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I'll try to rephrase it: 100x the comission might have 100x the competition. As a seller of the house, you pay more but you also get better agents.
by conanbatt 8y ago
I'll try to rephrase it:
100x the comission might have 100x the competition. As a seller of the house, you pay more but you also get better agents.
- JamesBarney 8y agoYou're not getting a 100x better agent, and most of the best i.e. most successful agents I've seen weren't necessarily better negotiators, better at contracts, or more responsive. They were specifically better @ marketing and selling themselves. The most successful agents I know close houses twice as fast as other agents. But they close them twice as fast as other agents because they're listing them under market value. My wife was a real estate agent for 5 years but she got out of it because all of the most successful agents she met were more successful in ways that hurt the client not helped them. Examples - convincing their clients to settle for homes quickly, convincing clients to list their house less than market value, weeding out easy clients.
- conanbatt 8y agoMy wife is also in the real estate market: the reality is that people's incentives are not maximized on house value, they also care about other things , like safety, patient, attention, etc. It is what it is. RE is not a perfect market because goods really cant be commoditized. I reiterate my point with one more argument: the average income of a realtor is very low: they make very little money. The number of active realtors is almost perfectly correlated with house prices: that means a highly competitive , and thus relatively efficient, system.