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That's not how realtor fees work. The seller pays them. And plenty of real estate changes hands without the involvement of real estate agents. What you've de

That's not how realtor fees work. The seller pays them. And plenty of real estate changes hands without the involvement of real estate agents. What you've described is a worst-case scenario which completely ignores the fact that homeowners have a real asset they can then sell. Further, any of this handwaving about all the fees of ownership apply just as well to whoever owns the property you're renting -- all of which costs they simply pass to the renter. There is no world where renting is as cost-effective as ownership over the long term.

gruez 5y ago
>That's not how realtor fees work. The seller pays them 1. even if you're not paying them, it's baked into the price. 2. OP mentioned buying and selling (for a loss), so he'll eventually have to pay it 3. if you search around, realtor fees are customarily at 6% for the seller, so my estimate of 2.5% for both sides is actually underestimating it. > What you've described is a worst-case scenario which completely ignores the fact that homeowners have a real asset they can then sell. I'm using the case that OP himself provided. >Further, any of this handwaving about all the fees of ownership apply just as well to whoever owns the property you're renting -- all of which costs they simply pass to the renter. There is no world where renting is as cost-effective as ownership over the long term. Right, I'm not claiming that you're not throwing away any money when renting, just that it's nowhere the full rent, and the numbers aren't as rosy as OP initially suggested (ie. you can lose $144K house value in 4 years, and still break even).