Real Estate Agent that offers incentives - Page 4 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Boblobla · 03-12-2009, 01:07 PM

How did I miss this thread? I am buying a new house soon. That is all.

troutman · 03-12-2009, 01:15 PM

Quote:

Originally Posted by JustAnotherGuy

Using my simplistic example again. The person who I am buying the house from is only getting $460,000 into their pocket. So where does the extra money go to? It goes to pay the real estate fees.

But you have an asset worth $480,000.

JustAnotherGuy · 03-12-2009, 01:19 PM

Quote:

Originally Posted by troutman

But you have an asset worth $480,000.

An asset worth $480,000 that I would have to pay somebody $20,000 to seel for me. So my net asset is only $460.000.

troutman · 03-12-2009, 01:20 PM

Quote:

Originally Posted by JustAnotherGuy

An asset worth $480,000 that I would have to pay somebody $20,000 to seel for me. So my net asset is only $460.000.

See Ken's post - he explained it better than me. You are not paying commissions twice.

JustAnotherGuy · 03-12-2009, 01:23 PM

Quote:

Originally Posted by ken0042

Then to turn it around like that, the guy who bought your house is the one who paid the first comission then.

Either way, as somebody buying and selling, you are only paying one comission. Yes, at some point along the transactions, $40K goes to realtors. But you don't lose $40K just by moving; just $20K.

Also, it's not like the seller can up the price to make the buyer pay the comission. If my house ill sell right now for $335K, I can't list it for $345K to make up for what the realtors make; because it won't sell for that higher amount.

I have a house that I sell for $500,000. I get $480,00 in my pocket. I buy another house for $480,000. I turn around and sell that house for $480,000. I get $460,000 into my pocket.

Where does all the money go? To the real estate agents. So, call it what you want. Fact is I am down by that amount.

troutman · 03-12-2009, 01:26 PM

Quote:

Originally Posted by JustAnotherGuy

I have a house that I sell for $500,000. I get $480,00 in my pocket. I buy another house for $480,000. I turn around and sell that house for $480,000. I get $460,000 into my pocket.

Where does all the money go? To the real estate agents. So, call it what you want. Fact is I am down by that amount.

Ok, you are talking about two sales. We didn't understand that.

You are not down anything if the realtor's services were valuable. Perhaps they make $ for you.

JustAnotherGuy · 03-12-2009, 01:32 PM

Quote:

Originally Posted by troutman

Ok, you are talking about two sales. We didn't understand that.

You are not down anything if the realtor's services were valuable. Perhaps they make $ for you.

In my opinion a realtor does provide value. When I do downsize I will be using a realtor on both sides of the equation. I will pay a fair amount for the services provided as well.

I will not be paying the full standard commission that is calculated based on the 7% of the first 100,000 + 3.5% for each additional 100,000 of value.

If said realtor tells me that I am not paying any commission when I buy a house I will ask him to leave. I am not going to deal with somebody who trys to play that game with me.

Winsor_Pilates · 03-12-2009, 01:39 PM

Quote:

Originally Posted by JustAnotherGuy

If said realtor tells me that I am not paying any commission when I buy a house I will ask him to leave. I am not going to deal with somebody who trys to play that game with me.

It's not a game, you're just twisting the numbers, or are very confused. If you bought that house without a realtor, would you be paying less?
In most cases no, so how are you paying for the selling (buyers) agent?

Your argument is like saying I bought a $1000 TV at Futureshop, but the sales person gets $50 commission, so I actually only get a $950 TV.

Winsor_Pilates · 03-12-2009, 01:43 PM

Quote:

Originally Posted by JustAnotherGuy

I have a house that I sell for $500,000. I get $480,00 in my pocket. I buy another house for $480,000. I turn around and sell that house for $480,000. I get $460,000 into my pocket.

Where does all the money go? To the real estate agents. So, call it what you want. Fact is I am down by that amount.

That's 3 transactions. 2 sales and 1 buy. In your example, you've paid commission twice. Where exactly are you paying when buying????

If you're argument made sense, you would have paid 3 commissions.

troutman · 03-12-2009, 01:51 PM

Quote:

Originally Posted by Winsor_Pilates

That's 3 transactions. 2 sales and 1 buy. In your example, you've paid commission twice. Where exactly are you paying when buying????

If you're argument made sense, you would have paid 3 commissions.

A similar argument is made in divorce cases - X keeps the house, and says to Y, we have to deduct for future real estate commissions in valuing the house. I always resisted this - there is no guarantee the house will be sold. Also, the commission should represent a value to the seller.

JustAnotherGuy · 03-12-2009, 02:03 PM

Quote:

Originally Posted by Winsor_Pilates

It's not a game, you're just twisting the numbers, or are very confused. If you bought that house without a realtor, would you be paying less?
In most cases no, so how are you paying for the selling (buyers) agent?

Your argument is like saying I bought a $1000 TV at Futureshop, but the sales person gets $50 commission, so I actually only get a $950 TV.

I buy a house from somebody for $500,000. How much money does that person put into their pocket?

This house was appraised at $500,000.

JustAnotherGuy · 03-12-2009, 02:11 PM

Quote:

Originally Posted by ruddstud

thanks but I am going to go with an agent who is going to list for $2000 flat fee as long as I pruchase through her...... everyone should bargain this!!!

So what are you going to end up paying the agent for the people who buy the house? There are typically two agents involved. Your agent will accept the $2000 flat fee. The other agent will probably not be so flexible.

Winsor_Pilates · 03-12-2009, 02:12 PM

Quote:

Originally Posted by JustAnotherGuy

I buy a house from somebody for $500,000. How much money does that person put into their pocket?

This house was appraised at $500,000.

1) Appraisal value does not reflect market value and is not even current, so it's irrelevant to the debate. Homes usually sell above appraisal value.

2) They put $480,000 in their pocket after paying off their expenses which includes realtor fees. No argument there, not sure what your point is.

Again, it's just like the Futureshop example. How much is FS putting in their pockets after they pay for their employee etc?
Would you say you are paying for those wages and getting a $950 TV?

JustAnotherGuy · 03-12-2009, 02:19 PM

Quote:

Originally Posted by Winsor_Pilates

1) Appraisal value does not reflect market value and is not even current, so it's irrelevant to the debate. Homes usually sell above appraisal value.

2) They put $480,000 in their pocket after paying off their expenses which includes realtor fees. No argument there, not sure what your point is.

Again, it's just like the Futureshop example. How much is FS putting in their pockets after they pay for their employee etc?
Would you say you are paying for those wages and getting a $950 TV?

That was my point. Thanks.

Winsor_Pilates · 03-12-2009, 02:23 PM

Quote:

Originally Posted by JustAnotherGuy

That was my point. Thanks.

So, you're point was that the seller pays a fee from their profits by using a realtor?

It sure seemed like you were arguing that the buyer is paying for those commissions. I guess you've figured it out now, glad I could help.

JustAnotherGuy · 03-12-2009, 02:29 PM

Quote:

Originally Posted by Winsor_Pilates

So, you're point was that the seller pays a fee from their profits by using a realtor?

It sure seemed like you were arguing that the buyer is paying for those commissions. I guess you've figured it out now, glad I could help.

Exactly

Oh well, let the people continue to be fooled.

Oh, and yes. The value of the TV is $950.00. And if the store paid only $25 commission. I would have had to pay $975.00. But then I didn't buy the TV for $1000, because I went to BestBuy and bought it for $975.00 because they pay a lower commision. I am happy. I wonder if the guy who is waiting for the $50 in commision is happy too?

Winsor_Pilates · 03-12-2009, 02:38 PM

Quote:

Originally Posted by JustAnotherGuy

Exactly

Oh well, let the people continue to be fooled.

It's pretty clear who's trying to do the fooling. I've responded to everything you've written, and you've largely ignored almost everything I've wrote because you have no rebuttal.

You still haven't demonstrated in anyway how the buyer is paying the commissions. Nor have you made sense of your own example, in which you paid 2 commissions for 3 transactions.

Perhaps all of the people being "fooled" just have the comprehension to figure it out?

Anyway, I've said enough on the topic. At this point I feel like I'm arguing that the planet is round, and it's not worth continuing to try and convince you otherwise.

ken0042 · 03-12-2009, 02:39 PM

That analogy is flawed- if BestBuy will sell it for $975 then FS will price match for $971.

Bottom line, the TV retails for $1000. Let's not talk about what you might be able to negotiate because that is quite a variable.

Going back a few posts, you talk about continually selling houses and buying others. Yes, you would keep losing money if you continually did that. Which is why people don't do that; unless they are making improvements along the way to offset the costs of selling.

JustAnotherGuy · 03-12-2009, 02:49 PM

Quote:

Originally Posted by Winsor_Pilates

It's pretty clear who's trying to do the fooling. I've responded to everything you've written, and you've largely ignored almost everything I've wrote because you have no rebuttal.

You still haven't demonstrated in anyway how the buyer is paying the commissions. Nor have you made sense of your own example, in which you paid 2 commissions for 3 transactions.

Perhaps all of the people being "fooled" just have the comprehension to figure it out?

Anyway, I've said enough on the topic. At this point I feel like I'm arguing that the planet is round, and it's not worth continuing to try and convince you otherwise.

Simply put. If the real estate agent would take less commision then I would pay less for the house and the owner would have the same amount of money in their pocket.

(In this case the owner would put half the money in their pocket and I would pay less by half of the commision)

That is what I am saying. You can ignore what I am saying and come up with some weird twist and say that I am not paying a commision. But I am.

Carry on. If you are a real estate agent. Please please. stay away from me. thanks.

JustAnotherGuy · 03-12-2009, 02:50 PM

Quote:

Originally Posted by ken0042

That analogy is flawed- if BestBuy will sell it for $975 then FS will price match for $971.

Bottom line, the TV retails for $1000. Let's not talk about what you might be able to negotiate because that is quite a variable.

Going back a few posts, you talk about continually selling houses and buying others. Yes, you would keep losing money if you continually did that. Which is why people don't do that; unless they are making improvements along the way to offset the costs of selling.

I was using the example of buying and selling houses to show that the real estate commission will continually suck out money from every transaction.