Why use a US broker despite the high commission?

Why use a US broker despite the high commission?

Why use a US broker despite the high commission?

 

מה Why US Brokers Earn 6%! Commission ❓
However, it is best to use the broker when we want to sell

When I tell people about expenses,
That we have on property at the time of sale
And indicates that the brokerage commission is 6%
Almost always raise an eyebrow and ask me -
"what? That's a lot of money !!!
Let's be realtors in the US!
Here in Israel we are used to it
Pay the broker 2% on a real estate transaction
And this too sounds to us many times exaggerated ...
So 6%?

So how in our digital age with sites such as Zilo, Trollia and others
(US 2 and WINWIN Americans) Is it still going on?
Curious? So….

In the US, it is customary to pay the brokerage fee
Is usually on the seller only,
Meaning that the buyer does not pay any brokerage.
Which causes it, naturally
The buyer turns to the broker's help.
The realtor ran for him and suited him
Exactly what he was looking for,
Take care of his mortgage, do the negotiations for him
And it's all free ... That's how it is usually there ...

This is why the market works,
The seller also has an interest in contacting the broker in order to
Be exposed to as many potential buyers as possible,
Because most of them work with realtors ...
So for the most part, each side has its own mediator,
And the intermediaries are the ones who connect buyers and sellers
(They communicate through a computerized system
The MLS and this I will elaborate on in another post).

In such a situation, the brokers share a fee
And each person will receive 3% of the commission paid by the seller.

So even though brokerage fees seem high to us
In relation to what we are used to here in Israel
We still need a broker to sell
This expense is part of the weighting
That we do when we build
The initial business plan
And despite this expense,
The projects in which he was chosen to invest
Will be attractive in their returns

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Responses

  1. When I read your explanation suddenly the genius of the method for controlling the buyer market worked only with a broker, the whole reason why a person will not work with a broker because it costs money, but once the buyer does not pay then all the buyers go to the brokers and then the market is controlled by the brokers.
    Although it's basically laughter that it does matter who actually pays, at the end of the day it does affect the selling price, of course it's not a direct effect but an influence.
    It reminds me that I sold an apartment in the country and had a realtor with exclusivity and came to me not through the realtor who told me he wanted to buy but he did not agree to pay real estate. So I told him that in order I would pay the brokerage, so I did not agree to Darth for the price as I agreed to go down to the buyer who paid the brokerage. That means in the end he felt both good and paid mediation.

  2. Excellent post and I will add that in the US the broker is like a lawyer writing the proposal. While in the country he is responsible for finding the property and negotiating and then being sent to lawyers who are also paid and because it has passed hands sometimes there are inconsistencies between what was initially agreed that the broker was in the picture. In short the idea that the broker in America is responsible for all sides of the deal makes the deal flow with a minimum of glitches.