5 ms·
My problem has always been with the percentages used on certain things; like commissions. Just make it a flat fee. Things that require agent's time like open ho
by conductr 3y ago
My problem has always been with the percentages used on certain things; like commissions. Just make it a flat fee. Things that require agent's time like open houses; bill for that. It's the essentially the same effort on a $100K house and a $500K house and a $1M house. Maybe once you get to $5M+ houses the fees need to increase since this is a different class of RE with much smaller pool of buyers. But still should be fixed amount and not percentages.
In my area, since I bought my first house 10 years ago house prices have 4X'd. I don't think the wages of most professions have, the demand for housing makes it easier to sell, so why should agents be making 4X more?
- salamanderss 3y agoYeah it also causes the problem of making it a real pain in the ass to buy cheaper plots of land. Realtor often don't give a flying fuck about the sale of stuff under 50k, not worth it for them. Can be hard to get representation.
- semiquaver 3y agoIs there anything else in real estate that’s normally priced in terms of percentages other than the realtor cut? I’m not aware of any.
- sizzle 3y agoThis was the business model for PurpleBricks that exited the US market after failing to disrupt the Realtor mafia in control.
- firstplacelast 3y agoMaybe we should all learn from real estate agents and price our labor at a % of the median home price within 1 hour commute to our offices? While I do think RE agents are overpaid in expensive markets, I also kind of think...good for them. Pegging your wages to your most expensive living cost is a supremely intelligent move.