I am a Realtor who owns a Beekeeping and Christmas Light business on the side. Doesn't matter if it's a $180k real estate commission or a $10 jar of honey...people always say others are overpaid.
The only time I agree about an agent overpaid is when the agent takes photos of a home/condo with their potato cell camera, uploads on MLS and just sits back and wait for multiple offers to roll in. And it still sells for overasking because the market is HOT. looking at you Toronto, ON agents.
I'm not sure how it works in all states, but in California using a Realtor (backed by the state Association of Realtors) means buyers/sellers have access to amazing real estate lawyers and advisors. When people ask if a Realtor is overpaid, I ask 'how much would you pay for legal protection and advice on a business deal valued at $428k?'... At the end of the day buying a home is a business deal, legal advisors and protections are worth it's weight in gold!
The answer is yes!! I’ve used an agent twice and with each sale, the agent only posted the listing on the MLS and (maybe) made up flyers. When I did a FSBO, I did the exact same thing and put my home all over my local social media for less 1/4 the cost of using an agent. I did pay the buyer’s agent a fee, but they did NOTHING. I will consider the fee as not TOTALLY RIDICULOUS when buyer’s agents can charge an hourly rate to show homes to prospective buyers. Less time would be wasted and all the fees wouldn’t be dumped on the seller.
Why should an agent get 6% of my hard-earned escrow? Better yet, Why should an agent get 24K on a 400K house versus 60K on a 1 million dollar house? What exact paperwork is different? Does it take an extra week to do the paperwork? There is no difference in the amount of time and paperwork that has to be done. So why shouldn't there be a flat fee to sell a house? It is complete BS that more money is paid out just because the selling price is higher. It's a massive scam that needs to end.
wow 6% , was talking to an agent and he wanted me to pay him for the promotion and 3% of the sale price , that was over 150k commission :) I told him i pay only on sale because i`am tired of exclusive representation with no results.
I love this saying Success is like being pregnant everybody congratulate you, but nobody knows how many times have been fucked Never apologise for your success
Great video/explanation, of a myth I felt but didn't understand. I sell commercial construction, the sales funnel on a big boy can take 2 years, but then the commissions are huge when they finally land. A one minute phone call which lands £5-figures always seems easy, until everyone else is able to compete for it too, and you have to dial 1000s of dials to land one which goes all the way through. There's no easy gig in the real world (unless yo' literally doing crime, or something immoral/loopholey)
All professionals can be overpaid. I’ve seen a plumber charge me $1500 for a twenty minute install with some basic hand tools and a $300 part. Customers want to think the value is there. If a real estate agent has a really easy sale then yes 6% seems high. At the same time they have far more instances where they do plenty of work and get paid nothing.
Love this video Ryan!! I really like the perspective you put on things!! I 100% agree with you and I feel like the value you can show to your clients means they are willing to pay what ever you charge! the key for any agent is the ability to show why you are worth what you charge! Thanks Ryan for always putting out great content!
Answer is Yes. In the age of the internet, you don’t need an agent to help you buy/sell. It’s kind of crazy that it still exists as a profession. Imagine needing an agent to buy a car or sofa. Totally unnecessary
You still need them because you are not buying a sofa or car. There could be so many legal problems that could arise after the sale because someone didn't disclose something or failed to do something. The good thing is that we have options so you to sell direct or use a professional.
The answer is 100% YES! They are overpaid. My landlady put our house up for sale and I'm the one that sold it while the realtor just sat on her ass. I didn't even get a f'n commission for God sakes. When they told us they got an offer... I know exactly who it came from and they were surprised that I knew the person and time they came through the house.
If it was so easy why did you hire an agent? Did you & can you do all the paperwork? (correctly), Did you set it up with the Title Company? Did you Negotiate on your own behalf? I can go on and on and on. Either your agent is really bad like you said, or they are really good and they did all the heavy lifting without you having to think or lift a finger. Perspective is everything. Stop just labeling industries as "easy" & "overpaid" bc if it was so easy and if so many people in that profession are "oVeRpAiD" then why doesn't everyone do it? have you ever asked your self that question? Instead of hating?
They are only useful in 3 scenarios. 1) You are a big time developer and are looking for a partner to find you the best properties 2) You are buying or selling very high end properties that have a tiny buyer pool or 3) Agents that find quality off market property deals. For the regular Joe’s, agents will just spam you email with the same stuff you see on Zillow and come to closing ready for the picture and commission check. Best approach as a buyer is to work with the sellers agent. These agents will do anything for a deal (including screwing over their own client) to close and get that sweet sweet double commission check
Sounds like you’re still working with an agent whether you choose to have representation or not. Trust me, the listing agents loyalty doesn’t lay with you. They’re going to do everything to benefit the seller in that scenario.
Yep no real way to get around working with at least one agent these days. Make no mistake, the only loyalty an agent has is with their own bank account… anything to close a deal quickly
Yes- any "profession" with close to zero barrier to entry and getting paid insane money for doing nothing. Something like 98% of all homes are sold because they are on the MLS.
Would you rather the plumber have taken 20 hours and charged you by the hour 😂 realtors are parasitic by nature and they want to make a lot of money for doing the least amount of work as possible, and they succeed at it.
with no guarantee of income, it's perfectly understandable for commission based jobs to have risk related perks. but the same amount of work if not more is required on a 400k coop as there is on a 4mm coop. but the money is 10x. and THAT is where one could argue the commission(s) are egregiously 'overpaid'. no need for a huge team or lux office in Soho to clear that transaction. the ubiquity of information, mls / streeteasy, etc... the work isn't all that strenuous. stressful sure, but ultimately simple and then paperwork with application and attorneys. obviously there's lots of competition vying for that money in a building or nabe where many units trade within the typical 6 mo listing period. last, the NAR lets way too many people in. should be way more difficult to get a license, and maybe the profession would be perceived as more prestigious and less snake oil / salesy.
The public only looks at the commission and not the business as a whole. They forget about expenses and have no idea what our costs are. "Just sell 3 homes a year and you have 100k? Easy."
As a real estate agent I appreciate this video! I personally put a lot of money into marketing, photography, gas for travel, hosting open houses etc. It takes money to make money folks!
I'm 48yrs old living in Montreal. I believe my retirement is quite close and I'll if things go according to plan. Bought my first house last month and I would say I'm a lot happier than you think. I'm glad I made certain good decisions that turned things around.
I think 2023 is going to be a better year if people know how and where to channel their energy for financial benefits. I don't know who agrees with me but crypto or real estate is a good way to make things happen.
I just got my real estate License, passed my state test on the first try a few days ago. I think I'll sign on with Intero maybe Keller-wiliams but most likely Intero and begin work in a couple days in the Peninsula here in the San Francisco Bay Area. I think I'll give a ago at finding a buyer for that pink mansion with all the different designer rooms that's been sitting for a couple of years that Enes Yilmazer toured 2 years ago and Ryan as well just recently.
The average fee for selling your home in the UK is 1.4%, with only 10% of that typically going to the agent as commission. The US fees seem unbelievable to me, so so high. Surely that can't be sustained?
It's only worth it when you have a knowledgeable agent. A good listing agent will trap buyers into being stuck in the contract to get the house sold and will know which offer is best. A good buyers agent will be able to get a buyer's offer accepted and know how to get them out of a contract if they decide to back out while protecting their earnest money. The fact that anyone can be an agent and start practicing without any guidance is scary.
No job is easy, real estate and mortgage agents required to know a lot of regulations, not to mention the people skills you need either have or develop, is a sales job which the U.S. is very good at producing lol however if we look at it from a numbers point of view, both jobs are expensive for the buyer and seller, brokerages are not exactly needed anymore, let’s be honest the over head cost is just not worth it. AI among other techs coming up can take over the job of both agents, and most likely be more efficient, better with regulations, there will be no bias like some agents to have and thats normal their human, but in terms of efficiency and cost, AI and bots will be much better.
I like it these videos, but It’s really distracting when they speed up his talking during the editing process. It almost sounds robotic after a while because of awkward points in his voice inflection.
Ultimately handling somebody else's stress is not getting over paid. Real estate professionals negotiate and absorb lot of the drama behind the scenes, to make sure that there will be no surprises after the closing and that everyone covers all their legal responsibilities. People pay a lot because their house is important and one of the biggest purchase they due in in their lifetime.That's is why they don't mind paying a professional to assist them in the transaction. Of course there's always choices and you could choose not to hire anyone.
That would be the smart choice seeing as realtors are clearly overpaid for the knowledge and effort they provide, it would be wise to learn how to barter yourself and handle your own shit
I find the market will dictate the price of a service. And if you want to charge above the market rate, then you run the risk of being taken to the professional body ombudsman/regulator/commissioner for overcharging.
Interesting timing of this video... Just recently there was a bill proposed in isreali govt to limit agent's commission to a fixed amount regardless the size of the deal. The bill was shut down for now
The sound is terrible on this video. Somebody is slacking. Discipline the person in charge of sound and the person who green lit this video to be uploaded with the bad sound, no office snacks for a week.
From what I see in your very entertaining shows and real life, you work so very hard for your money. These beautiful tv shows we see are also not the normal. Also i would expect you work largely when other people don’t. They can only work at homes when they are not at work. I’d think it would be a hard high stress industry. Anyway I’m thankful for all the entertainment you and those wonderful tv shows bring us. I wish you nothing but the very best.
this applies to alot of personal businesses, and after a while, when people get more successful, they don't trade their time for the work, but rather use their skills and experience. and cause that saves alot of time and energy, of course the income is more premium.
And must intelligent people don’t do that. There are many great FSBO resources out there. I sold my home myself and did a better job than the two agents I used on my prior two homes. In my area, homes can average $300k. You are telling me that they earn $18k? 😂😂😂😂😂
??Go to a doctor right out of school and get surgery , maybe it will be cheap, but you will not be able to walk for a long time or you can wait and go to the best surgeon and you -would be able to walk , ???? I’m not sure if I understand where you’re going with that one lol
someone that’s been involved in marketing branding graphic designer website for over 20 years and I’ve worked with a lot of real estate agents and bringing them selves. That’s completely not true. Good real estate agents pay money on marketing their clients. The ones that don’t are usually not good real estate agent. It’s just like anything else but I can completely understand why there is a perception completely missed sense
100% of his perspective is from the Realtor side- Its all about the "Realtors getting paid" As a consumer, 5-6% is absolutely ridiculous... What an egotistic, self-serving video. You have a glut of realtors showing up in jeans and t-shirts looking unprofessional, knowing nothing about the home, not there to serve in any way except- "How can I get paid" Serhant just proved it. He never mentioned how the 5-6% is worth it to the seller in any way...
you simps , yes he is overpaid if he is on the sellers side, if one is a buyers agent then not if your showing tons of houses to get your client to buy
OpenDoor and Zillow did that and proved to be an absolute disaster. Buying/selling a home involves so much more than agreeing on a price. Good luck having AI completely take that over
Redfin was supposed to that, they failed. People still want a real estate agent for the same reason nobody wants to talk to an automated voice when calling customer service.
