Quote from @Mike Adams:
@Jason V., you're nuts dude. On a 100k transaction, would you work for $500 bucks before brokerage split AND taxes?
This mindset is based on old systems, ways of thinking. For example -- tax preparation. H&R Block was lobbying to keep free tax prep services out of the DIRECT hands of taxpayers. Now, you can e-file both federal and state tax returns online with multiple places for a flat rate fee of ZERO DOLLARS!
I think the well is gonna dry up for more and more realtors in the long term. Of course there will be creative ways for hustlers to "skim" a little off the top, or even a lot off the top of their braindead clients... but things are moving more toward direct communication. The buyers agent fee is "upfront" with the listing broker, but not the buyer him/herself. The seller's phone number is not upfront with the buyer when listing on the MLS, etc. There will be platforms which remedy this problem of a buyer being able to communicate directly with the seller. Zillow/Trulia are one such example, which doesn't really with, atm, because most buyers agents don't want to negotiate their commission directly with a FSBO seller *and* their own client. I actually had ONE buyer's agent contact me before *and* after losing on MLS, wanting to negotiate toward 6% commission, because he's wasted 4 months with his clients looking for a sub-$100k home just like the one I was selling. Instead of just take his clients there, he spent half an hour chit chatting, texting, etc.... time that he'll never get back.
And for the record, I used to do REAL work (HVAC change outs, installs) for the cheapest price, compared to anyone else in the country. Still made enough after marketing, sales, contact negotiations, prep, etc. for like $2,000 profit shared between partner and myself. All for 8 hrs of work, half of it dripping sweat in an attic. Using real tools, not just words that can be automated or tweaked in an "ad lib contract".
Being my own listing agent, working director with the broker allowed me to see things that most gone seekers never will. How buyers agents want to negotiate upwards on their commission before even considering that they'll show a property to their current... How wholesalers operate (tricky, tricky skimmers, yet I can't deny the hustle!).... How the MLS works.... Laws and whatnot.... It's worth it for everyone to DIY. In this sale, I saved $2,775 by not working with a traditional listing agent... and perhaps more importantly was the more *fluid* communication I was able to have with the buyers agent. 1 agent's ok. But 2 agents in the middle is just too much for fill in the blank H&R Block work, guys. And delays actual negotiations and understanding. Don't threaten me with a good time working for peanuts, because I only do what I love. $$ is really inconsequential in what I do.
EDIT: A lotta you guys remind me of the waiters, waitresses who complain that they aren't paid a minimum wage... but then a law is passed that forces restaurants to pay them a living wage, they FIGHT AGAINST IT!! Why? Because they make way more from the tips than half the jobs out there (at least when comparing after tax dollars, since most of them don't claim all their tips). Very similar.
Netting 3% on one $1,000,000 home for example is the average yearly income in Mississippi. If I sold one of those a year, or two $500k homes even.... Then I'd be able to show EVERY client EVERY home they were interested in, and in a tight contact negotiation, I promise you I wouldn't hesitate for long and offering to knock a whole 1% off just to make a deal and move on to the next cause. Realtors who complain about potentially negotiating they're commission simply can't be worth a flip. If you weren't KILLING it over the past couple years as a realtor, then I promise you... You're gonna need to find a new job, because with higher interest rates, more foreclosures, less buyers, the future is really gonna put a hurting on you.
