patrick.net
An Antidote to Corporate Media
1,364,750 comments by 15,735 users - HANrongli, Maga_Chaos_Monkey, mell online now
Why do realtors try to claim 6% ownership to all property in the U.S.?
2012 Jun 6, 1:09pm 57,377 views 114 comments
Comments 1 - 5 of 114 Next » Last » Search these comments
elliemae
@
2012 Jun 6, 1:14pm
since realtors aren't necessary and don't do shit, bypass them if at all possible.
everything
@
2012 Jun 6, 1:48pm
Realtors will steer buyers away from FSBO, the last realtor that stopped by told his buyers the cedar siding on my house was asbestos, I don't say anything, between him and the buyer knowing it all, they can pay more, the realtor makes more, the banks make more, it's all good.
Really, people still pay 6%... that so 1990's.....
Exactly, I've seen realtors offering 2% commissions in my neighborhood. Then again, the homes are all $300k-$500K so that's still a sizeable chunk of change. I think REDFIN's commission is 4.0% with a $5500 minimum... So your house has to be atleast over $150K to start seeing real savings.
But once again, the 6% and 7% cost of selling is a myth that is perpetuated by housing bears.
6% of nothing = "0"
Housing,Autos and pretty much anything optional will have to be reset because Joe/Jane Smith cannot afford to keep them up anymore.
Example A:
2012 Silverado ...Joe see's & Joe likes but he brings home $32K a year and when he looks at the $44K sticker he remembers the home ATM has been shut down since 2008. Silverado sits on lot till paint starts peeling from exposure.
Example B:
2300 SF home...Jane lust after it because #3 is on the way and they have outgrown the 1600 SF , 2 bedroom pad they now own. Jane looks at the flyer and rubs her forehead when she see's the 220K asking price. Jane knows they cannot afford more debt on the 32K Joe makes even if she goes to work making 32K to suppliment Joe's salary... The childcare would eat up her earnings.
Joe & Jane can afford nothing new...NOTHING my friends...and 80% of the American public see Joe & Jane every morning when the look in the mirror.
Time for a reset...
Realtors claim 6% ownership to all property in America for the same reasons that slimy lawyers claim 33% ownership and greedy politicians claim 75% ownership of all property in America (25% Federal tax + 5% State tax + 45% Death tax = 75%)
Realtors are kinda dumb to work for so little.
Comments 1 - 5 of 114 Next » Last » Search these comments
If competition could be restored to the home buying process, transaction costs could be greatly reduced which would connect more buyers and sellers with deals. This claim to 6% ownership of all real-estate causes the market to be sticky, fewer transactions occur as a result. More sales would occur if there wasn’t a 6% barrier between the seller and the buyer, and the purchase price would be lower for the buyer as well.
The housing market would recover faster if home deals could omit this expensive middle man. People should not revert to realty offices when thinking of buying or selling homes. Individuals need to default to internet sites like Zillow.com or other housing sites in order to reduce the market collusion from realtors. The internet is a great device for competition! Now people need to realize that websites can be used to organize home buyers and sellers just like Amazon, Craigslist, or Ebay, without the expensive middleman.
Many people argue that buyers do not pay the fees to the realtor so they should not care if the realtor gets paid. Well due to the fungibility of money, the buyer could have bought the house for 94% of what they paid because that is what the seller was willing to accept for the house. This makes it obvious to see that the seller nominally pays for the realtor fees, but the buyer, in real terms, pays about 6% too much for the home. Not realizing that a realtor’s 6% could be negotiated is a flaw that must not be overlooked.
#housing