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Locked: Why do people here dislike real estate agents so much?

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Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto

Why do people here dislike real estate agents so much?

?

Why such hostility?

Sure they have a vested interest in the market but so does literally every other profession.

Car salesman and auto repair shops will often give you "inflated" analysis of your car of whether you should upgrade to a newer car or not.

The Weedman salesman will give you an "inflated" analysis on whether your lawn needs to be taken care of or not..

Wisdom tooth dentists will give you an "inflated" analysis of whether you need such a surgery...

Barbers will "inflate" his analysis on whether you need a haircut...

Portfolio managers will give you an "inflated" analysis of whether you need to buy mutual fund A or not...

Even a software developer will "inflate" the need for software upgrades and implementation when it may not even be necessary.


Is it no surprise that real estate agents will do something similar?


And does that mean we should disregard advice from: dentists, healthcare providers, salesmen, software developers, barbers, and financial experts?
154 replies
Deal Addict
User avatar
May 10, 2005
1291 posts
75 upvotes
They think house's price, then think 6% then they say " "for that works" as works means the times agents spent with them.
Deal Addict
User avatar
Aug 3, 2009
2287 posts
716 upvotes
Nova Scotia
I would be interested to know what value people get out of a realtor. What do they do to earn 1-5% of your house sale? I can appreciate people may not be comfortable filling out purchase agreements, but it is so boiler-plate it doesn't appear to take an expert to fill in the blanks.
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
jmatheson64 wrote: I would be interested to know what value people get out of a realtor. What do they do to earn 1-5% of your house sale? I can appreciate people may not be comfortable filling out purchase agreements, but it is so boiler-plate it doesn't appear to take an expert to fill in the blanks.
No one is forced to use a realtor, just no one is forced to use a software developer or a car salesman. The rate is completely up for negotiation as well.

If you find that a realtor is useless, you are free to list the home on your own.


But that doesn't justify the hostility towards realtors...
Penalty Box
Oct 17, 2012
2689 posts
124 upvotes
no one likes "middle guy"
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
TripleTAP wrote: no one likes "middle guy"
Agreed but the hostility towards the real estate "middle guy" has been overstated so many times in so many threads...


There is a "middle guy" in every single industry and sector of business.

The financial advisor is the middle guy between the fund and you.

Retailer is the middle guy between manufacturer and consumer.

Car salesman is the middle guy between manufacturer and consumer.

Store salesman is the middle guy between the piece of clothing and you.
Deal Guru
User avatar
Mar 1, 2004
12861 posts
1485 upvotes
Pickering
chafien wrote: Agreed but the hostility towards the real estate "middle guy" has been overstated so many times in so many threads...


There is a "middle guy" in every single industry and sector of business.

The financial advisor is the middle guy between the fund and you.

Retailer is the middle guy between manufacturer and consumer.

Car salesman is the middle guy between manufacturer and consumer.

Store salesman is the middle guy between the piece of clothing and you.
My financial advisor calls me or takes my calls after my initial transaction and makes further adjustments. Provides service after sale

The car salesman (I don't need one) is a definite middle guy. No service provided after sale.

Retailer sells you things and provides the security of exchange if there are defects, and warranty assistance.

Store salesman is back by the store so you have defective merchandise protection and warranty assistance.

As you can see the people who provide the least benefit, to knowledgeable people are car salesman and real estate agents. If you are not detailed and do research, you will need them. When you exercise the power and knowledge of the internet, you will not need them and consider them money lost and a nuisance.

The percent structure of payment is also an annoyance because there is not much different work involved to sell a more expensive house, so people don't feel they should pay more, especially when they are stretching every dollar to get a house.'

I'm not arguing, just pointing out the obvious.
Jr. Member
Mar 12, 2009
129 posts
43 upvotes
Toronto
chafien wrote: Portfolio managers will give you an "inflated" analysis of whether you need to buy mutual fund A or not...
Correct me if i am wrong.

I believe if it illegal for financial adviser or profile manager to guarantee return on investment. On the other hand we have real estate agents can guarantee your real estate investment will go up 10~20% in the next year, and it is completely legal.
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
AudiDude wrote: My financial advisor calls me or takes my calls after my initial transaction and makes further adjustments. Provides service after sale

The car salesman (I don't need one) is a definite middle guy. No service provided after sale.

Retailer sells you things and provides the security of exchange if there are defects, and warranty assistance.

Store salesman is back by the store so you have defective merchandise protection and warranty assistance.

As you can see the people who provide the least benefit, to knowledgeable people are car salesman and real estate agents. If you are not detailed and do research, you will need them. When you exercise the power and knowledge of the internet, you will not need them and consider them money lost and a nuisance.

The percent structure of payment is also an annoyance because there is not much different work involved to sell a more expensive house, so people don't feel they should pay more, especially when they are stretching every dollar to get a house.'

I'm not arguing, just pointing out the obvious.

Your financial advisor provides you service because your fund is still with them and they are still "milking you" of your money via MER.

I find that majority of financial advisors lack knowledge on their own financial products more than a realtor lacks knowledge of real estate...


If the realtor charged you an annual fee, I guarantee they would be giving your chocolates every month and holding a meeting to make sure you are happy.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
No one dislikes agents. They dislike paying commissions that are somewhat non-flexible and that don't make sense.

for example, a real estate agent on the sell side, gets 2.5% for listing a house, but not bringing a buyer. The buyers agent does that. So how can 5% of real life money out of your pocket be siphoned out for that?

A financial advisor may get 1% commission from your investment, but that would be a full fledge brokerage that would ensure you are invested and sticking to an investment objective. They will create a financial plan for you custom to your life style. They will meet with you year after year and give you investment advice.

A real estate agent does not do this.

As for car salesman, you don't pay the car salesman directly, the dealership does. While the cost is factored into the car, the car salesman doesn't get a proportionate amount to how much car he sells.

Infact a car salesman may actually get LESS commission on a $100,000 vehicle than he does on a $20,000 vehicle - this is what my good friend working for lexus gets paid by the way - way more on a $20,000 car than a $80,000 car lol.

In every example you post, the commission that the "sales man" gets paid is far less in every other industry, except in real estate.... And in real estate I would argue that they probably do far less work.

Im sure that people buying a car haggle WAY WAY MORE than the people buying a house.. Why is that? why is that ok? why are you ok with that? Why are you ok with a guy selling a $50,000 car making $300 on that sale, but if it were a house for $50,000 you are ok with $2500 in commissions going to a buyer and selling agent????

lol
Deal Fanatic
Sep 23, 2007
5654 posts
2168 upvotes
I don't hate them. I just think they don't add much value. I think even a car salesman adds more value than a real estate agent. And a lot of them have this "BS lie through my teeth" attitude.

There are certainly some good agents out there. it's just that a lot of the agents out there are people who have no ability to do anything else. Some chose to be an agent not because they have skills but because they THINK it is easy and becoming an agent is relatively easy.
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
ray1202 wrote: Correct me if i am wrong.

I believe if it illegal for financial adviser or profile manager to guarantee return on investment. On the other hand we have real estate agents can guarantee your real estate investment will go up 10~20% in the next year, and it is completely legal.

I've heard of many financial advisors give nonsensical advice just to get clients to buy a fund.

I've also heard of slimy car mechanics overstating your car problems and overbilling you for service.


This happens in every industry and every sector in business.
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
BananaHunter wrote: I don't hate them. I just think they don't add much value. I think even a car salesman adds more value than a real estate agent. And a lot of them have this "BS lie through my teeth" attitude.

There are certainly some good agents out there. it's just that a lot of the agents out there are people who have no ability to do anything else. Some chose to be an agent not because they have skills but because they THINK it is easy and becoming an agent is relatively easy.
daivey wrote: No one dislikes agents. They dislike paying commissions that are somewhat non-flexible and that don't make sense.

for example, a real estate agent on the sell side, gets 2.5% for listing a house, but not bringing a buyer. The buyers agent does that. So how can 5% of real life money out of your pocket be siphoned out for that?

A financial advisor may get 1% commission from your investment, but that would be a full fledge brokerage that would ensure you are invested and sticking to an investment objective. They will create a financial plan for you custom to your life style. They will meet with you year after year and give you investment advice.

A real estate agent does not do this.

As for car salesman, you don't pay the car salesman directly, the dealership does. While the cost is factored into the car, the car salesman doesn't get a proportionate amount to how much car he sells.

Infact a car salesman may actually get LESS commission on a $100,000 vehicle than he does on a $20,000 vehicle - this is what my good friend working for lexus gets paid by the way - way more on a $20,000 car than a $80,000 car lol.

In every example you post, the commission that the "sales man" gets paid is far less in every other industry, except in real estate.... And in real estate I would argue that they probably do far less work.

Im sure that people buying a car haggle WAY WAY MORE than the people buying a house.. Why is that? why is that ok? why are you ok with that? Why are you ok with a guy selling a $50,000 car making $300 on that sale, but if it were a house for $50,000 you are ok with $2500 in commissions going to a buyer and selling agent????

lol


The fee they charge is dictated by the market.

If people feel that realtors charge too much, then they are free to go elsewhere and find realtors that charge less and eventually the market will force realtors to charge less.

No one is forced to use a realtor..
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
chafien wrote: Your financial advisor provides you service because your fund is still with them and they are still "milking you" of your money via MER.

I find that majority of financial advisors lack knowledge on their own financial products more than a realtor lacks knowledge of real estate...


If the realtor charged you an annual fee, I guarantee they would be giving your chocolates every month and holding a meeting to make sure you are happy.
Ok, so someone else brought up a point which you neglect to discuss and has been brought up on the forums a hundred times:

Why is it the RE agent gets 2.5% on a $500,000 but can also get 2.5% on a $1,000,000?

Is he doing MORE working to sell a $1 mil house vs a $500,000?

A financial advisor getting 1% fees on $500,000 vs $1,000,000 is he doing more work for either client? (but also thats not even true because if the fee is 1% that doesn't mean the advisor is getting 1% he might be getting 1/2 that or less.)

So then wouldn't you say that an advisor should be paid more?
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
daivey wrote: No one dislikes agents. They dislike paying commissions that are somewhat non-flexible and that don't make sense.
If no one dislikes real estate agents, where so I see these posts?




They portray an real estate agent like janitor status. That is not hatred? I feel like that is hatred.
Banned
User avatar
Jun 8, 2008
3977 posts
1423 upvotes
Toronto
Because RFD has contempt for anyone who isn't either an engineer or in finance ;P
Banned
Jul 19, 2011
48 posts
11 upvotes
Toronto
daivey wrote: Ok, so someone else brought up a point which you neglect to discuss and has been brought up on the forums a hundred times:

Why is it the RE agent gets 2.5% on a $500,000 but can also get 2.5% on a $1,000,000?

Is he doing MORE working to sell a $1 mil house vs a $500,000?

A financial advisor getting 1% fees on $500,000 vs $1,000,000 is he doing more work for either client? (but also thats not even true because if the fee is 1% that doesn't mean the advisor is getting 1% he might be getting 1/2 that or less.)

So then wouldn't you say that an advisor should be paid more?

The fee is dictated by the market.

I don't feel that doctors should be making $1500 for 1 hr worth of work to remove my wisdom tooth, but the market is willing to pay.

I don't feel that movie stars should be making $50million per movie either, but the market is willing to pay

I don't feel that Lebron James deserves $20 million, but the market is happy to pay to watch him play.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
chafien wrote: The fee they charge is dictated by the market.

If people feel that realtors charge too much, then they are free to go elsewhere and find realtors that charge less and eventually the market will force realtors to charge less.

No one is forced to use a realtor..
That's where you are wrong. The market is not free like you claim it is. The realtors have an edge with infomation that is closely guarded by the real estate agency. Why aren't they making MLS information public? why cant you see what a house sold for openly? how long it was on market? all of the info that RE agents get to see?

How come when I trade stocks, I get all the public information for free?

It's not one in the same. the market will never balance out because they have protected their information.

So you're right, you're not forced to use an agent, but you kind of are because the balance of power is with the agents as they have the access to infromation which you dont.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
chafien wrote: If no one dislikes real estate agents, where so I see these posts?





They portray an real estate agent like janitor status. That is not hatred? I feel like that is hatred.

I like how you quote those posters, but fail to see the context it was posted in.
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
wirebound wrote: Because RFD has contempt for anyone who isn't either an engineer or in finance ;P
I disagree. No one has ever posted they hate real estate agents. There have been a few threads lately that openly discuss their commission structure and reforms to change that. That doesn't mean they hate RE agents.

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