Why seller pays so much to buyer's agents?
Logic is very simple: agent just have to open the door and push papers here and there. 2-3% transaction fees on 2-3 M houses of bay area is insane amount of money.
I would say if commission is needed it has to be fixed value and not the %. Why would anyone pay different amount for SFH and condo when provided service is same? If you think 2-3% is small thing, try googling 'Apple Vs. Qualcomm' see how they fight for few percentage.
In fact, in this hot market nobody needs any agent. Neither seller's nor buyers. Anything can be sold in this market. You only need agent to sell 100yr old shacks or burnout houses, hack those also gets sold over LP in these days.
This industry is ripe for disruption and given our tech background we should seriously think about the solution here.
Very fine article on this:
https://johnfulton85.medium.com/why-should-sellers-have-to-pay-their-buyers-agent-s-fee-b5fcec2f0cb4
Why should sellers have to pay their buyerโs agentโs fee?
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But then now I have two little kids and don't have the time to do it.
No body likes tweaking with them and paying boatload of cash. They will be out of market and out of business soon
You also typically canโt gain access to a vacant or occupied house using your wholesale agent, and if there is no seller agent, you would need to owner to be present to show you the house, and owners are also not typically open to engaging directly with sellers like this.
Once the house is under contract, the seller agent or buyer agent would again need to provide access to the house to let in vendors like appraisers or home inspectors.
Added to that the interactions required with the title company to provide them with the info they need.
Donโt know if does justify the 2 to 3% price, but if you are willing to do all this, but by all means you can list the house as FSBO - For Sale By Owner
https://listwithclever.com/real-estate-blog/how-to-sell-a-house-by-owner-in-california/