Why does the govt not focus on the amount of money the brokerage community takes out of housing every year? And how is this not collusion of fees at 5%? You are telling me not 1 brokerage house would undercut the other? Its taking so much money out of the populations hands for a service that isnt even really needed given the internet. Is the broker helpful? Maybe in a couple cases.... but most... [more]
Why does the govt not focus on the amount of money the brokerage community takes out of housing every year?
And how is this not collusion of fees at 5%? You are telling me not 1 brokerage house would undercut the other?
Its taking so much money out of the populations hands for a service that isnt even really needed given the internet. Is the broker helpful? Maybe in a couple cases.... but most people who have the ability to use the internet dont even need one.
Are there any lawyers out there that want to make a ton of money on a class action law suit? If i own a $6mm house in the West Village; why the hell do I have to pay a $300,000 commission? ALl the broker does is bring someone in that saw the place on streeteasy; then walked a buyer around the house for 30 minutes.
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Response by lookingtobuy333
over 12 years ago
Posts: 2
Member since: Feb 2013
Because people are willing to pay because they believe they have to.
Make a choice refuse to use them.
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Response by NWT
over 12 years ago
Posts: 6643
Member since: Sep 2008
Who would you sue?
No need to pay $300K. Just don't use a broker of your own, and advertise the house as principal-to-principal, no buyer's broker paid.
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Response by ggman
over 12 years ago
Posts: 117
Member since: Mar 2010
Why dont you FSBO then.
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Response by BobF
over 12 years ago
Posts: 61
Member since: Oct 2008
class action law suit against corcoran, elliman etc
Id bet if there was an investigation, emails read etc.... you would uncover collusion. Its easy to check the record of all sellers.
if i was a lawyer, i would at least throw around the idea
outside of me making money on being a make believe lawyer....how has the govt not stepped in to regulate this market at all? The US housing market is one of the largest markets in the world...and the buying and selling of it is totally unregulated. Its like how wall street was in 1982
This relates to hoarding of information. I tired to do an fsbo back in canada, but was really hard because you can't get any sales data, so can only go off of asking prices, which is less than ideal.
There are also lots of brokers offering lower commisions as well. But you also have this here a bit no? So some are doing it. Also keep in mind that most of the broker firms fall under larger corporate umbrellas.
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Response by Ottawanyc
over 12 years ago
Posts: 842
Member since: Aug 2011
NRT LLC is the nation’s largest residential real estate brokerage firm. NRT owns and operates companies in more than 35 major metropolitan areas, with approximately 710 offices and approximately 41,200 sales associates. NRT is the subsidiary of Realogy that operates all company-owned real estate brokerage offices under Realogy’s world renowned brands of Coldwell Banker®, Coldwell Banker Commercial®, ERA® and Sotheby’s International Realty®, as well as powerful regional and local brands, The Corcoran Group® and Citi Habitats.
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Response by greensdale
over 12 years ago
Posts: 3804
Member since: Sep 2012
Bob do you own a $6MM townhouse?
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Response by jim_hones10
over 12 years ago
Posts: 3413
Member since: Jan 2010
BobF
about 1 hour ago
Posts: 53
Member since: Oct 2008
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Why does the govt not focus on the amount of money the brokerage community takes out of housing every year?
And how is this not collusion of fees at 5%? You are telling me not 1 brokerage house would undercut the other?
Its taking so much money out of the populations hands for a service that isnt even really needed given the internet. Is the broker helpful? Maybe in a couple cases.... but most people who have the ability to use the internet dont even need one.
Are there any lawyers out there that want to make a ton of money on a class action law suit? If i own a $6mm house in the West Village; why the hell do I have to pay a $300,000 commission? ALl the broker does is bring someone in that saw the place on streeteasy; then walked a buyer around the house for 30 minutes.
First of all, it is 6% hayseed, not 5%.
So, an agent decides not to devalue their service, go find one of the schmucks that will. Of course, your apartment will just sit there, but that isn't collusion, it's self interest.
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Response by rb345
over 12 years ago
Posts: 1273
Member since: Jun 2009
BobF:
1. you're missing the rain forest for the twig
2. the Indians who sold Manhattan didnt own it
3. so the real money is in locating their lineal descendants
4. and filing a quiet title lawsuit demanding turnover of Manhattan to them
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Response by silentwaiter
over 12 years ago
Posts: 20
Member since: Jan 2009
I thought all brokers were worthless and then I had the following situations: (1) an accepted offer on apartment that we actually wanted but the seller's broker said the seller wasn't willing to wait to let us go through the apartment with a contractor - I think if we had had a broker the contract would have been signed (2) a seller said they were going to sell to us, we had a buyers agreement written up and then the seller at the last minute sold to someone with a significantly higher offer -- maybe, I don't know, it wouldn't have happened if we had had a broker and (3) we made an offer on an apartment and asked the seller's broker if the building had any "requirements", the broker said nothing unusual, we submitted our financial statement and THEN found out the building had a liquidity offer of X3 the purchase price -- we had liquidity of X2 the purchase price. If a someone had forewarned us about the requirement, we could have made sure that we appeared to have assests X3, instead of X2 the purchase price. So maybe the right broker isn't such a bad thing. Not sure.
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Response by Riversider
over 12 years ago
Posts: 13572
Member since: Apr 2009
There have been investigations into some practices, but consider the lobbying and campaign contributions conducted by the NAR, it's no surprise. Brokerage commissions were fixed for years, and the financial services industry argue that customers benefited. That thinking was wrong there, and it's wrong here.
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Response by greensdale
over 12 years ago
Posts: 3804
Member since: Sep 2012
>I thought all brokers were worthless and then I had the following situations: (1) an accepted offer on apartment that we actually wanted but the seller's broker said the seller wasn't willing to wait to let us go through the apartment with a contractor - I think if we had had a broker the contract would have been signed (2) a seller said they were going to sell to us, we had a buyers agreement written up and then the seller at the last minute sold to someone with a significantly higher offer -- maybe, I don't know, it wouldn't have happened if we had had a broker and (3) we made an offer on an apartment and asked the seller's broker if the building had any "requirements", the broker said nothing unusual, we submitted our financial statement and THEN found out the building had a liquidity offer of X3 the purchase price -- we had liquidity of X2 the purchase price. If a someone had forewarned us about the requirement, we could have made sure that we appeared to have assests X3, instead of X2 the purchase price. So maybe the right broker isn't such a bad thing. Not sure.
I follow you.
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Response by Sonya_D
over 12 years ago
Posts: 547
Member since: Jan 2013
silentwaiter,
Ha!, EACH ONE of those situations could have just as easily have happened WITH a broker as well. I know: it's happened both to me and others I know. A broker cannot magically (1) make people accept contractors, (2) make the seller go with your bid if another higher bid comes along, or (3) know right away every requirement that is needed to close the deal. If you think having a broker would have solved these issues, DON'T get a broker!
In fact, many of the posters on this board come here with very similar problems/questions, precisely BECAUSE they DID have a broker, and the deal fell through anyway.
Because people are willing to pay because they believe they have to.
Make a choice refuse to use them.
Who would you sue?
No need to pay $300K. Just don't use a broker of your own, and advertise the house as principal-to-principal, no buyer's broker paid.
Why dont you FSBO then.
class action law suit against corcoran, elliman etc
Id bet if there was an investigation, emails read etc.... you would uncover collusion. Its easy to check the record of all sellers.
if i was a lawyer, i would at least throw around the idea
outside of me making money on being a make believe lawyer....how has the govt not stepped in to regulate this market at all? The US housing market is one of the largest markets in the world...and the buying and selling of it is totally unregulated. Its like how wall street was in 1982
Back in the home land this has happened, eh. http://online.wsj.com/article/SB10001424127887324715704578483132482927460.html
This relates to hoarding of information. I tired to do an fsbo back in canada, but was really hard because you can't get any sales data, so can only go off of asking prices, which is less than ideal.
There are also lots of brokers offering lower commisions as well. But you also have this here a bit no? So some are doing it. Also keep in mind that most of the broker firms fall under larger corporate umbrellas.
NRT LLC is the nation’s largest residential real estate brokerage firm. NRT owns and operates companies in more than 35 major metropolitan areas, with approximately 710 offices and approximately 41,200 sales associates. NRT is the subsidiary of Realogy that operates all company-owned real estate brokerage offices under Realogy’s world renowned brands of Coldwell Banker®, Coldwell Banker Commercial®, ERA® and Sotheby’s International Realty®, as well as powerful regional and local brands, The Corcoran Group® and Citi Habitats.
Bob do you own a $6MM townhouse?
BobF
about 1 hour ago
Posts: 53
Member since: Oct 2008
ignore this person
report abuse
Why does the govt not focus on the amount of money the brokerage community takes out of housing every year?
And how is this not collusion of fees at 5%? You are telling me not 1 brokerage house would undercut the other?
Its taking so much money out of the populations hands for a service that isnt even really needed given the internet. Is the broker helpful? Maybe in a couple cases.... but most people who have the ability to use the internet dont even need one.
Are there any lawyers out there that want to make a ton of money on a class action law suit? If i own a $6mm house in the West Village; why the hell do I have to pay a $300,000 commission? ALl the broker does is bring someone in that saw the place on streeteasy; then walked a buyer around the house for 30 minutes.
First of all, it is 6% hayseed, not 5%.
So, an agent decides not to devalue their service, go find one of the schmucks that will. Of course, your apartment will just sit there, but that isn't collusion, it's self interest.
BobF:
1. you're missing the rain forest for the twig
2. the Indians who sold Manhattan didnt own it
3. so the real money is in locating their lineal descendants
4. and filing a quiet title lawsuit demanding turnover of Manhattan to them
I thought all brokers were worthless and then I had the following situations: (1) an accepted offer on apartment that we actually wanted but the seller's broker said the seller wasn't willing to wait to let us go through the apartment with a contractor - I think if we had had a broker the contract would have been signed (2) a seller said they were going to sell to us, we had a buyers agreement written up and then the seller at the last minute sold to someone with a significantly higher offer -- maybe, I don't know, it wouldn't have happened if we had had a broker and (3) we made an offer on an apartment and asked the seller's broker if the building had any "requirements", the broker said nothing unusual, we submitted our financial statement and THEN found out the building had a liquidity offer of X3 the purchase price -- we had liquidity of X2 the purchase price. If a someone had forewarned us about the requirement, we could have made sure that we appeared to have assests X3, instead of X2 the purchase price. So maybe the right broker isn't such a bad thing. Not sure.
There have been investigations into some practices, but consider the lobbying and campaign contributions conducted by the NAR, it's no surprise. Brokerage commissions were fixed for years, and the financial services industry argue that customers benefited. That thinking was wrong there, and it's wrong here.
>I thought all brokers were worthless and then I had the following situations: (1) an accepted offer on apartment that we actually wanted but the seller's broker said the seller wasn't willing to wait to let us go through the apartment with a contractor - I think if we had had a broker the contract would have been signed (2) a seller said they were going to sell to us, we had a buyers agreement written up and then the seller at the last minute sold to someone with a significantly higher offer -- maybe, I don't know, it wouldn't have happened if we had had a broker and (3) we made an offer on an apartment and asked the seller's broker if the building had any "requirements", the broker said nothing unusual, we submitted our financial statement and THEN found out the building had a liquidity offer of X3 the purchase price -- we had liquidity of X2 the purchase price. If a someone had forewarned us about the requirement, we could have made sure that we appeared to have assests X3, instead of X2 the purchase price. So maybe the right broker isn't such a bad thing. Not sure.
I follow you.
silentwaiter,
Ha!, EACH ONE of those situations could have just as easily have happened WITH a broker as well. I know: it's happened both to me and others I know. A broker cannot magically (1) make people accept contractors, (2) make the seller go with your bid if another higher bid comes along, or (3) know right away every requirement that is needed to close the deal. If you think having a broker would have solved these issues, DON'T get a broker!
In fact, many of the posters on this board come here with very similar problems/questions, precisely BECAUSE they DID have a broker, and the deal fell through anyway.