsolete.
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    • Profile picture of the author ewenmack
      The more sophisticated seller will see the network
      of buyers the realtor has cultivated.

      For busy professionals it's a real inconvenience
      dealing with people because they are thinking
      "I can't cram more into my day than now."

      So, there will be more the concierge type
      and those who will go the DIY.

      Just a widening of the gap between the two.

      Best,
      Doctor E. Vile
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  • Profile picture of the author smartprofitmoney
    Hello,

    I have been helping realtors for a long time with online marketing, and can tell you this.

    Real Estate agents only charge you to sell your home, so it is always best to use a Real Estate agent when searching for a home, they add a huge value in finding a home, and have many tools that help the home finding process easy and fast.

    Real time MLS properties and alert system is only done by Realtors, all public home searching websites like Zillow and Realtor.com are not real time, even though they say they are. Public home search websites will show properties active but have been sold as far back as 60 days or more.
    So much for real time properties.

    Now contracts must be done only by a Real Estate agents only, there is also tons of paper work that agents do for buyers and sellers that no one sees,

    My thoughts on your question is, Luxury homes buyers and sellers always use a Realtor, now lower value homes, have many buyers and sellers looking for the best deal and will always try not to use a realtor when buying or selling, which is strange because if they only knew that realtors do not charge you to find a home.

    Thank you.
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  • Profile picture of the author AmericanMuscleTA
    There will always be real estate agents.


    They're there for the buyers' and sellers' protection.


    Why do you think most FSBOs end up listing their houses with an agent? Sure, there are plenty of website they advertise on... but most end up with an agent.


    Plus, there's more that goes into selling a house than meets the eye. The average "joe" isn't selling houses everyday, so they don't have a clue what's going on. They don't know how the process works. They don't know what to look for. They don't know how to negotiate (If you can find an agent who knows how to negotiate... they'll make you a killin' or save you a killin'). They don't know the legal stuff. And, when it comes to real estate, most people don't know their left hand from their right.


    Yep, real estate agents will always be around.
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  • Profile picture of the author Virtualghost
    Few years back had Realtor look through my house to sell,didn't like the top price he thought I would get so paid $50 to advertise in Newspaper in Big City about 1hr and a half away.
    In a 10 day period had 3 lookers and the first looker came back with offer of $20,000.00 more than what the realtor said I could sell it for.My total costs,$450.00 $50 for Ad and $400 for Lawyer.
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  • Profile picture of the author chuckievee
    "Professional" real estate agent? LOL Not so much in my experience. Somewhere above someone stated that a real estate agent knows blah blah blah. Had my home on the market for a very short time about 4 years ago when I got tired of all these "professional" real estate agents who left lights on, blinds up, doors unlocked or wanted to show my home in 15 minutes. Sorry but have a dog and need more time than 15 minutes. This was also before I got into wholesaling full time. Now I know better.

    Feedback from the showing agents when they did get back to my agent, many simply ignored her, was the buyer wanted a 3 BR house, My listing clearly showed it was a 2 BR. The buyer wanted 2 baths, my listing clearly showed 1 bath. The buyer wanted a garage, my listing clearly showed a parking pad. Why the hell did these "professional" agents waste the buyers and my time showing my home that did not meet the buyers needs?

    Lets say an agent will take people out to show multiple homes does the agent really familiarize themselves with the homes they are showing or will just kind of wing it? How many RE agents know home construction and besides they are not able to cross certain lines because they are licensed.

    As for a FSBO whom the professional RE agent makes fun of, who knows my home better than me? Granted most FSBO don't know what they are getting themselves in for when trying to sell their home by themselves.

    Many RE "professionals" are part timer agents so all the stuff about real estate agents bring this or that to the table, they work 24/7 to sell your home, etc. all I heard was blah blah blah. The part time agent is working a full time job doing something else so their time is limited. I have friends who are part timers and constantly asking me if I want them to sell my properties for me. No way i hell would I let them anywhere near my properties.

    In a perfect world the "professional" real estate agent will do all that but in reality very few agents can pull it off. Just my experience with buying and selling homes. FYI I wholesale real estate and deal with only 1 real estate professional when I need to. Most of the time I use standard contracts and have a real estate attorney to cover my butt who is a lot cheaper than a 6% fee for a "professional" RE agent.

    And as for access to the MLS, it is all in who you know to get real time current information on listings.

    Why am I here on the WF you may be wondering? Wholesaling is a grind and even though I have a nice network built up and have made some serious money I am ready to retire to the beach to pursue my hobbies one of which is IM. I have started doing hard money loans as well. Nice return on my money (12-15%) and I let others do all the hard work of finding, fixing and flipping.
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    • Profile picture of the author SalesGod
      Originally Posted by chuckievee View Post

      "Professional" real estate agent? LOL Not so much in my experience. Somewhere above someone stated that a real estate agent knows blah blah blah. Had my home on the market for a very short time about 4 years ago when I got tired of all these "professional" real estate agents who left lights on, blinds up, doors unlocked or wanted to show my home in 15 minutes. Sorry but have a dog and need more time than 15 minutes. This was also before I got into wholesaling full time. Now I know better.

      Feedback from the showing agents when they did get back to my agent, many simply ignored her, was the buyer wanted a 3 BR house, My listing clearly showed it was a 2 BR. The buyer wanted 2 baths, my listing clearly showed 1 bath. The buyer wanted a garage, my listing clearly showed a parking pad. Why the hell did these "professional" agents waste the buyers and my time showing my home that did not meet the buyers needs?

      Lets say an agent will take people out to show multiple homes does the agent really familiarize themselves with the homes they are showing or will just kind of wing it? How many RE agents know home construction and besides they are not able to cross certain lines because they are licensed.

      As for a FSBO whom the professional RE agent makes fun of, who knows my home better than me? Granted most FSBO don't know what they are getting themselves in for when trying to sell their home by themselves.

      Many RE "professionals" are part timer agents so all the stuff about real estate agents bring this or that to the table, they work 24/7 to sell your home, etc. all I heard was blah blah blah. The part time agent is working a full time job doing something else so their time is limited. I have friends who are part timers and constantly asking me if I want them to sell my properties for me. No way i hell would I let them anywhere near my properties.

      In a perfect world the "professional" real estate agent will do all that but in reality very few agents can pull it off. Just my experience with buying and selling homes. FYI I wholesale real estate and deal with only 1 real estate professional when I need to. Most of the time I use standard contracts and have a real estate attorney to cover my butt who is a lot cheaper than a 6% fee for a "professional" RE agent.

      And as for access to the MLS, it is all in who you know to get real time current information on listings.

      Why am I here on the WF you may be wondering? Wholesaling is a grind and even though I have a nice network built up and have made some serious money I am ready to retire to the beach to pursue my hobbies one of which is IM. I have started doing hard money loans as well. Nice return on my money (12-15%) and I let others do all the hard work of finding, fixing and flipping.

      your entire argument is based around amature, lazy, non professional real estate agents. of course part time agents aren't going to be up to par if they were successful why would they be working a day job. there will always be fsbos who "think" they can negotiate better, have a larger network, have more sales techniques, more knowledge of legal issues and contracts, ect then real estate agents. these are probably the same people who fix a car with paper clips and bubble gum. however it is a fact that most fsbos eventually list with an agent. and I think the main topic of this discussion is will technology replace agents isn't it? sounds like your purpose was to vent about your bad experience, seems like your pretty emotional about it, and this is why a good realtor is a far better negotiator then you. they keep emotions out of the deal.
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      • Profile picture of the author Kiwigal
        Agree with Sales God on this. I was a realtor back in the days in New Zealand. I needed to study the Law of Contract (can be very dangerous in amateur hands) and also Real Estate Law etc before I was allowed to sell.
        Most people get emotionally involved in buying/selling what usually is the biggest investment of their lives and really many don't understand the legal issues concerning the selling and buying of property.
        Negotiating between a buyer/seller is a vital skill in this industry and you have to be good at it or get out. The most skilled and successful professionals I came across in this business had superior negotiating skills and this is why I believe it would be very hard to sell housing online alone. Could you imagine the lawsuits.
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  • Profile picture of the author insurpro100
    This has been going on for years. I listed my house on the MLS for $275.00 almost the same thing. Their will always be realtors involved Just like their will always be fsbo to.
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  • Profile picture of the author SalesGod
    Looks like the OP never responded hopefully he's out prospecting instead of thinking of more "what ifs". The fact is everything changes, every industry will change and you'll need to adapt. If what you do is making money now ride it out until your forced out. You shouldn't be chasing commission checks your whole life either. Make your money, invest your money, create different revenue streams and IF what your doing does become obsolete you'll be fine. Always remember "nothing gold can stay" now sell on pony boy.
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  • Profile picture of the author DaniMc
    Originally Posted by NeedLeads View Post

    So I'm a real estate agent and iv been reading some interesting debates online regarding my industry. Now I may be posting this in the wrong section however I know there are a couple RE agents in this subform. Here's the question..

    Do you think real estate agents will become obsolete soon? With websites like homevana where you can get connected with a buyer or seller, negotiate the entire transaction online and sell your home without an agent, saving you thousands in commission. Why use an agent? What's the value? Let me know your input an I'll tell you mine. I'd like to start a healthy debate. Thanks.
    Step #1 - Stop reading anything negative. Seriously - completely isolate your mind from negative info. The world is HUGE, there will always be room for you in almost any business you choose. There are still people doing quite well building horse carriages.

    Turn off the news completely. Ignore the economy completely. Stop surfing forums. Ignore negative comments from the guy above. IGNORE EVERYONE - you do what you want to do. You can make a great career doing almost anything.

    If consuming all this negative info is so destructive, then why do people do it? There is only one reason:

    People are looking for reasons to validate why they will fail.

    This is an almost completely imperceptible sub-conscious form of self-sabotage. If you are looking to find reasons why you might fail, you will be able to shift blame away from yourself. "See, it was the economy" or technology or whatever else BS excuse.

    Step #2 - Learn to work.

    If you fail, it's your own fault. It's your own laziness. It's your own lack of faith in yourself. Most people are so lazy it is incredible they believe they will make a living. I used to be the same way. Start building disciplines into your day and force your ability to work to increase.

    If you fail - it is not the fault of technology or the economy - it is YOUR fault.

    Step #3 - Learn from the best. Ignore the losers. Find people who are doing well at what you want to do and either a) Go work for them and work hard to become as good (better) than them b) Pay them to teach you.

    Making money is simple. It takes hard work - but none of this is rocket science. And even rocket science, if you want to succeed at it, there is a clear career path.

    Most people's problem? Laziness and excuses. This very post is you looking for excuses. You don't want to deal with the fact that you are failing because of your own doubts, negativity, and laziness.

    You can do it. Push harder. Get to work.
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    • Profile picture of the author DABK
      It's interesting. When it comes to real estate agents, people don't bother to find a good one, then, based on one or 4 bad experiences, they convict the whole profession.

      They do not do that with all professions, they definitely don't do with purveyors of products... They don't say, I bought a Ford Mustang, it sucked, therefore, all cars suck. They say, Ford Mustangs suck. At worst, they say all Ford cars sucks. And they go buy a Mitsubishi.

      It strikes them as ridiculous. But they hire a Century21 agent that sucks and all real estate agents suck. That does not strike them as ridiculous.
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  • Profile picture of the author Barry Unruh
    I seem to remember this same debate about car dealerships many years ago when Craigslist, EbayMotors, Cars.com, etc.. all hit the internet.

    There doesn't seem to be that many fewer car dealerships and car salesmen today than there were 10 years ago, or 20 years ago...
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  • Profile picture of the author quadagon
    I can't speak specifically about real estate but I think everyone involved in offline business needs to have an eye on the future.

    Take a short walk through recent history and you'll see that change happens at such an alarming rate that for many businesses it's evolve or die.

    Look at blockbusters, high street music shops, bookstores for examples of business that either failed to adapt or are struggling to adapt.

    Much of this comes with from an arrogance on believing that 'we know our customer' and from underestimating how much of a motivator faster/cheaper/easier is.

    I recently gave a speech to some FTSE 100 companies and essentially said

    'the biggest risk to your business is an undervalued employee. Somewhere in your business, answering phones, stacking shelves is an ambitious employee with only one question in his mind if I was to start this business now how would I do it. That question when answered will revolutionise your industry.

    The sad thing is you won't see it because you are rooted in how we've always done it. In fact I promise you some of you here will laugh at their suggestion.

    When that day comes try and stop yourself from saying

    Nobody wants that our customers want....

    Because history has shown us that:

    Our customers want to browse DVDs before renting them

    Our customers want to sleep in a hotel not someone else's house

    Our customer want the peace of mind of a taxi

    Our customers want to hold a CD

    Our customers want to feel a book'

    Many of those business are no longer around.

    Now there are three things I think you can do:

    You can ignore it and hope it never happens.

    You can continue as normal and hope it doesn't happen during your working life.

    You can be the force of change.

    For me there's only one option because I can see changes coming to healthcare, insurance, hr, recruitment and education amongst others.

    That's not to say that continuing as normal is a bad plan especially if you are aware that this maybe only for a limited amount of time.

    Then when 'this is how we've already done it' changes to 'that's how they did it in the old days' you won't be bothered.
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  • Profile picture of the author NewParadigm
    What's missing in the discussion is...........at what price are they obsolete?

    IMHO, they are the most overpaid people around. Especially listing agents. Paying 6% is ridiculous. They literally do nothing but put your property on the MLS. Any technical assistance at closing can be handled by title company and RE attorney for a small flat fee.

    I just listed my lakefront property on a flat fee MLS deal for 600. I am paying 2% to the buyers agent. Listed for $750k so yeah, a few percent adds up for doing little or nothing.

    The realtors associations have done a good job snowballing the public into believing their services are worth a fortune. The local saturday AM radio shows by agents basically tell you you can't wipe your butt without talking to an agent. It's over the top ridiculous. They are ripe for a big fall, even more than they already have. Everybody and their brother were agents or mortgage originators at the bubble, nobody adding any value at all.

    I have my property on craigslist as well. Got 50 responses! All from RE agents wanting to list it, telling me all their wonderful marketing. Not a single one previewed the property. Not one. Not one has a buyer to pocket themselves 15k comission??? go away! LOL.
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    • Profile picture of the author DABK
      The fee is high, if they do nothing, like you say. And, I'm sure, some do not do enough.

      But I've seen it from a different angle. I once was a real estate appraiser. I've seen some people overpay by as much as 8 times the fee of both agents and people who were on the market 5 months when an average agent would have sold their house in 2 months, a good one in 4 weeks, for a higher price.

      I've seen people make mistakes equal to the fee of the agent when it came to getting the mortgage... People lose the earnest money (anywhere between $1k to 20k) because they didn't have an agent or did not listen to the agent.

      I've seen people sell/buy for the same money they'd have gotten after the agent's fee, or higher... For all it took some time and effort... And, for some, given their skills, the time was doing the agent's work was well spent time, for others, it was not.

      So, yeah, it's at what price. Now, it is easier to buy and sell-by-owner, than it was 10 years ago... So, more people ought to be able to sell by themselves... But, you're far from having all of them do it.

      Plus, 10 years ago, there were fewer gadgets to play with...

      The real problem here is that none of the people who sold through an agent can tell you how they'd fare without one; none of the people who bought, either.

      The same for people who did not use an agent.

      Just because you, NewParadigm, sold for $750k and are happy with that does not mean that an agent couldn't have sold for more for all the people who sell for $750k and are happy with that.

      The only study I know of this is old by now and done by the Association of Realtors... It was done when I was an appraiser and, their conclusions, (houses sold without an agent sold for less but the owner got $1k more in his/her hand, on average) matched what I was seeing as an appraiser.

      There's an agent around here: he will sell your house in 4 weeks for a price you agree to or else they'll buy it from you, at that agreed upon price... There's an agent I know... his promise is: I'll try, buddy... but I think you'll have to lower your price a bit...

      The question is, how much research into real estate agents you want to do before you hire one?

      Originally Posted by NewParadigm View Post

      What's missing in the discussion is...........at what price are they obsolete?

      IMHO, they are the most overpaid people around. Especially listing agents. Paying 6% is ridiculous. They literally do nothing but put your property on the MLS. Any technical assistance at closing can be handled by title company and RE attorney for a small flat fee.

      I just listed my lakefront property on a flat fee MLS deal for 600. I am paying 2% to the buyers agent. Listed for $750k so yeah, a few percent adds up for doing little or nothing.

      The realtors associations have done a good job snowballing the public into believing their services are worth a fortune. The local saturday AM radio shows by agents basically tell you you can't wipe your butt without talking to an agent. It's over the top ridiculous. They are ripe for a big fall, even more than they already have. Everybody and their brother were agents or mortgage originators at the bubble, nobody adding any value at all.

      I have my property on craigslist as well. Got 50 responses! All from RE agents wanting to list it, telling me all their wonderful marketing. Not a single one previewed the property. Not one. Not one has a buyer to pocket themselves 15k comission??? go away! LOL.
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  • Profile picture of the author bizgrower
    I'm pretty much going to echo DABK here.

    Property value and market conditions enter the picture. Generally, the high end (above "normal"
    bread and butter housing prices) properties take longer to sell. What is going on in the economy
    for the street the house is on is also going to have an impact.

    Some agents don't do much and some are sophisticated marketing machines paying a lot
    for their online and offline presence - beyond the MLS. Have to do your research on the agents
    as well as the value of your home, and the market for your home.

    When my brother was a new agent, Dad gave him his own home to sell. The market was pretty
    strong and it was in a desirable area. Nothing happened for 3 months, or maybe 6 months - I
    don't remember the listing agreement term. Dad then listed with "the agent" for the neighborhood.
    She had it under contract in less than a week because, at any given time, she has a list of buyers
    for that neighborhood. She constantly advertises and markets herself.

    I did some fix and flips when the area economy was strong. It did not seem to matter who you
    listed with because it would sell. They were entry level homes in decent neighborhoods, and
    this was before it was fairly easy to sell yourself.

    With one house, I interviewed 3 or 4 agents. One was a "name" Remax agent. He would have
    taken 7% and wanted to list it for $111,000 instead of the $115,000 I had come to after
    considering market conditions and comparables. (I did not like his corny "relationship building"
    jokes either, etc.) Anyway, I knew the market was pretty hot, and I was confident in my price
    so went with another agent who listed for 3%. Sold it for my price and fast enough. (Turned
    out to be a good thing that I was in the mortgage business at the time because I had to light
    a fire under the buyer's mortgage brokers rear end.)

    Dan
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    "If you think you're the smartest person in the room, then you're probably in the wrong room."

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  • Profile picture of the author trip3980
    I want to post some statistics I found that might give you a good prospective on the new economy. Hint: Their are not enough businesses to fill position and I'd also point out the housing bubble.

    Acording to Forbs, the SBA defines a small business as an enterprise having fewer than 500 employees. There are almost 28 million small businesses in the US and over 22 million are self employed with no additional payroll or employees (these are called nonemployers). Over 50% of the working population (120 million individuals) works in a small business. Small businesses have generated over 65% of the net new jobs since 1995. Approximately 543,000 new businesses get started each month (but more employer businesses shut down than start up each month). 7 out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years and a quarter stay in business 15 years or more. 52% of all small businesses are home-based. There were 22.5 million nonemployer firms in 2011 (up almost 2% from the year before). Approximately 75% of all U.S. businesses are nonemployer businesses. 19.4 million nonemployer businesses are sole proprietorships, 1.6 million are partnerships and 1.4 million are corporations. The fastest growing sector for freelance businesses in 2011 included auto repair shops, beauty salons and dry cleaners. Total +4.26% revenues from nonemployers hit $989.6 billion in 2011 (up 4.1% from 2010). Nonemployers had average revenues of $44,000.
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  • Profile picture of the author NewParadigm
    I've seen the BS propaganda claims that RE agents can sell your home on average 13% more than FSBO. That is total BS misleading by realtor.org. FSBO's are generally less expensive properties, including a large number of mobile homes.

    It's like saying salesman A gets a higher price than salesman B on selling cars by an average of 13%. What they don't tell you is they sell different car lines. Salesman A sells Chevies and Salesman B sells Cadillacs.

    It's very intentional misleading of the public. I've caught dozens of agents spewing those bogus talking points and corrected them.

    FSBOs vs. Real Estate Agents. Do agents really sell homes for 13% more? | Real Estate Decoded

    Agents are not lawyers. 90% of them are worthless. RE lawyers are cheaper than paying agents commission and you get real advice.

    I've bought n sold about 40 properties and have used a buyers agent at a big discount to bird dog some properties. They are helpful finding some deals. But anyone who says they are "free" are deluding themselves as well. I wish my clients and customers considered by consulting/services/products didn't cost anything too, after I cash their check!

    To each their own, but my point is, you are paying for a service, just make sure you are getting a good deal, and that 6-7% commissions are not set in stone, despite what the national association of realtors says.

    There should be a National Association of Internet sellers/marketers putting out propaganda to "educate" consumers to ensure guaranteed profits for all sellers and marketers!
    Signature

    In a moment of decision the best thing you can do is the right thing. The worst thing you can do is nothing. ~ Theodore Roosevelt

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    • Profile picture of the author DaniMc
      Originally Posted by NewParadigm View Post

      I've seen the BS propaganda claims that RE agents can sell your home on average 13% more than FSBO. That is total BS misleading by realtor.org. FSBO's are generally less expensive properties, including a large number of mobile homes.
      Not BS at all. Almost all FSBO's are very unsophisticated marketers. They are the type who say "the house sells itself" - there is a reason why over 80% eventually list with an agent.

      I am a professional salesman. My team are pro's who do it daily. No way an amateur is going to beat a pro. Especially once negotiations begin. Every. Single. One. of my offers has been accepted. All of them. This is exceptional and is based on skill. I beat 16 other people on one deal just a few months ago. I was selected even though several other offers were higher. Most people don't know how to sell anything - much less get under contract to buy for $10,000 less than the next highest offer.

      Especially once you are looking at higher end or commercial buildings - this stuff isn't for chumps or amateurs.

      I will absolutely get a higher price than a FSBO. I will absolutely pay my own way in the transaction. Even on the listing side - I never cost a dime. I create my own value.

      Agents are not lawyers. 90% of them are worthless. RE lawyers are cheaper than paying agents commission and you get real advice.
      True - RE agents are not lawyers. And lawyers are not agents. Knowing facts is not where the value is in any business. Knowing how to SELL better than your competition - that is the money skill. Marketing and sales are the bread and butter.

      Sure, lawyers are great - but don't have one create your target market, write your ad copy, make the cold calls, or help you get ready to sell.

      I've bought n sold about 40 properties and have used a buyers agent at a big discount to bird dog some properties.
      Just so we are clear - you are NOT a typical homeowner who buys/sells property just a few times over 30-40 years. Nobody can get good at anything doing it once every few years. Hell, most agents aren't that great because they only do 5-6 deals a year. Nobody can get good at anything 5-6 times per year.

      There are plenty of people who diss agents - most of them have experience buying and selling lots of properties. Our clients absolutely love us. We have saved their bacon in serious ways. There are things that can go wrong and the average buyer/seller would screw it up big time.

      Sure, if they do it a few times per year, they could probably look after themselves - but 99% of people own one home at a time, and live there for 7-10 years.

      I wish my clients and customers considered by consulting/services/products didn't cost anything too, after I cash their check!
      Perhaps you should take a lesson and position yourself better. Every sales job I have ever had was centered around making the product actually cost $0 - or even provide more value than it costs.

      This is sales! People ONLY buy ANYTHING if the value is more than the price. If you aren't positioned this way, you are really, really missing out.

      To each their own, but my point is, you are paying for a service, just make sure you are getting a good deal, and that 6-7% commissions are not set in stone, despite what the national association of realtors says.
      True all commissions are negotiable. I will tell you the same thing I tell people who want me to discount because some other agent will discount -

      "Most agents are discounting because they are starving to death and NEED a commission. You have to wonder, if they can't even negotiate their own commission very well, how will they negotiate with YOUR money? Will they give you good advice or will they advise you to do whatever it takes to close the deal? I can discount my commission - which of these services would you like me to remove?"

      Have fun with your discounted bird dogging agents who probably qualify for food stamps. They are the REAL PROS of this industry.

      This is real business. This is hardcore sales at it's finest. The "coffee club" agents don't do well. But MOST people in every profession are average - that is what average means.

      You could do the same thing in your industry. You have people who are charging much, much more than you, making a lot more money, and make it look free.

      Don't hate - imitate.


      .
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      Be kind, for everyone you meet is fighting a hard battle.
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    • Profile picture of the author SalesGod
      Originally Posted by NewParadigm View Post

      I've seen the BS propaganda claims that RE agents can sell your home on average 13% more than FSBO. That is total BS misleading by realtor.org. FSBO's are generally less expensive properties, including a large number of mobile homes.

      It's like saying salesman A gets a higher price than salesman B on selling cars by an average of 13%. What they don't tell you is they sell different car lines. Salesman A sells Chevies and Salesman B sells Cadillacs.

      It's very intentional misleading of the public. I've caught dozens of agents spewing those bogus talking points and corrected them.

      FSBOs vs. Real Estate Agents. Do agents really sell homes for 13% more? | Real Estate Decoded

      Agents are not lawyers. 90% of them are worthless. RE lawyers are cheaper than paying agents commission and you get real advice.

      I've bought n sold about 40 properties and have used a buyers agent at a big discount to bird dog some properties. They are helpful finding some deals. But anyone who says they are "free" are deluding themselves as well. I wish my clients and customers considered by consulting/services/products didn't cost anything too, after I cash their check!

      To each their own, but my point is, you are paying for a service, just make sure you are getting a good deal, and that 6-7% commissions are not set in stone, despite what the national association of realtors says.

      There should be a National Association of Internet sellers/marketers putting out propaganda to "educate" consumers to ensure guaranteed profits for all sellers and marketers!
      You sound pretty silly. Is there any benefit of not using a real estate agent besides the "price issue"?
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  • Profile picture of the author bebetsizo
    I use to work as a real estate agent here in the UK. Many franchises are building up around online estate agency. It is working and will continue to grow. Even online, its still just marketing. You still have to go out and negotiate with clients.
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    • Profile picture of the author trip3980
      Originally Posted by bebetsizo View Post

      I use to work as a real estate agent here in the UK. Many franchises are building up around online estate agency. It is working and will continue to grow. Even online, its still just marketing. You still have to go out and negotiate with clients.
      The problem with today's market is almost every business is saying that they can do business without human interaction. No lawyer, or internet property listing will fill the void of human to human contact. As for the above statement if you know your way around yes a lawyer would be cheaper and better but a real estate agent will always be someone to guide a sale more effectively because they are by nature sales people. Weather they are good or not is another issue.
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