Real Estate Forums - View Single Post

ccubed · 12-30-2005, 06:26 PM

From what I understand there are new discount brokers willing to help buyers for a fee or percentage of the commission paid. The reason there is a market for this is because many people like myself who do all the leg work via the internet are not willing to hand over a negotiating tool to someone who basically is completing administrative type tasks. In comparison to the work I do and the pay I receive and compare that to a 3 % commission on a sale of a $500,000 house generating $15,000 to the buyer broker alone it just does not make sense anymore. For example, if I approach a friend who is a broker to assist me with a house I am ready to buy and all the broker needs to do is use his/her skills in assisting me in the negotiation utilizing maybe 2 hours a day for 3 days I certainly do not support paying this person $15,000 when I can obtain an attorney to assist for less than $1000 and achieve the same outcome and yet have more power to negotiate. At this point I already know what price I am willing to pay. Unfortunately there is really no more hidden secretive information anymore that is kept from the consumer/buyer, With a little resourcefulness any consumer can compile a list of comparative priced homes. That being said if I were a broker in the real estate market I would see this as an opportunity to be the first to start a company to fulfill this new need and not “miss the boat” by calling buyers greedy. It is not greedy it is economics and based on supply and demand. Those that do not conform will be left behind.

12-30-2005, 06:26 PM	#11 (permalink)
ccubed Status: Junior Real Estate Forum Member Join Date: Dec 2005 Posts: 1	kickback From what I understand there are new discount brokers willing to help buyers for a fee or percentage of the commission paid. The reason there is a market for this is because many people like myself who do all the leg work via the internet are not willing to hand over a negotiating tool to someone who basically is completing administrative type tasks. In comparison to the work I do and the pay I receive and compare that to a 3 % commission on a sale of a $500,000 house generating $15,000 to the buyer broker alone it just does not make sense anymore. For example, if I approach a friend who is a broker to assist me with a house I am ready to buy and all the broker needs to do is use his/her skills in assisting me in the negotiation utilizing maybe 2 hours a day for 3 days I certainly do not support paying this person $15,000 when I can obtain an attorney to assist for less than $1000 and achieve the same outcome and yet have more power to negotiate. At this point I already know what price I am willing to pay. Unfortunately there is really no more hidden secretive information anymore that is kept from the consumer/buyer, With a little resourcefulness any consumer can compile a list of comparative priced homes. That being said if I were a broker in the real estate market I would see this as an opportunity to be the first to start a company to fulfill this new need and not “miss the boat” by calling buyers greedy. It is not greedy it is economics and based on supply and demand. Those that do not conform will be left behind.