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> removing realtors will itself make it more profitable to invest in real estate Perhaps this statement should be restricted to just say the costs of investing

• matt-attack 3y ago
  They seem like equivalent statements. What was the point of rephrasing?
  • Mtinie 3y ago
    I suspect it’s because profits only exist in an “up” market while reduced costs provide benefits whether the market is up or down.
  • klysm 3y ago
    Profit is up to other factors. Lower costs means you need less revenue to make a profit, but of course it does not guarantee it
• koolba 3y ago
  Lower transaction costs lead to a more liquid market as the cost of entry and exit are both reduced. Every body wins except the middle men.
  • klysm 3y ago
    Agreed, but that doesn’t translate to profit universally.
• AnthonyMouse 3y ago
  > Perhaps this statement should be restricted to just say the costs of investing in real estate would be reduced. Small difference I know, but I think it’s an important distinction. It's especially important in this case because of the implications: One of the parties who "invest" in real estate is construction companies, who hold the real estate while they're building it. Lowering their costs makes them more profitable, so you get more construction -- which lowers housing costs by removing the realtor's vig and by the increase in the housing supply.