4 ms·
I'm very interested in why many people believe a realtor should receive a percentage of the home's sale price as compensation but not the: - inspector (arguabl
by tabeth 9y ago
I'm very interested in why many people believe a realtor should receive a percentage of the home's sale price as compensation but not the:
- inspector (arguably a good one is more useful than realtor by pointing out foundation problems and other issues that can cost 10s of thousands)
- attorney (again, arguably more useful. they can point out clauses and things like flood zone, unpermitted work, liens on the property, etc.)
- appraiser (you might not even be able to get a loan if the house appraises for less than the purchase price, unless you can foot the difference and/or waive appraisal contingency)
- lender (unless you're paying all cash. some lenders have vastly different interest rates they can offer you, given a credit score. this can save you 10s of thousands).
Additionally, it doesn't really make sense. The realtor's value is not proportional to the price of the home. Even if you believe a realtor is extremely valuable, a house being twice as much in price wouldn't make them twice as valuable.
Redfin is definitely an interesting step in the right direction towards fixed fee realty.
- gpawl 9y agoSame reason that app stores charge a 30% commission instead of a flat fee. Prices are what the market will bear and prices are controlled by a cartel that runs the marketplace (the MLS members)
- kevincennis 9y agoAm I misunderstanding your point about the lender? They obviously get paid a percentage of the loan value rather than the home's sale price, but presumably those are fairly well correlated.
- kelukelugames 9y agolol, i paid an inspector to look at my newly constructed condo. easiest 500 bucks he ever made.
- ryuker16 9y agoThose guys make Bank on regular business unlike the sales guy who can have a bad month and earn zero. Real estate agents as a model needs to go however for some folks, it's pretty good if they get a good salesman or buyer agent. I've dealt with a house dumper which is a nightmare as a seller but the best deal in town for a buyer(10-20% below market). Before the internet, real estate agents were useful or needed so older folks are really hesitant to do for sale by owner.