Buying OR selling, use professionals in ALL aspects of the transaction.
Why do you need an agent if you’re a buyer in real estate??? I’ve been following this NAR lawsuit like every other realtor around, and I like every other realtor around have no idea what is going to happen! Apparently, sellers cannot be expected to pay the buyers agent commission. Well, ok. Let’s see if I can figure this out. The MLS states right there for everyone to know exactly what the commission payout is to the buyers agent. It has always been a negotiable fee between the listing agent and the sellers. I guess now things are a changing….stay tuned as it’s being battled out in the courts, but I’m sure you as am I are all sitting on the edge of our seats!! Call local Realtor, Kim Kelly at 760-285-3578 if you are looking to buy or sell anywhere in the Coachella Valley.
When I go on a listing appointment, one of the most important questions by the sellers is always “what about the commission?” I always explain to them that commission is negotiable. It is traditional for the sellers to pay 6%, which is 3% to the List agent and 3% to the buyers agent. I very rarely get 6% agreed to! I am not a discount agent. I have 22 years of experience selling real estate in the Coachella Valley. I started in New Homes sitting on sites for a monthly pay check, and worked my way up to the resale market. My first year in resales, I grossed $32,000, which barely covered my expenses. Oh that..expenses! I carefully explain to my sellers that from the moment we agree to go on the market, my expenses begin..
- Hourly work on the computer and comparing community to community and house to house, and general research.
- All office equipment, computers, phones supplies and repairs are on me.
- Gas and mileage on my car
- Advertising expenses are on me. I employ a full time SEO person for my online presence, a computer specialist to help with computer issues at $120/hour), and then there are the ads. Online ads, print ads which I run to compliment my listings.
- Signs. Small ones aren’t too bad, but the large ones I use for Land and Equestrian and development properties can run up to $3,000 each. I pay for those.
- Supras run approx. $100 each and you need one for each house.
- Dues: $99/quarter and annually approx. #1200
- E & O Insurance. Generally supplemented by our brokers. $800-$1600/year.
- Health insurance as we are independent contractors, so have to pay for our own. No 401k retirement plans for us! The general rule is that when one year ends, a realtor needs to have approx. 1 year worth of expenses/salary still in the bank.
Realtors pay for most or ALL of their own marketing and business expenses BEFORE close!
And then after the property is sold, we aren’t done paying out. Every realtor working for a brokerage, pays their broker a “split”. New agents start at somewhere around 60% to them and 40% to their brokers. Experienced agents who are producers will still be paying 10-20% of each sale to their brokerages.
The moral of my story is this..yes, I will be happy to put the buy side commission onto my buyers. I will be able to either charge them hourly, or a % of the sale, if this new law goes through. I guess the thinking is that buyers can just go straight to sellers and buy their home. Great! If a buyer thinks they are up to finding, comparing, negotiating and then closing a deal and they don’t need help, go for it. But if I, as an agent, were to go to purchase a home in Newport Beach for example, I would happily pay a local professional to cut to the chase and find me a home to suit my taste. So, if the real estate world is going to change the commission structure payout, so be it! As long as the sellers and buyers understand how much and WHY there are fees involved, and there is full transparency let’s proceed!
