3 ms·

Real estate agent and (mostly) former software developer here... every time real estate comes up on HN I lose about 50 status points, but here goes nothing...

Real estate agent and (mostly) former software developer here... every time real estate comes up on HN I lose about 50 status points, but here goes nothing... Just thinking about a few transactions that come to mind... 1) We've got a feud over two trees and had to call in an arborist and a structural engineer. 2) I've got an orchard with a ROFR and a big city lawyer on the other side of the deal, on a property with a disused fuel tank and questions about former pesticide use. 3) A house where the deal only got done because the other agent and I each threw in 1% of our commission to bring the two sides together. 4) A ranch property where there are water rights that need to be cured and where the tenant is telling lies to prospective buyers and need to be evicted. 5) A neighbor who keeps suing people to stop a bridge from being replaced because he wants to force them to sell their properties and doesn't want anyone accessing their properties. 6) A lodge building zoned residential but that has been used for commercial purposes for decades that has a seasonal spring (yes water) that pops up in the basement. 7) A cute craftsman home with an oil tank buried in the backyard. 8) The seller tore out the carpet when they exited 4 days post-closing and left a giant pile of garbage in the driveway. I'm just throwing out some example transactions here to demonstrate two points: A) When people make comments about "normal" real estate transactions or why Realtors aren't needed, to me it signals they know jack shit about real estate. If I get one deal a year that is "easy" I consider it very lucky. I do not see how we automate away all of the crazy things that humans do to their properties. B) At 3% my services are cheap. In the two states where I do business, I'm held to the same standard of practice as a lawyer, plus I'm a marketer, a home stager, a photo / video / drone expert, a land use and water rights expert, an economist, and half a dozen other things in order to provide a professional level of service to my clients. Only to be constantly told I'm just a useless cog who will soon be replaced. Well, good luck to y'all, have fun suing each other.

deleted 2y ago
[deleted]
Terretta 2y ago
> At 3% my services are cheap Do you give % back if none of the above came up? Or is the 3% insurance, where people without issues are covering the costs of other people's issues where 3% would be too little?
- poulsbohemian 2y ago
  A friend who is a builder (has done approx 700 homes) recently said it well - in any given market, there are 2 agents who are doing really well, 15 agents who are doing better than minimum wage, and then there is everyone else. Extrapolate those numbers up for your market and it is accurate - the majority of agents are at best making a little travel money, and likewise the average agent doesn't last 4 years in the business. Buyers you may have invested a lot of time in end up buying with another agent (yes, even after enforced buyer broker agreements this will happen) and sellers sometimes decide to cancel their listings after you've invested (photos, videos, drone work, postcards, mailers, open houses, etc) potentially leaving you without compensation. So you are absolutely right that in many cases the reason it costs as much as it does is simply the cost of doing business.

deleted 2y ago

[deleted]

Terretta 2y ago

> At 3% my services are cheap Do you give % back if none of the above came up? Or is the 3% insurance, where people without issues are covering the costs of other people's issues where 3% would be too little?

poulsbohemian 2y ago
A friend who is a builder (has done approx 700 homes) recently said it well - in any given market, there are 2 agents who are doing really well, 15 agents who are doing better than minimum wage, and then there is everyone else. Extrapolate those numbers up for your market and it is accurate - the majority of agents are at best making a little travel money, and likewise the average agent doesn't last 4 years in the business. Buyers you may have invested a lot of time in end up buying with another agent (yes, even after enforced buyer broker agreements this will happen) and sellers sometimes decide to cancel their listings after you've invested (photos, videos, drone work, postcards, mailers, open houses, etc) potentially leaving you without compensation. So you are absolutely right that in many cases the reason it costs as much as it does is simply the cost of doing business.