Unlike you, I almost always disagree with Greg. And this time is no different

How much depends on how good you are, but- It has to make sense and and be justifiable.

“If you want to argue a liability protection from having a buying agent you can probably get better protection by having a lawyer look over the contract.Even one who bills at $400/hr will save you money.”

Solid Point…

Buyers Agents should charge similar to the attorney or accountant hourly model:
Interview and asses the client and their needs.
Determine the amount of hours it should take to handle their situation.
Establish a retainer contract that agrees to pay the BA this cost POC.
If the scope of work obviously exceeds the retainer $$, start adding up the hours and charge appropriately.

My $.02

On the seller side it makes more sense – there are more marketing dollars being spent, open houses being held, broker previews, etc. A hard cash outlay in moving the property. I still think its dubious on the seller side (especially with the majority of RE agents touting “drama pricing” and usually “suggesting” you come off your price); but at least there’s a little more justification.

On the buyer side what was done to earn 3%? A couple of hours in a car showing a few houses? A few emails with the latest MLS listings pulled from the buyer’s desired zip codes? Completing the purchase contract? I mean there is not a lot here. If you want to argue the “buyer’s agents” protect buyers by negotiating a better price on the home fine; change the commission structure to compensation based on dollars negotiated off the intial listing price of the home.

If you want to argue a libality protection from having a buying agent you can probably get better protection by having a lawyer look over the contract. Even one who bills at $400/hr will save you money.

The value of a buyer’s agent is in telling you when you are wrong, when you are not taking all things into consideration in your purchase and when you are being your own worst enemy.

As for 3% being too much…at what price? 3% of $200,000 is not too much. 3% of $1,500,000 is too much. Saying 3% is too much makes no sense…3% of what?

In many senses, I totally agree with you, Jeff. I’m sure that doesn’t come as a huge surprise… we’re cut from the same kind of mold.

Since the informed buyer can negotiate a rebate with their buyer’s agent, I’ll stand firm on the benefit of ensuring a buyer is represented in my transactions. The benefit extends to the seller, as well, from a legal liability standpoint.

You might be pleased to know that for years I have offered a performance rebate to my buyer clients. If I didn’t save them X dollars on their transaction, I gave them X dollars at closing.

The purpose of this performance guarantee was to instill confidence in our efforts to procure properties at the lowest possible price, as we would put our money where our proverbial mouths are.

As always – it’s an interesting conversation at the XBroker!

It also amuses me, as you’ve quoted above, that information (public information!) such as sales comparables and property information is somehow proprietary and worth paying a premium. While there are experienced agents worth their weight in gold the VAST majority don’t ever come close to earning their 3%. It doesn’t take much to become a realtor – a couple hundred bucks and a license gets you there. Joining a club and having access to a website that compiles public information shouldn’t make you entitled to larger commissions.

The commoditization of our industry (RE/mortgage) is well underway and should be accepted by everyone; whether you belong to a monopoly or not.

As you said “evolve or die”.

I’m glad to see TheXBroker taking on the realty agent position that somehow the comoditization of the real estate industry shouldn’t apply to them. In his post Buyer Agents Beware he says: Look deeply- protecting the Listing is all about