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Weirdly I kinda think it should go the other way. Does it require twice as much work (or expertise) to sell a million dollar house than a 500k house? If not, wh
by harryh 8y ago
Weirdly I kinda think it should go the other way. Does it require twice as much work (or expertise) to sell a million dollar house than a 500k house? If not, why do agents get paid twice as much?
- charlesdm 8y agoBecause the $200-500k house will often (basically) sell itself.
- Axsuul 8y agoAn agent is incentivized to put in twice as much work (i.e. spending more time with the client, making the place much more presentable, etc).
- surrealize 8y agoAs more agents enter the business, a lot of their time and effort ends up going into getting clients in the first place. You end up with lots of agents spending more of their time trying to get business, with actual home-sales work taking up a smaller proportion of their time. But the increase in home prices is enough to make up for the decrease in the number of homes sold per agent. Point being, an increase in home prices, and the resulting increase in commissions (in dollar terms) doesn't necessarily result in any benefit to clients.