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I agree that a good realtor can provide a lot of value. But the amounts of money involved are crazy. Much too high. The average sale-price for a house in my nei
by nrclark 3y ago
I agree that a good realtor can provide a lot of value. But the amounts of money involved are crazy. Much too high. The average sale-price for a house in my neighborhood is about 1.4M these days. At a standard 3% commission, that's $42k each for the buyer's realtor and the seller's realtor.
Yes, they both provide value. But $42k of value each? At that price, they only need to sell one house a month to have a $500k gross income. And they definitely aren't doing a month of fulltime labor to close my sale.
I think that $15k is probably fair for the amount of labor that a realtor provides. But the whole realtor system really is a huge predatory monopoly, and they are squeezing too much money out of the market. And now they're starting to get to the "find out" part.
- medvezhenok 3y agoThey're not actually getting $42K out of that transaction as someone pointed out in another comment. 30% goes to the brokerage, 20% goes to taxes. Add NAR fees and team split, and the real estate agent is getting maybe 25-30% of the commission. So at the end of the day they are pocketing ~13K (versus 42K). It is fair to ask whether the brokerage deserves their 30% cut.