Yup, the hub bub is all about the 60 Minutes segment tonight.
The agent at Redfin who felt bad she made 12k for 5 hours of work should feel bad! She's the reason we have a bad name... no transaction, no matter how easily one finds the house only takes 5 hours. Maybe she doesn't even realize the things she wasn't doing for her clients. She should be ashamed, and she should be glad that the walmart of the industry will take her under their wing. Now she can work on 8 transactions a week. Then she'll feel she's earning her keep.
Commissions... do you make 6% , I surely don't. Do you even make 3% .. ummm, no.
Even in a 3% situation, most agents split with their broker anywhere from 50% to 90% ... THEN, since we are one of the most heavily taxed professions, what's left is federally taxed at what? 30%? Then another 10% self employment tax. Then 5-10% on state income tax. Then you probably had some marketing expenses on that property; postcards, flyers, advertising, staging, etc. Then you probably paid your own E&O, technology expenses , auto expenses, supplies, desk fee, whatever whatever whatever..
Now tell me what's left and tell me again how I make 6%?? Show me the money!
There's a redfin listing right down the street from my house (its the only one I've EVER seen), I see their open house sign every weekend... but so far they have had zero impact on my business.
It would've been great to hear what Redfin really does for their clients. They have them call us (listing agents) to show the homes . I would think it would be their fiduciary duty to their buyer clients to see the house, open the house, and counsel regarding same before an offer is made. Educating the clients on the market is a huge part of what a full service realtor does. Redfin presumes that the buyers know it all.. and sure they know alot with the availability of information - but nothing can substitute for the experience, market knowledge and negotiating skills of a true professional. Not to mention the relationships we build with fellow agents along the way. We are paid not only for what we'll do, but for what we've already done - the systems, the education, the market knowledge, the relationships, and on and on... its what makes a successful transaction.
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