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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!).
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.
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).
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."
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.
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.
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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