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https://www.cbsnews.com/news/nar-lawsuit-verdict-real-estate-agent-commissions/ Can anyone clarify why we need real estate agents in US? Realtor.com almost has the same listings as Redfin. So unlike in Asia different agents will have their own listings, here everyone can find every listing easily. Basically there’s no information gap.
It would be fine to pay 1% to each seller and buyer's agent, not 3%+3% we have to do now. Actually, these days 2.5/2.5 split is very common
Even 1% for buyers agent is way too much
Agents were needed in pre-internet era. Not needed anymore. But there is lot of money to be made in commissions so beneficiaries will do everything they can to protect it. That’s why for sale by owner properties and buyers without agents are given hassle by other agents.
Buyers agents are essentially worthless - and definitely not worth 2-3% commission of the gross house price. They can help a novice understand the neighborhoods but most of that can now be done online pretty easily. Sell side I think does provide good value. Selling can be a headache - improvements, cleaning up, marketing, open houses, negotiating offers, etc.
Buyer's agent value is in pulling prospective house inspection reports and giving their opinion on whether to proceed with this house or not. That alone is worth something. Most consumers don't know (and perhaps don't want to know) enough to tell excellent house from one with hidden problems.
Every buyer agent will tell you to overbid, wave contingencies, buy a POS house, because they want to sell faster and get their commission. They have no incentive to be on “your side” financially.
Pro-tip: if you’re a buyer, find yourself a flat fee agent for the paperwork. If you’re a seller, get a housecleaner, set up your own house and find yourself a seller agent with a large rebate
Why do we pay agents a percentage and not a flat fee? Why not x$/hour of their work? Is it 5x more paperwork to sell/buy a 5M house vs 1M house? A commission would make sense only if agents personally were providing assurances against issues in the house (related to purchase) similar to warranty or insurance.
You realize commission is negotiable right? Just like salaries....
Unfortunately, removing agent fees will not drop housing prices. They'll just increase how much the seller makes from the transaction.
The prices will come down. Because right know my list price and min acceptable price includes agent commissions. And if those commissions are gone then those number will come down.
The selling price is the maximum price a buyer is willing to pay for the house. That's not going to change just because there are fewer commissions, a desperate buyer will still overbid.
Meanwhile Canada RE people sweating... 😱😱
Realtor payments should be flat, not percentage based.
Will this drive lower price range house sales, since more expensive houses deals are harder to close.
I'm not sure it's that much harder. Anyways, how about log(price) then?
I bought off market from a mutual acquaintance and represented myself, the seller had an agent. The agent got 3% (35k) from the seller to do nothing except setup escrow, use standard forms and answer a few questions (aka ask their broker to answer questions). What a ridiculous gig.
I am not pro-agent, i used agents for my more than 4 transactions like a rubber stamps after understanding the market. Yet I will not agree that realtors are redundant, definitely NOT for first time buyers. Redfin agents are not there yet.
Like lennar eliminated
What do you mean by redfin agents not being there yet?