Here’s a great idea. Let’s kill all the Realtors.
I’m open to new and unique ideas. However, things are a lot more complicated than this author suggests – I mean, he comes off in the article as someone just disgruntled that, although he made a killing selling his own home, he had to share the proceeds with someone.
Actually, someone(s), because there are at least four people/institutions involved in the 5% commission – the seller’s agent, the seller’s agent’s brokerage, the buyer’s agent, and the buyer’s agent’s brokerage. Each get a quarter of that 5%.
Someone should do a simple story about brokers, agents, and commissions, suggesting different models that could be used to sell/buy a home, along with the advantages and disadvantages.
I’m not that someone.
By Alan Murray, The Wall Street Journal
Alan Greenspan thinks homeowners are powering consumer spending. I have an additional culprit: Realtors.
Think about it. If you or I sell a house, we have to turn around and buy another one — minus moving expenses, closing costs, origination fees, etc. No cause for a spending spree there.
But the real-estate brokers walk away with, on average, a neat 5% of the sale. When I sold my inflated house in Washington, D.C., last month (in order to purchase an inflated house in Fairfield County, Conn.), the brokers earned enough to build their own house in most parts of the world.
Of course, they do some work for that money. Most people don’t sell houses that often in life. Having a trusted professional who can help them price it, prepare it, show it and negotiate multiple offers is certainly of value. For that, real-estate brokers deserve something.
Complete article: Realtors Fiddle As Real Estate Burns Hotter Than Ever