Realtors, especially those blowhard "power closers" and "mega-producers", so full of themselves as they generally are, claim they're worth their 6% because homes sold by a real estate clerk sell for more than FSBO homes, because of their smarts, their good looks, their hustle, their "local knowledge", whatever they can spew to convince you of their worth.
And I don't disagree with the fact that homes sell for more using a real estate clerk - I'd bet on it that homes sold by real estate clerks sell for more (before you subtract their 6%).
And I don't disagree with the fact that homes sell for more using a real estate clerk - I'd bet on it that homes sold by real estate clerks sell for more (before you subtract their 6%).
Why?
It's called "restraint of trade". It's called the MLS monopoly.
If you try to sell your home in today's anti-capitalistic NAR/MLS world, buyers can't find sellers easily unless the home is on the local central database, the MLS.
But what happens when a new, improved, more efficient, nationwide, agnostic "MLS" finally comes to fruition (hello google! cleanup on aisle 3!)?
You got it - real estate clerks go away, FSBO homes sell for just as much if not more than realtor sold homes, and the days of 6% go away, big time.
Yes, craigslist, ebay, gumtree, fsbo.com, zillow and the likes are helping defeat the evil NAR/MLS. But we need a dominant and free central database. Google is it. And watch them buy zillow soon.
Until then, if you're going to sell your home, find a way to get it onto the MLS for the lowest possible cost, and be done with it. And tell real estate clerks that try to convince you otherwise that their days are numbered, they're being disintermediated, and they can stick their 6% where the sun don't shine.
Until then, if you're going to sell your home, find a way to get it onto the MLS for the lowest possible cost, and be done with it. And tell real estate clerks that try to convince you otherwise that their days are numbered, they're being disintermediated, and they can stick their 6% where the sun don't shine.
22 comments:
Certain regions that I am researching on CL I have found that there are a large number of realtors selling their own homes on CL as a FSBO. I can only assume that they are doing two things.
1. hiding inventory by keeping it off the MLS so that there doesn't appear to be a glut...like we don't know all the builders have hoards of "unlisted" yet unsold houses and condos.
2. They are trying to beat all the consumers to the "spring rush" so that they can dump their houses before the big crash. I'm seeing it on LOTS of "real estate clerk" (I like your term, but "house pimp" may be even more appropriate) blogs.
If you read the real estate blogs it becomes very apparant very quickly where they make contradictory statements and even come out and accidentally say some VERY incriminating things as far as I am concerned. I think that you are right when you refer to their low level of intelligence so they really don't even realize it how they are setting themselves up and spoonfeeding and group that may hopefully be investigating them and can see the truth through all the "noise" that they pump on their site.
They are all preaching ethics. They are even starting to point fingers and play the blame game. It's all the *unethical lenders they say. Yet when they speak out of the other side of their mouths they support selling the same junk loans and say things like "Who am I to tell the consumer what they should or shouldn't buy" and "I don't put a gun to their head"
You guys are like gun dealers waiting outside of psychiatric wards selling handguns to people who are suicidal, aren't thinking rationally and very succeptible to manipulation.
But when they kill themselves you scum in the industry will just say "I didn't put the gun to their head" and feel completely absolved.
The sad thing is, that is NOT anti-capitalistic.
If you look at the history of capitalism over the past 100+ years, you'll see that maintaining a monopoly at all costs is the name of the game.
I just read this months Readers Digest article on this corruption. Basically the NAR and it's agents are severly blackballing, threatening and "hurting," any and all sellers and/or buyers who don't comply with their Mafia style corrupt tactics on the real estate market.
This article is very scary because these thugs are backed by politicians who, of course have something to gain.
This is real monopolization and thuggery and if you initially believe that the real estate world is a fair market where, of course, any player is trying to get the best deal and money, think again.
This is criminal and even violent.
They are that bad and dangerous.
It is just a matter of time before a new database will occur.I think it will be within the next 3 years.Google is probably our best hope.Zillow is ok but still needs work.I can't wait for the day we are free from realtors grasp. Just as I am waiting for the day we are free from oil companies.
That's from Sep 2005. Are there any updates on this case?
There is something good and clean and honest about dealing directly with an owner when buying or a prospective buyer when selling.
I buy and sell motorcycles all the time. Time and time again, people buy from me because I can tell them what is what. There is no I dunno this or that. People ask me how to fix if that happens, and I dont hesitate to show them. I take a whole day sometimes to educate people about a $1000 motorcycle. I'd say what was done to it, and what is a change from original and what to never do and when to call me.
The result.
People leave my house with a bike they know they can take care of, and I hear from them again only to say how good they are feeling having bought it. Now of course it helps that I sell for at or right about market $$$ instead of ripping people off like a dealer, or short changing them without the education like everyone else.
Only way to go. Face to face with the seller and buyer.
Of course some of the "flipper" investors are more than likely such snakes that you'd never want to meet them ... so there goes that idea ...
Cool.
Cow_tipping.
A ALWAYS
B BEEN
C Corrupt
Keif,
A couple of weeks ago you posted a challenge to call properties for sale and present a low ball offer, on my way to work I noticed a sign that said “ 2 family house for sale by Owner”, I called the number on the sign and a lady picked up the phone and began telling me how her and her husband have painted and updated the house and that its in really good shape (it appeared to have a paint job on the outside but over all, old crappy house built around 80 years ago). I explained that this would not be for myself but was interested in it as an investment property and was wondering if the utilities were separated
(Elec meter etc.) the answer was No. but she kept emphasizing how clean the property is.
And I kept on explaining that I’m mostly interested in the numbers.
The potential income did not even cover a 6% 30 year fixed principle and interest.(let alone Tax ,Insurance, Maint. Etc.)
Well she explained that she is a RE agent for a local Realtor and this would be perfect for someone to live in and rent out part of the house to help out with the mortgage.
I asked her how come she’s not listing the property with the realtor, she said that if she is not able to sell by herself that she would eventually list it with them.
So I gave her my number and asked her to call me back if she can make it profitable.
(drop the price so there can be positive cash flow)
I do not trust one word a RE agent says they are all liars.
I think that Realtors (real estate clerks) are really identical to used car salesman.
Both profit from misleading you, and misrepresenting the product.
Both are only "agents" in the transaction, and their "cut" is in proportion to how much they are able to take advantage of you.
There is nothing in either of these businesses that inherently causes them to be corrupt-It's just what they've developed into.
The more complicated the transaction is for the average consumer ( and the more it can be complicated), the greater the potential to "stick it" to the unwitting buyer.
If I could have one wish, as regards the "new economy" and the internet as a part of that, I would wish that occupations like this would be largely eliminated, or made unprofitable for the most part.
Btw, any used car salesman can become a realtor, and vice versa. The skills are completely transferable. Just a sleazy salesperson/clerk working under a mafia-like business plan.
Also, to the pathetic "blowfly": the very fact that your posts are all practically identical, and contain no attempt at even making any kind of argument, is evidence enough that you are pathological.
I sold my PHX shitbox with a RE Clerk. Had the house listed with his stupid ass for 3 months no movement. Fired hi%s ass dropped the price 3% and it sold it 2 days FSBO. Still 3% more in my pocket.
FU RE CLERKS OF AMERICA
MLS is a database that costs money to setup and maintain. Why should it be free to everyone?
Why would anyone give up the thing that allows them to operate effectively?
12:08,
You missed out #3 and probably the most obvious - they don't want to pay 3% to a buyer's agent. Instead they lower the price by 3% and end up at the same place yet have an easier time selling for 3% lower asking price.
Relax, not everything is a conspiracy people. Although it sure is fun reading your ridiculous conspiracy theories.
Oh look out, there's a black helicopter about to land on top of your apartment building, better take cover!!
Any local MLS worth its weight in gold already mirrors itself on Realtor.com or homeseekers.com.
There is no monopoly Keith, the information is readily available out there for everyone. That is, of course, one of the real reasons why you have this exorbitant pricing nationwide - the instant information is already readily available - the barrier to entry for buying is non-existent.
9:24
hi...I'm 12:08
to me conspiracy theories are a little more than realtors knowing what the game is and working it to their advantage.
However...many realtors are pretty dumb.
I'd like to use the term uneducated but that would be giving them the benefit of the doubt. They all consider themselves "Educated" They apply more "worth" to their lengthy list of credentials than a Boy Scout would apply to his badges.
However...when those lists of "credentials" include now defunct diploma mills...it just goes to show how DUMB they are. They aren't even aware of the fact that their bogus degree has already been publicly exposed and shut down.
And they do talk to much.
I could join in some of their blogs...sure...but I want to let them keep shooting themselves in the foot. I am watching closely with a grim sense of satisfaction.
JT.
I just did a little test.
I searched a local Seattle Realtors website for all the active Single Family Home and Condo Listings for King County, WA.
Urbanlivingseattle.com. has the number at 7873
Realtor.com has the number at 6026
That is a pretty large discrepancy.
Can you explain why I'm not seeing the same figures?
Homer Sexual said...
MLS is a database that costs money to setup and maintain. Why should it be free to everyone? Why would anyone give up the thing that allows them to operate effectively?
You're asking the wrong group. You see everyone here is a communist. They don't believe in free markets and most definitely don't believe in profits. So of course in their minds it should be free to one and all.
Nobody is allowed to profit in Keith's world. Not builders, not mortgage brokers, not realtors, not banks, nobody. Everyone should have a home built for free and given out as a gift.
I wish Keith would just admit he is a communist and stop this charade of his.
@ greedkills
I can't speak for seattle.
I know in Southern California, most notably orange county, la county, newport beach, san bernardino, and riverside, as well as san diego county they all have their own MLS' (CLAW, Socalmls, imrmls, orange coast MLS, etc..) - they all automatically double posts a listing on realtor.com and homeseekers.com as well as other places.
Think about it, as a selling tool, wouldn't you want to market your house for sale to as many places as possible?
Keith's point of "illegal restraint of trade" is coming from a point of ignorance. Sorry.
@greedkills
I would also suspect that your urbanlivingseattle.com has a lot of dead inventory.
Realtor.com has been known to be a victim of this.
You find a house you like, you call it up off of realtor.com and you quickly find out that the house already sold a long time ago.
No...sorry...no stale inventory there...I can't buy that one.
I actually follow the Seattle condo market on a daily basis...I use multiple sites. I see where there are only 6 -12 units listed by a builder on a building that in reality is only 20% sold.
I understand that the "old" trick was to leave up the *nice* sold houses basically as a bait and switch tactic.
That's not happening now. They are hiding the true size of the inventory and it becomes painfully obvious over time.
I research this daily...it's my job.
60 hours a week probably...I follow buildings/blogs/you name it.
I take a ton of notes...the realtors that are too dumb to copyright their blogs...I print out hardcopies.
Amen , Im in Australia and over here there is no MLS just two major websites which basically refuse to let any FSBO websites join or pay for their service. They say they dont want to bite the hand that feeds them. I went through all the tape and at the end of the day even if I had a licensed real estate ageent working for me domain.com.au and realestate.com.au would not allow me to bu/purchase their services.
So I hope FSBO or for sale by owner website can take off, or I agree their is a need for an opensource directory or central listing service . rupert Murdoch and packer two peopl contorl all the media in Austrlalia
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