Cliffclimber

Hi everyone, been a silent member of this site for a while but am now moving to the back to the US after 25 years away (left when I was 5 years old, I'm a dual UK/US citizen) and have a question about real estate.

Is it true that US Realtors charge around 3% commission? And is it true they charge this for selling AND buying, for a total of 6%?! Why do you need a realtor to buy a house? Do they really do a lot more than they do in the UK (where you pay less than 2 percent norm, for selling only.)

It sounds like a disgusting rip off to me - I could stomach 3% for selling - but I do not want to pay 3% for someone to drive me round or research for me.

I'm moving to Jacksonville in Florida in two months, incase it changes state by state.

Any advice on the realities of this would be appreciated.

bored-silly

The seller pays the 6% so as a first time buyer, you don't pay any comission.

Cliffclimber

Oh, thats good news - but the seller gets stiffed for 6%! I've sold two houses in the UK, and each time bitched and whinged at the estate agents to get the fee down to 1.5-1.6%!

6% just seems insane. Sounds like I'll be alright now, but should I ever move? Hate the sound of that!

Patrick

If anyone has Realtor questions please PM me as I am licensed realtor and will be able to help you. I am not comfortable giving blanket advise to any question.

The commision is negotiated by the seller with the Listing agent, 6% is common but not written in stone.

Get a buyers agent if you are buying, especially in a strange town, I can hook you up with Buyers agent in the area that you are looking who will be checked out beforehand. The buyers agent should not charge you a fee to show you houses, if he does find one that does not. You will only need one agent and they should be able to show you all the properties on the MLS.

Get the agent to explain all the costs associated with closing and who pays for them. The commision is paid by the seller.

Patrick

Patrick

Its part of the house price, its all factored in, if you sold a house by yourself the 6% comes off the asking price! (or it should)

TruBrit

[QUOTE=Cliffclimber]Hi everyone, been a silent member of this site for a while Is it true that US Realtors charge around 3% commission? And is it true they charge this for selling AND buying, for a total of 6%?! Why do you need a realtor to buy a house? Do they really do a lot more than they do in the UK (where you pay less than 2 percent norm, for selling only.)


Hiya, and yes it's a mega rip-off however you can shop around...we've just moved within Tx and managed to get an agent to do the dirty deed for 2% so shop around...and remember to read and re-read the contract and check out the HOA regs and rules prior to closing, some agents hold that from the prospective buyer and after closing it's too late! Good luck

fatbrit

If you search around, you may find realtors who will pass back part of the 3% commission they get as buyer brokers on the deal.

Although it's state specific (and I have little idea about FL, I'm afraid), they do have more responsibility here. For example, it's the norm here in AZ not to use a lawyer since the realtor will draw up the contract for you.

The minimum you can expect to pay as a seller is usually around the 4% mark if you use a realtor. This is more likely when the market is hot for sellers. For the 1% on the selling side (3% goes to the buyers side), you're unlikely to get much more than an MLS listing, sign outside, and contract negotiation, though.

bored-silly

So you see, already there are plenty of people who can give you their experience! Good luck.

Patrick

Yeah, and ask for a blow job while your at it, we all do that too

You get what you pay for, these are called discounted brokers and do no promotion of your property, they are only one step up from a FSBO, go for a full service agent, one that will promote your property.

Patrick

the realtor to buy your house is free, the seller pays the commision.

Agency is the answer to that question, in America the listing agent represents the Seller, you (the buyer) has no protection if you do not use a Buyers agent.

fatbrit

I got a check back for round about $1,000 from our chirpy realtor when I bought our place. Arrived by FedEx the day after closing. Used this lot: www.zipreality.com. Notice they're still offering a cut, but are not so generous these days as when I did it. Hear realtors offering "a thousand-buck gas card on closing" all the time on local radio ads. They tailed off a touch while the market was hot, but now it's slowed down they're on this wagon again.

Never say never!

ladyofthelake

We were very happy with the realtor we used based in Jacksonville. I'll pm you the name.

Elvira

Oh and don't forget about the closing costs on the mortgage, and the points (avoid if at all possible), and be very careful if you consider an ARM as opposed to fixed...

Not forgetting Title insurance...

And lack of credit score?

Florida? You mean where they have all the hurricaines? :scared:

(When we bought our house, we consulted a useful book called 'How to buy a house in California'. Maybe there's a FL version?)

fatbrit

Yep -- the loan broker will also make around 2 to 6 per cent on you as well. But if you baulk at the up-front fees (e.g. origination fee, brokers fee, points, etc.), s/he'll simply tack it on at the back end to increase your interest rate, a place where you can't directly see it.

Shop around! And when comparing offers, compare the whole offer -- not just the rate -- over the lifetime of how long you guess you will hold the loan.

Patrick

I always use people who have to give me (the punter) part of their earnings, it makes them much more likely to work harder for me and look after my best interests when they know part of their pay packet is going to me as a gimmick for using them! Great