The only reason the industry is even still there is because of the MLS system, where people can list their home and buyers can see all the info. Then the lockbox is put on the home and the realtor is the agent that the seller trusts to bring the buyers in when the seller is not home. If not for the MLS listing and the lockbox, we would not need the realtors and their fees..

Some realtors around here do charge a flat listing fee of $500 and then 1% – 3% when the house is sold – about 1/2 what everyone else charges. That is headed in the right direction. But their motivation is still commission oriented – higher priced house = more money in their pocket. Until there is a set fee earned, no agent out there will really be working for the buyer.

I am an insurance broker and I see the same thing in my business bec it is also a commission based business. I just lost a nice group to another broker because I wanted to do what was right for the client and the other broker wanted to make the most possible money in her pocket, so she brought in another broker to do the deal with whom she would make more profit for herself. We were not going to make much commission on our product, but we were going to place some really great terms for the group with which we were working.

What you said about working your tails off in hope for a closed transaction is the exact reason why I brought up the compensation structure. Realtors are supposed to be the advisers in the transaction but they are paid like a salesperson. This is just wrong and one that should be changed to better align the interest.

If the realtor thinks the offer is ridiculous, the person on the other side will just pick it up subconsciously and think it’s too low as well. How do that help me at all?

I’m sure there are bad apples out there as well as good ones though, so I will keep looking!

As longs as agents are compensated this way, things will never change. Didn’t we just see Wall Street’s traders take devastating losses because they were only compensated for profits – and not for risk management?

I feel for the realor who commented above. But, fiduciary responsibility? Who is he kidding? Financial planners and advisors have the same responsibility – and does it appear that they care? And stockbrokers who churn the accounts of the ingorant and push high commission products on their customers.

It’s the same everywhere. Salespeople have to sell to earn any money. With that incentive, how can they be expected to have your interests at heart?

So let them show you houses and get your information from reliable sources.

I live in Montana and when I went and bought a house I got a realtor and had the house inspected. For the money I paid I should have gotten good service, right? The realtor failed to tell me about title problems, easements, and covenants. The realtor representing the seller was in the same agency and he knew I wouldn’t meet the standards of the covenants and didn’t tell my realtor or else she decided not to tell me. I had two dogs and covenants state one dog. My realtor met my dogs almost every day during the selling process of selling my townhouse and I stated to her that I AM MOVING TO THE COUNTRY BECAUSE I HAVE TWO DOGS AND WANT TO FOSTER FOR THE HUMANE SOCIETY. Compounding the anger and disappointment I feel is the huge amount of money I have had to spend on the house for basic things like leaky roof, improperly done roofing, some mysterious leak in the foundation, and various other heating and plumbing issues. I still haven’t replaced the rotten back door which leaks like it is open. And I have no idea why NO HEAT GETS TO THE BACK BEDROOMS. Between the house inspector’s clauses and CYA in the contract there was nothing I could do. I consulted a lawyer and was told there is nothing I can do. Between that terrible beginning and the hassles of crooked contractors I throughly wish I had bought an RV and hit the road instead. Or could find a rental that accepted dogs. Seriously, home ownership this time around has been a nightmare.

Remember that you are the one paying (via the commission) for this sales transaction… They need to do YOUR bidding, not theirs. If you want a better deal, then write down what YOU want and have them present YOUR offer. YOU have the final decision. If you want to present a lowball offer, they are supposed to do it. Period. You are in charge, not them. Buy law, they HAVE to present your offer if you are anywhere near the sales price. They don’t make the deal – you do! Do your homework, know what you want, know what you want the offer to be, and make sure that is the offer they present – after all, you are signing on the line – it’s your call. If they don’t do YOUR bidding, then leave. It’s as simple as that.

I have had realtors look at me like I was nuts when I gave them the offer I was willing to make – but I was firm and said, yes, that’s my offer – but they presented the offer anyway. And 9 times out of 10, the offer was accepted, altho sometimes there were some counter offers in the process, which is all a good part of the bargaining process. You’ll never know what a seller will accept until the offer is actually presented. What have you got to lose?

If one of them has lied etc, report them in writing to the board of realtors, with back up info. If the board does not get complaints, they can’t take care of the problem. Also report them to their supervisors if they have one – some supervisors may not care, but others will. Realtors may be desperate right now, but desparation should not breed dishonesty.