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Old Today, 02:53 AM
 
Location: San Diego
512 posts, read 958,371 times
Reputation: 219

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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; Today at 03:14 AM..
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Old Today, 02:55 AM
 
56,422 posts, read 58,839,796 times
Reputation: 36523


guess that says it all
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Old Today, 06:05 AM
 
Location: The Triad (NC)
24,298 posts, read 52,406,422 times
Reputation: 24400
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 Today, 06:30 AM
 
Location: Central Mexico and Central Florida
4,521 posts, read 1,864,114 times
Reputation: 6439
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 Today, 06:36 AM
 
341 posts, read 300,848 times
Reputation: 858
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 Today, 06:39 AM
 
3,583 posts, read 1,515,007 times
Reputation: 4670
It is called having powerful lobbyists.
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Old Today, 06:42 AM
 
Location: Cary, NC
28,932 posts, read 51,319,392 times
Reputation: 27170
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; Today at 07:12 AM..
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Old Today, 07:12 AM
 
Location: San Diego
512 posts, read 958,371 times
Reputation: 219
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 Today, 07:55 AM
 
Location: Brentwood, Tennessee
33,837 posts, read 32,445,972 times
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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 Today, 07:59 AM
 
Location: Towson, MD
143 posts, read 55,824 times
Reputation: 573
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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