Not a gift link because sadly I’m not subscribed, but does this mean we don’t need a RE agent to buy a house anymore!?
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Never did need one. Makes things easier, I will use one again if I buy again. It’s not a requirement, unless other states have laws mine doesn’t.
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Yeah, a good agent can be useful if there are snags, and they can be good project managers so you don’t have to DIY the whole thing.
That said, I don’t feel like the 2.5% or so commissions are often justified. Redfin will often sell your house for 1%, and we worked with Trelora in Colorado who had a flat rate of like $2500 maybe? I felt like that was pretty fair for what they did.
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Yeah seems to me on the buying side they’re somewhere between useless and way overpaid… most of their advice I’d consider similar to the type of things an insurance broker might comment about the riskiness of a policy.
On the selling side I think you get stuffed because to list it you need an agent to get you into whatever the listing system is? (clearly I haven’t sold a house before) although perhaps Redfin / Trelora help with that? We’ve been considering moving in the next 12-36 months so hopeful this will mean less transaction costs.
Yeah, Redfin and Trelora were full service. I was very happy with both, they did just as good of a job as any full priced shop. Would definitely recommend looking at these newer, less expensive shops when you sell.
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One thing I would watch out for is real estate agents not showing you a home they would not make a lot of commission on. This happens in the Toronto real estate market where high prices can mean quite the commission haul for agents.
Well, I hadn’t really heard of these new services so I might rescind that I’ll use a typical agent next time. I just was pretty sure I’m ill-equipped to handle everything myself, even if I like legal minutiae usually.
Huh. Guessing most realtors aren’t too happy with this. But then, most realtors never sell a house (except perhaps their own), either, it was a tough market to crack into.
When I bought my second house, I remember thinking, what am I even paying for here? (I know, the buyer doesn’t technically pay, but it’s all passed through to the buyer ultimately). All the photos are online, all the house information is publicly and readily available, we have neighborhood reports and all that at our fingertips, what do realtors do to justify that kind of paycheck nowadays?
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Here is a gifted link for the squad
My sister bought her house without going through an agent during the pandemic. She met the sellers at a lawyer’s office and signed everything there. Paid $500 instead of the usual 6% (half going to selling agent and half to buying agent)
I bought my house using a Redfin agent and seller also used Redfin. I got a couple thousand back at closing for using Redfin. But honestly I was checking the MLS listing everyday for new and upcoming listings everyday and found the house myself. I did use Redfin to tour like 20 homes though
Basically all realtors did for me was unlock the lockbox and let me into the home. I read all the disclosures myself and found all the homes I wanted to see on my own
Realtors are kinda like recruiters. Seems like a super easy job. I’ve always considered trying to get a job at DW Simpson or Ezra Penland but then I remember how I ignore any form of contact from them (unless they include pay info, which is really the only thing I care about)
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I do think realtors can add some value. Particularly for folks moving to a new area. They should (in theory, I’ve seen some really shitty realtors) know the area well. Schools, the vibe of the neighborhood, etc.
But it got sideways in 2020-2022 when prices shot up and homes were selling in days. I don’t need to pay someone $20k to sell my house, TYVM.
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Some of the homes in the article I linked were for sale by owner who did not need an agent in white hot Toronto, but they did offer the buyer’s agent a commission. The agents still refused to show the house cuz of the bro code.
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Oh, I got an anonymous letter from a realtor when we used one of the flat rate shops telling me that they would find ways to steer buyers away from my house. Absolutely a bro code here.
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Aaaaaaand this is why they are getting sued
Such a scummy move in their part
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Slap them with Sherman Anti-Trust.
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My thoughts exactly. At best they provide “comps”, which strike me as just poorly controlled for comparisons between two houses when I’m quite capable and willing to put the data together to do more apples to apples comparisons.
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