Not sure links allowed but search Real Estate Commissions under fire or 6% RE commissions?ÿ Following is copied from CNN today:
The case that could break the system
thanks and here is the link on cnn.?ÿ
https://www.cnn.com/2019/05/15/economy/real-estate-commissions/index.html
FWIW,?ÿ the justice department came after surveyors for price fixing maybe 40 years ago - and rightfully so.?ÿ ?ÿFast forward - look at todays?ÿ 'standard' closing statement and see which fees are 'fixed' - Who's next?
It is a legitimate claim that I have argued with Realtors about for like forever.
Example: Contact any Realtor to look for a home or other property and they are not just your agent. They are the middle man that is taking calls about the same property from many interested parties to buy the land and they negotiate among the possible buyers to get the best price and deal for themselves by way of a higher commission.
I would want to refuse to pay that person anything because they are working in the interests of the seller and get paid every time they sell the same property.
All property that is sold thru finance has a sticker price of whatever the appraiser decides and that is generally the limit of what any financial institution will lend.
Most real estate people ask the seller what they want, inflate that price, collect their 6% and keep as much of the overage as they can which make the 6% commission a drop in the bucket to what they actually receive for a sale.
Then they want the $300 dollar survey limit they have placed for a property survey.
0.02
This should be posted in business and legal issues IMHO
Real estate agents only represent the person paying them, and are required to disclose such. That person is always the seller, if it is a commission. (Seems strange, since the buyer is the one shelling out the cash.)
Andy, you may be right.?ÿ Will leave to Wendell's discretion
I paid 5% which is getting to be pretty standard.?ÿ They put in the listing how much a buyer's brokerage will get (usually 50% of the total commission).
No single Realtor ever gets 6%, they split it with their Brokerage.
The system screws over the sellers and the Realtors who do the vast bulk of the work.?ÿ There are so many of them, a single branch office of a major brokerage house has more Realtors than there are Land Surveyors in the regional area.
Our Realtor earned her fraction of the commissions we paid, wish I could just hire her, double her fee and I'd still save money.?ÿ The Disclosures alone make up a thick book of paperwork, it seemed a lot worse than the last time we did this 20 years ago.?ÿ It took 5 months to sell the place, mostly our fault because we were too slow to lower the price enough.?ÿ It's a tough way to make a living, I wouldn't want to do it.
I think the way the on-line?ÿ brokerages like Purple Bricks and Redfin work is?ÿtheir fee is 1% but they must offer the buyer's agent more because no buyer's agent would be interested in showing property with a half percent brokerage commission.?ÿ You really can't list your house at 1%, may as well go Fizbo because no agent is interested in working for peanuts.?ÿ Of course they don't make that clear in the slick TV ads, I bet it is at least 3-1/2 to 4%.
I personally am opposed to anything that chisels down one more well paying job.?ÿ Everyone loves to hate Realtors but a lot of them actually make a useful contribution and you may want hamburger flipper quality people selling your house but I sure don't.
Most owners expect to get the appraised value for the sale of their property.
Realtors ask you to lower the price so they can get the sale completed faster and many times the buyer is going to flip the property to someone they have in line for a higher price.
Never is the Realtor working for buyer or seller, they are working for the quickest and highest commission depending upon their money needs.
The real estate person is an agent for the seller, so has a legal responsibility to them. But little incentive to look out for the seller's interest and even less so for the buyer to whom they have no responsibility other than to avoid outright fraud.
Your mileage may vary depending on your State and its regulations. ?ÿCheck out the Kansas information in seller's agent, buyer's agent and transaction broker.
Brokerage Relationships in Real Estate Transactions Act
Duties of Seller's Agent, Buyer's Agent and Transaction Broker
The Kansas Brokerage Relationships in Real Estate Transactions Act (referred to as BRRETA II) became effective on October 1, 1997. The following summary describes a seller's agent, a buyer's agent, and a transaction broker.
STATEMENT OF REPRESENTATION
Do not assume that an agent is acting on your behalf, unless you have signed a contract with the agent's firm to represent you. If you have not entered into a written agency agreement, you are considered to be a customer rather than a client. As a customer, you represent yourself. Any information that you, the customer, disclose to the agent representing another party will be disclosed to that other party. Even though licensees may be representing other parties, they are obligated to treat you honestly, give you accurate information, and disclose all known adverse material facts.
SELLER'S AGENT
The seller's agent represents the seller only, so the buyer may be either unrepresented or represented by another agent.
The seller's agent is responsible for performing the following duties:
- promoting the interests of the seller with the utmost good faith, loyalty, and fidelity
- protecting the seller's confidences, unless disclosure is required
- presenting all offers in a timely manner
- advising the seller to obtain expert advice
- accounting for all money and property received
- disclosing to the seller all adverse material facts about the buyer that the agent knows
- disclosing to the buyer all adverse material facts actually known by the agent, including:
- environmental hazards affecting the property that are required to be disclosed
- the physical condition of the property
- any material defects in the property or in the title to the property
- any material limitation on the seller's ability to complete the contract
The seller's agent has no duty to:
- conduct an independent inspection of the property for the benefit of the buyer
- independently verify the accuracy or completeness of any statement by the seller or any qualified third party
BUYER'S AGENT
The buyer's agent represents the buyer only, so the seller may be either unrepresented or represented by another agent.
The buyer's agent is responsible for performing the following duties:
- promoting the interests of the buyer with the utmost good faith, loyalty, and fidelity
- protecting the buyer's confidences, unless disclosure is required
- presenting all offers in a timely manner
- advising the buyer to obtain expert advice
- accounting for all money and property received
- disclosing to the buyer all adverse material facts about the property that the agent knows
- disclosing to the seller all adverse material facts actually known by the agent, including all material facts concerning the buyer's financial ability to perform the terms of the transaction
The buyer's agent has no duty to:
- conduct an independent investigation of the buyer's financial condition for the benefit of the seller
- independently verify the accuracy or completeness of statements made by the buyer or any qualified third party
TRANSACTION BROKER
The transaction broker is not an agent for either party, so the transaction broker does not advocate the interests of either party.
The transaction broker is responsible for performing the following duties:
- exercising reasonable skill and care
- presenting all offers in a timely manner
- advising the parties regarding the transaction
- suggesting that the parties obtain expert advice
- accounting for all money and property received
- keeping the parties fully informed
- assisting the parties in closing the transaction
- disclosing to the buyer all adverse material facts actually known by the transaction broker, including:
- environmental hazards affecting the property that are required to be disclosed
- the physical condition of the property
- any material defects in the property or in the title to the property
- any material limitation on the seller's ability to complete the contract
- disclosing to the seller all adverse material facts actually known by the transaction broker, including all material facts concerning the buyer's financial ability to perform the terms of the transaction
The transaction broker protects the confidences of both parties.
If the transaction is the sale of one to four residential units or the sale of agricultural real estate, the following information shall not be disclosed by a transaction broker without the consent of all parties:
?ÿ
- that a buyer is willing to pay more than the purchase price offered for the property
- that a seller is willing to accept less than the asking price for the property
- what the motivating factors are for any party buying or selling the property
- that a seller or buyer will agree to financing terms other than those offered; or
- any information or personal confidences about a party to the transaction which might place the other party at an advantage over the party unless the disclosure is required by law or failure to disclose such information would constitute fraudulent misrepresentation.
If the transaction is the sale or lease of commercial property or residential property of more than four units, the transaction broker shall not disclose any information or personal confidences about a party to the transaction which might place the other party at an advantage unless failure to disclose such information would constitute fraudulent misrepresentation. The transaction broker may disclose the following information unless prohibited by the parties:
- that a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property
- that a seller or landlord is willing to accept less than the asking price or lease rate for the property
- what the motivating factors are for any party buying, selling or leasing the property; or
- that a seller, buyer, landlord or tenant will agree to financing terms other than those offered.
The transaction broker has no duty to:
- conduct an independent inspection of the property for the benefit of any party
- conduct an independent investigation of the buyer's financial condition
- independently verify the accuracy or completeness of statements made by the seller, buyer, or any qualified third party
Still trying to figure out why this is in the Playground category. LOL
Reading thru this again and the term "Leave to appear pro hac vice" and "$150 fee" lead me down the google trail.
Pro hac vice?ÿis a legal term for adding an attorney to a case in a jurisdiction in which he or she is not licensed to practice in such a way that the attorney does not commit unauthorized practice of law.
Now that would be a handy fee for a surveyor to enable when the occasion calls.
