https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html
Been seeing the headlines and I applaud making this monopoly go away. 6% is my opinion is too much especially when you get to higher priced homes.
6% on 250k = $15,000
6% on 500k = $30,000
6% on 750k = $45,000
6% on 1 mil = $60,000
That being said, I was a realtor at a very young age working on 100% commission. Yes this gets split between sellers agent and buyers agent(3% each) and then depending on your arrangement with your broker, if your new you split 50/50 with broker office(PA Law says you can't be a real estate agent without hanging your license in a real estate brokers office who is supposed to supervise you). By the time the agent gets their cut in the first case its $3,750. That being said, there are too many hands in the pot and the seller has to pay for it all. Now, in my opinion its the same effort to list and sell a house, the sellers were always at the mercy of the agent because of the multiple listing service which is owned by the local board of realtors.
In my opinion, services should be a flat fee depending on what the seller wants. Usually listing it in the MLS(which there was a fee) is enough to get the info out to the other agents(now there are new services buyers use before going to agents, like realtor.com, zillow, etc, which I am guessing there is a fee). I have sold 2 houses in my lifetime and paying the $30K to the realtor(that was selling and buying agent) kind of pissed me off because I know the little effort that was put into it. Then at settlement they try to charge me extra for doc fees which is crap as well. Real Estate is an industry that needs disruption. Say an article that the UK is going on flat fees. Also, in this day an age of the internet, do we really need real estate agents any more? Educated sellers/buyers can pretty much arrange everything themselves. Agreement of Sales can be automated, schedule the title agency for title search and settlement, etc.
There are probably agents on here I just made angry but I get angry paying a large chunk of my equity to you for things I can do myself or in an automated fashion with today's technology.
Been seeing the headlines and I applaud making this monopoly go away. 6% is my opinion is too much especially when you get to higher priced homes.
6% on 250k = $15,000
6% on 500k = $30,000
6% on 750k = $45,000
6% on 1 mil = $60,000
That being said, I was a realtor at a very young age working on 100% commission. Yes this gets split between sellers agent and buyers agent(3% each) and then depending on your arrangement with your broker, if your new you split 50/50 with broker office(PA Law says you can't be a real estate agent without hanging your license in a real estate brokers office who is supposed to supervise you). By the time the agent gets their cut in the first case its $3,750. That being said, there are too many hands in the pot and the seller has to pay for it all. Now, in my opinion its the same effort to list and sell a house, the sellers were always at the mercy of the agent because of the multiple listing service which is owned by the local board of realtors.
In my opinion, services should be a flat fee depending on what the seller wants. Usually listing it in the MLS(which there was a fee) is enough to get the info out to the other agents(now there are new services buyers use before going to agents, like realtor.com, zillow, etc, which I am guessing there is a fee). I have sold 2 houses in my lifetime and paying the $30K to the realtor(that was selling and buying agent) kind of pissed me off because I know the little effort that was put into it. Then at settlement they try to charge me extra for doc fees which is crap as well. Real Estate is an industry that needs disruption. Say an article that the UK is going on flat fees. Also, in this day an age of the internet, do we really need real estate agents any more? Educated sellers/buyers can pretty much arrange everything themselves. Agreement of Sales can be automated, schedule the title agency for title search and settlement, etc.
There are probably agents on here I just made angry but I get angry paying a large chunk of my equity to you for things I can do myself or in an automated fashion with today's technology.