'Million Dollar Listings'

[S. Marty Pantz]

Has anyone else had the chance to watch an episode or two of that television show, "Million Dollar Listings." Can someone please explain to me just exactly what special expertise those three low-talent real estate agents bring to the table to justify $200,000 to $300,000 or more commissions? None of the episodes I watched revealed anything these guys did, other than show potential buyers the property and make a few telephone calls.

And is it ethical for an agent to represent both buyer and seller and demand a "double commission"? Under this system, the agent had no incentive for getting the price reduced for either client, because that would only serve to reduce his, the agent's commission. (I saw one episode where the agent with the Bobby Goldsboro hair-do convinced his buyer client to raise his bid substantially, and that just did not appear to be quite right.)

Would it not be more fair for an agent to be entitled to a minimum commission, say, one or two percent of the listing price. Then EARN an additional commission of, say, ten or fifteen percent of the amount he saved his client, the buyer, from the listing price. So, if a property listed for a million dollars, he would be entitled to a minimum of $20,000 (at a two percent minimum). And, if the buyer ultimately got it for $900,000, the agent would get another $10,000-$15,000.

[david_mcmanus]

[EconE]

Chad Rogers is "connected"

It's the way the entertainment industry works.

[ira s]

And is it ethical for an agent to represent both buyer and seller and demand a "double commission"?

It's a slippery slope, and most brokerages discourage being a dual agent. I've had the opportunity on listings I've had, and told the would be buyers to get an agent or a real estate attorney, and referred them to people I trust.

[perfectfire]

I've heard of people using dual agency to get the seller's realtor to try to convince the seller to take a lower price. If, for example, a buyer wants 500k and you offer 450k with the realtor getting all 6%, the seller's agent stands to make 27k if they can convince the seller to take your offer now, vs. waiting for buyer (with their own realtor) at 500k and only making 15k.

Normally both buyer's and seller's agents are working against you as both stand to make more if you pay a higher price, but this is one way to turn the tables.

[eastcoaster]

[S. Marty Pantz]

I got the feeling the producers of this "reality" series were implicitly saying that these three low-talents did not deserve these commissions either. In the episode I watched last night--which appeared to be the series finale--the three twenty-somethings were being interviewed by some Malibu magazine (the topic being LA's "hottest and hippest" real estate agents). At one point the magazine interviewer said: "You three all say this is hard work. What's so hard about it?" The three all looked at each other dumb-founded and could not immediately come up with an answer, before one or two of them then, verbally stumbling, said something about "It's as hard as you want to make it." And "You have to deal with people's emotions."

Later in this episode, "Bobby Goldsboro" is "helping" a friend purchase a $6 million-plus Malibu Colony property. After he has made his half-dozen phone calls, negotiating the purchase price, and earned an un-godly commission, they show him immediately afterward in his office, in front of the mirror, applying tons of hair-spray to his hair-do. As if the producers were saying, "Yeah, that was indeed 'hard work.'"

[EconE]

East coaster...

Of course it's the way RE works...but show me a Realtor on the listing side or the buying side for Hollywood A-listers in Malibu (Chad Rogers neck of the woods) or other high end areas of L.A. such as the Platinum Triangle (Beverly Hills, Bel-Air, Holmby), Hancock Park, etc that isn't connected either through family or friends in the industry.

I'm not saying that they aren't skimming 6% on high end transactions with no real skills, but before they are able to do so, they have to know someone first. It's usually through their parents.

I grew up with some of these types of "kids" (Not Chad Rogers however).

Besides...what's a few hundred thousand between friends when they are all worth $100MM+?

This isn't your typical RE for mere mortals.

[mukoh]