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The other big win is the amount of money in Real Estate. When most transactions have fees on the order of 6%, there's a lot of money sloshing around to pick up
by secabeen 13y ago
The other big win is the amount of money in Real Estate. When most transactions have fees on the order of 6%, there's a lot of money sloshing around to pick up.
- ezl 13y agoTo put a number on it: 6% transaction fees you're talking about are probably in home sales. About 800B a year transacts in the US in home sales (existing home sales data: http://www.realtor.org/sites/default/files/reports/2013/embargoes/ehs-12-19-ppikapwltp/ehs-11-2013-overview-2013-12-19.pdf http://www.realtor.org/sites/default/files/reports/2013/emba...). In practice, that 6% number often is a bit lower for the brokers. Also, FWIW, on top of broker fees, you'll be paying attorneys, government taxes, etc. In Chicago, to transact in and out of a house, you should expect to pay between 10 and 11% (so if you buy a house for 100k and sell it for 110k, you will break even if you're lucky).