5 ms·
what choice do they have, though?
by commandlinefan 6y ago
what choice do they have, though?
- qeternity 6y agoAh, the hallmark of a functional marketplace.
- lotsofpulp 6y agoIn the US, no one is forcing anyone to use a real estate agent.
- Domenic_S 6y agoBefore the zillow/redfin days the only way to see houses for sale was to physically observe the for sale sign or look in the newspaper. The NAR keeps a tight fist around the MLS where for-sale homes appear. Even with all the online information there's plenty of "secret" info in the Realtors-Only MLS notes. The information asymmetry is absolutely bonkers in real estate.
- lotsofpulp 6y agoI fully support more transparency and accessibility of information. I think governments should make the details of real estate transactions easily searchable, and most do in the US! But if a group of people want to organize and maintain that info in a certain way, and have their notes, and get paid for doing that, is that not their right?
- Robotbeat 6y agoIs it their right to restrict info by leveraging IP law on other people? They use that IP law to grant themselves information asymmetry to gain 6% commissions whereas many countries have commissions half that. IP law is not a natural right but is instead granted by the government to try to enhance the common good. So therefore whether it is their “right” is somewhat contingent on their use of IP law actually benefitting the nation. If it’s not beneficial and is just increasing fees, then it should be curtailed.
- lotsofpulp 6y ago> Is it their right to restrict info by leveraging IP law on other people? Did they create/curate the info? If so, then yes, just like anyone else is able to use IP laws. > They use that IP law to grant themselves information asymmetry to gain 6% commissions whereas many countries have commissions half that. No, they use supply and demand for their services to collect 6% commission. And it’s very negotiable, also showing that the amount a real estate agent charges is due to supply and demand. I’m only familiar with the way real estate agents work in the US, so I can’t comment on how it works in other countries. But all I can say is, in my experience, the sales history data is all available on the government website, and otherwise, you’re paying for the marketing and whatnot. If you don’t like the price, then negotiate lower, and if that fails, don’t pay it and do the work yourself.
- lupire 6y agoThey use a cartel/trust to collect 6%, which is only legal because it is possible to negotiate a discount and it's hard to prove that the cartel is freezing out discount agents.
- whimsicalism 6y ago> No, they use supply and demand for their services to collect 6% commission. And it’s very negotiable, also showing that the amount a real estate agent charges is due to supply and demand. Actually, no. There is extensive evidence that real estate commissions are not tied to supply & demand due to collusion in the marketplace. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3450767 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3450767
- Domenic_S 6y agoI think it probably is their right, yes. I was responding to "nobody's forcing you to use an agent" which is technically true, but functionally you're operating at a substantial disadvantage if you do (don't).
- datavirtue 6y agoThat is anti-free market activity. Unethical by US standards.
- deleted 6y ago[deleted]
- mattnewton 6y agoThis, I hired a buyer's agent simply because even sites like Zillow had huge gaps when trying to put together comparable houses on an offer. The information alone was nearly worth the entire commission for me.
- twiddling 6y agoSome neighborhoods have houses listed in the "informal markets" ( community of like minded brokers who wish to maintain the "feel of the place")
- bena 6y agoI think this is often the case where the only real product is information. If you and I have the same information as the agents, then their use goes down a lot.
- whimsicalism 6y agoThis is not true - if the other party is using a real estate agent, they might refuse to work with you if you are operating independently. This is how collusion in the real-estate market functions. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3450767 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3450767
- lotsofpulp 6y agoIf you're a buyer, no agent is going to refuse you since they're getting paid by the seller. If you're a seller, you might very well get fewer agents bringing their clients to you. You're free to advertise that you will pay a commission to entice agents though. And the buyer is also free to side step the real estate agent or tell their agent they will make up for commissions from non agent represented sellers. It's 2021, using Redfin/Zillow/Trulia/Craigslist/Realtor.com is trivial. I foresee less and less opportunity for collusion as information becomes more and more accessible to everyone.
- datavirtue 6y agoThere is all kinds of bullying and strong arming and threatening going on. I have gotten it from many different realtors. They are worse than dentists and lawyers.
- abdabab 6y agoI can understand the comparison with lawyers but why dentists?
- twiddling 6y agodon't get me started on title insurance
- lotsofpulp 6y agoIt’s very easy to sell or purchase a home without an agent. You can contact the owner, and get all the paperwork done with a lawyer who deals in real estate transactions. There are usually signs that say “For Sale By Owner”.
- jandrese 6y agoVery easy might be overstating it. Arranging tours with the homeowner individually is a hassle. The reason you hire a realtor is because they have access to the key boxes. A home is a huge purchase, I don't know how many houses a typical person looks at before deciding, but for me it was over a dozen.
- lotsofpulp 6y agoI meant easy as in there’s no artificial hurdle. The example of arranging tours displays that agents do provide some value. People like to complain about agents, but they’re free to stick a sign on their yard, purchase online ads, and otherwise do the leg work.
- dionidium 6y agoIt's also easy to forget that first-time buyers won't have any sense for what's normal, expected, or required during the process. Obviously, you can research this yourself, but 1) there's no substitute for experience; and 2) you're paying a professional because they already know this stuff and you presumably have other things to do.
- datavirtue 6y agoYou can become an expert in the time it takes to research and plan a vacation.
- throwaway0a5e 6y agoIt's very hard to find a home you want to purchase without access to the MLS system It's very hard for potential buyers to become aware of the house you have for sale without it being in the MLS system Realtors control access to the MLS system. See where I'm going with this?
- throwaway7033 6y agoThey could buy directly from the seller; that's how I got my condo.