Things must be slow for real estate agents

Buying & Selling Real Estate
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Things must be slow for real estate agents

Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes

I put my personal house up for sale on Zillow as a FSBO . The responses have been overwhelming . In 3 days I have had 65 calls . Two from regular people and 63 from real estate agents . They all seemed to be reading off the same script , telling me how great they were , how they could make things easy how selling a house is difficult without the assistance of a professional . Honestly the majority sounded like used car salesmen . This wasnt just local agents but they were from all corners of the state of Maryland . Funny how all of them has interested buyers looking for a house in my area .

After a while I just answered the phone by saying , " Oh wow another real estate agent how can I help you ? " 

I have been in business over 40 years as a contractor ,  never cold called , never knocked on a door . Always had more work than I could handle due to our reputation .  After the conversations I has with these agents ( I am not painting all agents )  they sounded like used car salesmen talking down to someone .  I wasnt impressed with 95% of them .

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Jack Seiden
Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 654 votes
2y
Quote from @Matthew Paul:

I put my personal house up for sale on Zillow as a FSBO . The responses have been overwhelming . In 3 days I have had 65 calls . Two from regular people and 63 from real estate agents . They all seemed to be reading off the same script , telling me how great they were , how they could make things easy how selling a house is difficult without the assistance of a professional . Honestly the majority sounded like used car salesmen . This wasnt just local agents but they were from all corners of the state of Maryland . Funny how all of them has interested buyers looking for a house in my area .

After a while I just answered the phone by saying , " Oh wow another real estate agent how can I help you ? " 

I have been in business over 40 years as a contractor ,  never cold called , never knocked on a door . Always had more work than I could handle due to our reputation .  After the conversations I has with these agents ( I am not painting all agents )  they sounded like used car salesmen talking down to someone .  I wasnt impressed with 95% of them .


 A lot of people don’t realize this, but in addition to real estate agents selling stuff, they are also being sold, every brokerage, every title company, even lenders, have courses on literally scripts, how to build out your social media, how to find fsbo listings etc, truth is none of these are effective, pretty much the only way to be a successful agent is either ton of ad spend or the hard work of meeting people in person through events meetups etc, but brokerages make money by head count, even title and lenders are happy if you close a few deals a year with them, so they sell this stuff to agents who than use those scripts on you, it’s a whole prymond scheme lol

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  • Jack Seiden
    Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 654 votes
    2y
    Quote from @Matthew Paul:

    I put my personal house up for sale on Zillow as a FSBO . The responses have been overwhelming . In 3 days I have had 65 calls . Two from regular people and 63 from real estate agents . They all seemed to be reading off the same script , telling me how great they were , how they could make things easy how selling a house is difficult without the assistance of a professional . Honestly the majority sounded like used car salesmen . This wasnt just local agents but they were from all corners of the state of Maryland . Funny how all of them has interested buyers looking for a house in my area .

    After a while I just answered the phone by saying , " Oh wow another real estate agent how can I help you ? " 

    I have been in business over 40 years as a contractor ,  never cold called , never knocked on a door . Always had more work than I could handle due to our reputation .  After the conversations I has with these agents ( I am not painting all agents )  they sounded like used car salesmen talking down to someone .  I wasnt impressed with 95% of them .


     A lot of people don’t realize this, but in addition to real estate agents selling stuff, they are also being sold, every brokerage, every title company, even lenders, have courses on literally scripts, how to build out your social media, how to find fsbo listings etc, truth is none of these are effective, pretty much the only way to be a successful agent is either ton of ad spend or the hard work of meeting people in person through events meetups etc, but brokerages make money by head count, even title and lenders are happy if you close a few deals a year with them, so they sell this stuff to agents who than use those scripts on you, it’s a whole prymond scheme lol

    7Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    @Jack Seiden That makes some sense out of it . 

    0Reply
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    2y

    @Matthew Paul my first broker required all new agents to be in the office cold calling FSBO, expired listings, and preferred farm area for several hours x times a week. It was awful. I didn't last there long and I've never cold-called since. But it's standard practice for many. Must work for them or they wouldn't keep doing it.

    2Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    @Lynn McGeein .@Jack Seiden  . fielded another bunch of calls today . All the same .  BUT there was a first , I had an agent show up at my house .I told her she was the first , and that I am impressed that someone is a hustler . I know who she is and she is a top producer in my area .  I basicly looked at her and said "  Its that bad isnt it , no inventory and agents are hurting "   She said , yes it is and we are losing agents right and left . 

    Then she looked at me and said " You are basicly a No BS guy , what will it take to get your listing . And I told her straight up I will do 2% , thats it split it how ever you want . You and I both know that the house will sell in a week once it hits the MLS , probably over asking .

    She said when do you want to list it ?  

    I told her she is my first call , and it will be about 2 weeks 

    4Reply
  • Jack Seiden
    Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 654 votes
    2y
    Quote from @Matthew Paul:

    @Lynn McGeein .@Jack Seiden  . fielded another bunch of calls today . All the same .  BUT there was a first , I had an agent show up at my house .I told her she was the first , and that I am impressed that someone is a hustler . I know who she is and she is a top producer in my area .  I basicly looked at her and said "  Its that bad isnt it , no inventory and agents are hurting "   She said , yes it is and we are losing agents right and left . 

    Then she looked at me and said " You are basicly a No BS guy , what will it take to get your listing . And I told her straight up I will do 2% , thats it split it how ever you want . You and I both know that the house will sell in a week once it hits the MLS , probably over asking .

    She said when do you want to list it ?  

    I told her she is my first call , and it will be about 2 weeks 


     2% is a risky strategy imo, if she takes 1% and gives 1% to the other agent your house might not get shown, that’s not right but it is the way the world works, don’t know if I’d chance it, might do 3% with her agreeing to give 2% to the other agent.

    0Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y
    Quote from @Jack Seiden:
    Quote from @Matthew Paul:

    @Lynn McGeein .@Jack Seiden  . fielded another bunch of calls today . All the same .  BUT there was a first , I had an agent show up at my house .I told her she was the first , and that I am impressed that someone is a hustler . I know who she is and she is a top producer in my area .  I basicly looked at her and said "  Its that bad isnt it , no inventory and agents are hurting "   She said , yes it is and we are losing agents right and left . 

    Then she looked at me and said " You are basicly a No BS guy , what will it take to get your listing . And I told her straight up I will do 2% , thats it split it how ever you want . You and I both know that the house will sell in a week once it hits the MLS , probably over asking .

    She said when do you want to list it ?  

    I told her she is my first call , and it will be about 2 weeks 


     2% is a risky strategy imo, if she takes 1% and gives 1% to the other agent your house might not get shown, that’s not right but it is the way the world works, don’t know if I’d chance it, might do 3% with her agreeing to give 2% to the other agent.


    Well its still $15K , not chump change . IMO . If she has a buyer in house or does dual agency , not bad for a weeks work . If they can squeeze some out of the buyer , better for them . Houses in my price range in Severna Park are few and sell quick . if I sell myself they get nothing . As long as I net what I want , I dont care . If it does go on the MLS I am sure it will get shown , people will tell their agent they want to see it . There are only 5 houses under $700K for sale in this zip code .

    3Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    2y

     I partly agree - I think many agents are clawing for anything they can get right now, 1% or 0.5% is better than 0%, right? 

    I mean this is a 500k house, if my math checks out. 1% is still 5k (especially if it's an easy sell). I don't know the market but that's still equivalent to almost 3% on a 200k house. I've always thought that the market in that 400-750k range gets screwed on commissions. Probably not doing a ton extra to sell that house but realtors were certainly reaping the rewards. 

    98% of the agents I had were nothing more than transaction facilitators - I used an agent for one deal - my first, that's it. As far as what most of them do - they set up a simple filter based on the info that you gave them, then you look and find houses that you like within the filtered range, contact them and let them know you want to see it, then they show you the house (based on their schedule around other clients). So the buyer is really finding the house anyway, they'll likely find FSBO (unless you have a crap realtor that filters those out, which wouldn't surprise me).

    As far as the OP - I know realtors are hurting where I'm at. I follow a couple brokers on social media and they are having these cold call days where they call everyone into the office and they literally cold call for hours on end. Then the next week they were doing it again. The DOM is up, inventory is up, sales price/list ratio is down about 6%- so it's got to be getting harder. This is good - let the market work without government intervention, and without the NAR withholding every detail about a house and essentially lobbying to maintain 90% of this career field

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Jack Seiden:
    Quote from @Matthew Paul:

    I put my personal house up for sale on Zillow as a FSBO . The responses have been overwhelming . In 3 days I have had 65 calls . Two from regular people and 63 from real estate agents . They all seemed to be reading off the same script , telling me how great they were , how they could make things easy how selling a house is difficult without the assistance of a professional . Honestly the majority sounded like used car salesmen . This wasnt just local agents but they were from all corners of the state of Maryland . Funny how all of them has interested buyers looking for a house in my area .

    After a while I just answered the phone by saying , " Oh wow another real estate agent how can I help you ? " 

    I have been in business over 40 years as a contractor ,  never cold called , never knocked on a door . Always had more work than I could handle due to our reputation .  After the conversations I has with these agents ( I am not painting all agents )  they sounded like used car salesmen talking down to someone .  I wasnt impressed with 95% of them .


     A lot of people don’t realize this, but in addition to real estate agents selling stuff, they are also being sold, every brokerage, every title company, even lenders, have courses on literally scripts, how to build out your social media, how to find fsbo listings etc, truth is none of these are effective, pretty much the only way to be a successful agent is either ton of ad spend or the hard work of meeting people in person through events meetups etc, but brokerages make money by head count, even title and lenders are happy if you close a few deals a year with them, so they sell this stuff to agents who than use those scripts on you, it’s a whole prymond scheme lol


     these are the reality these days, until next few years maybe even more slower due to "virtual tours" and such..

    1Reply
  • Jassem A.
    Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    2y

    My wife loses us money every year being a realtor but she likes to see her face on the placemat at the diner so I let it slide. Plenty of ways to make money in real estate but being a realtor is not one of the easy ways.

    5Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    @Matthew Paul I just FSBO'ed a house (currently wrapping up escrow)

    I also got the obligatory calls from agents...you could tell most of them were new/young agents. I took some calls but let most go to voicemail, I just don't have time for the same old sales pitch over and over.....

    Are you going to accept the 2% deal with the agent? Seems like the house will sell itself.....and escrow is pretty automatic nowadays.....

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Bruce Woodruff:

    @Matthew Paul I just FSBO'ed a house (currently wrapping up escrow)

    I also got the obligatory calls from agents...you could tell most of them were new/young agents. I took some calls but let most go to voicemail, I just don't have time for the same old sales pitch over and over.....

    Are you going to accept the 2% deal with the agent? Seems like the house will sell itself.....and escrow is pretty automatic nowadays.....


     where are you going to move Bruce ?
    hopefully not a CA city lol...

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Carlos Ptriawan:
    Quote from @Bruce Woodruff:

    @Matthew Paul I just FSBO'ed a house (currently wrapping up escrow)

    I also got the obligatory calls from agents...you could tell most of them were new/young agents. I took some calls but let most go to voicemail, I just don't have time for the same old sales pitch over and over.....

    Are you going to accept the 2% deal with the agent? Seems like the house will sell itself.....and escrow is pretty automatic nowadays.....


     where are you going to move Bruce ?
    hopefully not a CA city lol...


    I had already moved. Down to the Valley about an hour west of PHX.

    No, Lol, never back to Cali........are you kidding...?

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Bruce Woodruff:
    Quote from @Carlos Ptriawan:
    Quote from @Bruce Woodruff:

    @Matthew Paul I just FSBO'ed a house (currently wrapping up escrow)

    I also got the obligatory calls from agents...you could tell most of them were new/young agents. I took some calls but let most go to voicemail, I just don't have time for the same old sales pitch over and over.....

    Are you going to accept the 2% deal with the agent? Seems like the house will sell itself.....and escrow is pretty automatic nowadays.....


     where are you going to move Bruce ?
    hopefully not a CA city lol...


    I had already moved. Down to the Valley about an hour west of PHX.

    No, Lol, never back to Cali........are you kidding...?


     I like your answer Bruce ;-)

    0Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y
    Quote from @Bruce Woodruff:

    @Matthew Paul I just FSBO'ed a house (currently wrapping up escrow)

    I also got the obligatory calls from agents...you could tell most of them were new/young agents. I took some calls but let most go to voicemail, I just don't have time for the same old sales pitch over and over.....

    Are you going to accept the 2% deal with the agent? Seems like the house will sell itself.....and escrow is pretty automatic nowadays.....


     I am not pushing too hard  to sell right now , still finishing the house I am moving to . I may take her up , but dont know for sure right now 

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    2y

    Did you consider a straight pay for MLS?

    @jon Minerick offers the service in my area. I think it is like $500. Search for his posts as they also state what to beware of when buying a MLS spot.

    By the way I have never used Jon.  I am referring to him solely because I have seen his posts offering the service (so not a first hand recommendation but suspect he provides what he advertises).

    Good luck

    2Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y
    Quote from @Dan H.:

    Did you consider a straight pay for MLS?

    @jon Minerick offers the service in my area. I think it is like $500. Search for his posts as they also state what to beware of when buying a MLS spot.

    By the way I have never used Jon.  I am referring to him solely because I have seen his posts offering the service (so not a first hand recommendation but suspect he provides what he advertises).

    Good luck


     Thats on the list 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Dan H.:

    Did you consider a straight pay for MLS?

    @jon Minerick offers the service in my area. I think it is like $500. Search for his posts as they also state what to beware of when buying a MLS spot.

    By the way I have never used Jon.  I am referring to him solely because I have seen his posts offering the service (so not a first hand recommendation but suspect he provides what he advertises).

    Good luck

    I think that is HomeCoin. I've used them twice now. $95 flat fee for a basic listing. They also offer other services like yard signs and photography I used them in San Diego and Arizona, but I don't know if they are nationwide.....If not, I'm sure there are others.

    [Cautionary note for Newbies - This is not for everyone. Guys like Me, Matthew and Dan have a higher risk tolerance and more experience. Realtors exist for a reason and the good ones are worth their weight in gold]
    4Reply
  • Jonathan Minerick
    Real Estate Broker · San Diego, CA · Member since 2015 · 725 posts · 129 votes
    2y

    @Matthew Paul @Dan H. $95 for an MLS listing :)

    BP blog post on what to look for in a flat fee MLS listing here:

    https://www.biggerpockets.com/member-blogs/9561/66005-flat-f... 

    2Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    I now believe things are much slower for agents than I thought . First , there are only 3 houses for sale under $700K in my zip code  21146 . I am still getting 10 calls a day from agents , even as far away as 75 miles . They all are willing to be my savior . Tops in the industry . And all have buyers looking for a house in my neighborhood . 

    So I tell them good , bring your buyer by and I will kick in 1% for a full price cash non contingent contract .  Then the explanation of ALL the HARD work they have to do and they need at least 2 % . So I tell them then tell the person you represent , who hired you to pay you . You work for them not me .  1% of something is better than 3% of nothing . And if things are so great go show your buyer the other 3 houses for sale , especially the 1 on the main highway , or the other thats a foreclosure and needs a full renovation . 

    Sure I get it , Agents are in sales , and you have to get a deal to close . But I have had no less than 85 different agents try to get my listing .  Too many agents going for  too little inventory . This puts a seller in the driver seat . 

    When they ask "  Is this about the commission ? "   I tell them straight up , " Of course it is at 6% of $670k  thats close to 40 Grand . Sorry but thats not happening . You or any other agent isnt worth that , especially in a market with no inventory .   Yes its  about  money , you wouldnt be calling me if it wasnt would you ? 

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y

    there are more agent compare to inventory since few years ago. also i don't understand the logic of brokerage that keep want to add (newbie) RE agent.

    1Reply
  • Shervin Golgiri
    Real Estate Agent · Union city · Member since 2023 · 50 posts · 27 votes
    2y

    At the end of the day it's all about the Value you bring to the table.

    There are many great agents out there, that worth their weight in gold and I promise you they're not the ones who willing to list a house for 2%.

    a great agent can bring more traffic and more offers on table and smoth transaction. But yes I agree, it's a very tough career,  and that's why 83% of people who do become agent quit withing the first two years.

    0Reply
  • Matthew Paul
    OP
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y
    Quote from @Shervin Golgiri:

    At the end of the day it's all about the Value you bring to the table.

    There are many great agents out there, that worth their weight in gold and I promise you they're not the ones who willing to list a house for 2%.

    a great agent can bring more traffic and more offers on table and smoth transaction. But yes I agree, it's a very tough career,  and that's why 83% of people who do become agent quit withing the first two years.


     Thats exactly what they all say , that they bring " Value"  to the table . Well at the end of the day its all about the $$$ . The first time you hear it , it sounds great , when you hear it 80 times , its a BS  sales pitch . A sign of being desperate . 

    0Reply
  • Dan Marriggi
    Rental Property Investor · Scranton, Boston · Member since 2013 · 100 posts · 40 votes
    2y
    Sell it yourself - you seem smart.
    Get some professional photos.
    Good luck - let us know how it turns out.
    2Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y

    The residential brokerage industry is in transition right now; after numerous attempts the last 15 years by well financed - venture capital backed companies that attempted to "disrupt' the industry (ibuyers, Zillow, buyer's only agents, public access to MLS, flat fee MLS, discount brokers), we are still at basically the same place we were in 1975, i.e., 6% commission paid by seller.

    So, the next step is compliance with the settlement agreed; no offer on MLS of seller agent sharing points with buyer's agent. And this is supposed to usher in a brand new day - buyers paying their agent a negotiated fee to represent them. I don't see much change occurring, but hey, I could be wrong.

    The value of agency, as a whole, varies with market conditions in individual markets; varies with the condition, pricing and demand of an individual property; differs with the relative financial strength of the buyer.  The value of individual agents within this framework covers the spectrum from the relatively incompetent newcomer doing this as a partime hobby to the vastly experienced professional with a knack for negotiation and an ability to find a market for hard to sell properties. 

    Brokers may be unnecessary to some sellers in the current market; next year in a totally different market environment sellers may be begging brokers to list their properties.  You need to experience at least two complete market cycles to have a proper perspective. 

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 458 posts · 168 votes
    2y
    Quote from @Matthew Paul:

    I put my personal house up for sale on Zillow as a FSBO . The responses have been overwhelming . In 3 days I have had 65 calls . Two from regular people and 63 from real estate agents . They all seemed to be reading off the same script , telling me how great they were , how they could make things easy how selling a house is difficult without the assistance of a professional . Honestly the majority sounded like used car salesmen . This wasnt just local agents but they were from all corners of the state of Maryland . Funny how all of them has interested buyers looking for a house in my area .

    After a while I just answered the phone by saying , " Oh wow another real estate agent how can I help you ? " 

    I have been in business over 40 years as a contractor ,  never cold called , never knocked on a door . Always had more work than I could handle due to our reputation .  After the conversations I has with these agents ( I am not painting all agents )  they sounded like used car salesmen talking down to someone .  I wasnt impressed with 95% of them .


     Sadly this is the trend now. We get tons of these also. But props to them for legit cold calling investors. 90% of agents wouldn't go this far to get business. 

    [email protected]484-791-6200
    CORE Team | Realty ONE Group Supreme547 Reviews
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    1Reply
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