Who REALLY pays for the REALTOR Commission… Are Real Estate Commissions Really 10% - 12% ?
The home seller? The home buyer? The wholesale lenders? If you ask the home seller he / she will say them because it’s paid out directly from their net proceeds on the HUD 1 statement as a deduction. This is why many are looking at alternative routes, like for sale by owner or ala carte / discount services.
Others argue that the home buyer is paying the real estate commissions (but they don’t know it)… by financing it into the sales price of the home which is often artificially raised by most home sellers to cover the cost of using an agent?
Are today’s real estate commission really 10-12%?
If the seller pays it and the buyer finances it… can they be 10 – 12%. Value is based on comparable sales and most comparable sales are based on homes sold with a REALTOR, are most property values based on comparable sales artificially pumped up to cover these costs?
Real changes in real estate coming?
Mortgage lenders regularly cut sales prices on transactions… but what if they cut them 5% - 7% (the typical real estate commission) as a way to hedge a slowing real estate market and troubled loans? As property value is not an exact science and any appraiser can selectively make the value come in 3% to 5% higher using creative adjustments. Mortgage lenders are the ones that can truly change the industry overnight.
What if the “buyers agent” real estate commission was indicated as a "closing cost" on the buyers closing HUD 1 statement as I suggested on a previous blog post? After all, real estate agents argue that it's important to pay for the best representation which justifies their costs, but in the current real estate system buyers don't view the buyers agent as a "cost"... why not? If they did, would buyers still use an agent?
REALTORS, Mortgage Lenders, Buyers and Sellers… what do you think?
Others argue that the home buyer is paying the real estate commissions (but they don’t know it)… by financing it into the sales price of the home which is often artificially raised by most home sellers to cover the cost of using an agent?
Are today’s real estate commission really 10-12%?
If the seller pays it and the buyer finances it… can they be 10 – 12%. Value is based on comparable sales and most comparable sales are based on homes sold with a REALTOR, are most property values based on comparable sales artificially pumped up to cover these costs?
Real changes in real estate coming?
Mortgage lenders regularly cut sales prices on transactions… but what if they cut them 5% - 7% (the typical real estate commission) as a way to hedge a slowing real estate market and troubled loans? As property value is not an exact science and any appraiser can selectively make the value come in 3% to 5% higher using creative adjustments. Mortgage lenders are the ones that can truly change the industry overnight.
What if the “buyers agent” real estate commission was indicated as a "closing cost" on the buyers closing HUD 1 statement as I suggested on a previous blog post? After all, real estate agents argue that it's important to pay for the best representation which justifies their costs, but in the current real estate system buyers don't view the buyers agent as a "cost"... why not? If they did, would buyers still use an agent?
REALTORS, Mortgage Lenders, Buyers and Sellers… what do you think?
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home