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Liquidity is a huge problem in real estate. Right now, every single person forfeits 5-6% of their home value every time they exchange homes. That's $20k on aver
by throwaway_4ever 4y ago
Liquidity is a huge problem in real estate. Right now, every single person forfeits 5-6% of their home value every time they exchange homes. That's $20k on average. Reducing the spread on homes by providing liquidity would be a huge financial boon to all classes except realtors.
- notch656a 4y agoIs that true if you sell your home yourself? I've never bought a home, but I know I can transfer a title to a vehicle without forfeiting anything beyond the sales tax and the $50 title fee. Is there no way to sell/buy real estate directly like that using cash transactions direct between parties?
- throwaway_4ever 4y agoNo, I misspoke by saying “every single person.” It’s true that direct off-market sales can avoid paying realtors and two parties agree amongst themselves. Depending on jurisdiction it’s around $2k for all the title transfer, notary, and other fees. But this is quite uncommon.
- yunohn 4y agoIt’s only uncommon because people know they can get higher bids in the open market, and use a broker to facilitate deals. If housing prices weren’t always going up, that could change.