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Old 01-10-2018, 01:53 AM
 
Location: San Diego
774 posts, read 1,161,758 times
Reputation: 452

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The great realtor rip-off | The Economist basically argues that the reason realtors get paid thousands of dollars per hour is because the whole thing is a cartel (duh!).

Opinions?

Last edited by max.b; 01-10-2018 at 02:14 AM..
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Old 01-10-2018, 01:55 AM
 
64,303 posts, read 65,895,436 times
Reputation: 42785


guess that says it all
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Old 01-10-2018, 05:05 AM
 
Location: The Triad (NC)
26,733 posts, read 57,664,663 times
Reputation: 29058
Quote:
Originally Posted by max.b View Post
What do YOU argue?

Quote:
Opinions?
The specific dollar amount of a commission is mostly about the specific dollar amount of a house.
Want to pay less in commission? Fair enough; all you have to do is sell (or buy) at a lower price.
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Old 01-10-2018, 05:30 AM
 
Location: Central Mexico and Central Florida
6,934 posts, read 2,995,913 times
Reputation: 9718
I think real estate agents will soon go the way of travel agents. I bought our last house FSBO and hope to sell this home FSBO. It's not rocket science. More and more of the public is open to FSBOs and/or discount DIY real estate listing companies (that will get you in the MLS for a reduced cost with very little service, which is a fair trade IMO).
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Old 01-10-2018, 05:36 AM
 
384 posts, read 353,081 times
Reputation: 1005
Same Same stuff that's been said thousands of times before.


But, they did come up with a creative new idea.


"A third theory is that the industry is less competitive than it looks. In most areas a few big brokers handle most transactions. They set high fees, which lure ever more people into the profession: between 1998 and 2005 the number of members of America's National Association of Realtors grew by 67%. These agents waste time competing with each other for the exclusive right to sell each home, sapping productivity."


i.e. more agents lead to less competition....
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Old 01-10-2018, 05:39 AM
 
5,445 posts, read 2,297,816 times
Reputation: 6731
It is called having powerful lobbyists.
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Old 01-10-2018, 05:42 AM
 
Location: Cary, NC
31,536 posts, read 55,195,852 times
Reputation: 30104
Choice.
People CHOOSE to pay agents the rates they seek.
There is fee competition in nearly every US market, including capable agents.
Sort of goofy article with minimal insight.
1. Average commission is 5% or 5.4%, but 6% is "standard?"
Goofy.
2. Blabs the old saw about the average agent closing 7 transactions yearly. Without research or insight.
Goofy, to the point of being a lie.

But, pop goofiness may sell magazines and ads.
Notice that this drivel got shared on CD, as if it is meaningful.

0.5%--1% legal fees?
$7000 legal fee on a $700,000+ sale, + 17.5% VAT on Fees?
Ain't the devil always in the details?
https://www.globalpropertyguide.com/...m/Buying-Guide

Last edited by MikeJaquish; 01-10-2018 at 06:12 AM..
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Old 01-10-2018, 06:12 AM
 
Location: San Diego
774 posts, read 1,161,758 times
Reputation: 452
Quote:
Originally Posted by MrRational View Post
What do YOU argue?
I don't know why you care about ME, but what do you think "DUH" means?
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Old 01-10-2018, 06:55 AM
 
Location: Brentwood, Tennessee
38,776 posts, read 37,497,915 times
Reputation: 73209
Quote:
Originally Posted by max.b View Post
The great realtor rip-off | The Economist basically argues that the reason realtors get paid thousands of dollars per hour is because the whole thing is a cartel (duh!).

Opinions?
Read again.

The article says it USED to operate like a cartel.

Sooo ... anything else to add?

Also, I'm not a realtor, but I used to be an editor, and that article is very poorly written. He greatly oversimplified the UK buying process and left out some relevant tidbits about the US process.
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Old 01-10-2018, 06:59 AM
 
Location: Towson, MD
187 posts, read 91,380 times
Reputation: 810
Note the article is from May 5, 2012. Much has changed since then. The Economist has the best journalism on the planet, but this is old news.
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