Quote:
Originally Posted by Brandon Hoffman
A few qeustions:
1-What is a fair amount for a fee or commission for agents?
2-Is buying a house really comparable to planning a vacation?
3-Who do you think paid for that technology you're using?
4-There is a lot more to pricing a home than just the price/sf.
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1. 1-2% of the gross is all the money
2. Depends on your vacation? I have friends that spend more annually on travel than I did on my first house!
3. Do you really believe realtors funded sites like zillow? Zillow farms public data bases (even has a link to their data sources in the property description!).
4. Do you realize that you made no sense? Price is always based on sq ft! I've never seen a realtor that doesn't start with neighborhood comps, followed by price per sq ft then multiplying that by your actual sq footage. None of this BTW is any trade secret, so again what are they bringing to the table?
Hey if you are a current realtor crushing it, fine.....ride the wave of success but the business is a broken model. Just like buying a car doesn't need a local salesman (email, negotiate, go in and sign the paperwork, drive away or even let them deliver it).
Fact is there are too many waiter/bartender/soccer mom/part time realtors that are making no money and hoping to be a "millionaire producer" like on TV. The market will surely change and thin those types out. It is a mediocre living for 85% of the realtors out there, the other 15% are killing it.
https://www.homelight.com/blog/how-m...ors-in-the-us/
2mm realtors in the US, 1.4mm joined the MLS..............yet there were only 5.5mm transactions in 2017. Bascially one realtor for every 2.75 sales for every realtor in the US. Now clearly nobody is holding out to close less than 3 deals a year but it also shows there are way way way too many realtors.
The internet has changed many industries, the high commission is going to be the bullseye for those trying to change the industry. You book flights/hotels/car rentals yourself on websites like Expedia (eliminating the travel agent), buy cars online from local dealers, Amazon sells everything under the sun for less than local retailers.
The title agent does all the "official work" with the documents/loans etc yet they don't get paid as much as the realtor. How can you believe that the realtor's days aren't numbered (too many, too high commission, actually not needed by law to get a sale done).
https://en.wikipedia.org/wiki/Zillow
Interesting where the founders of Zillow came from:
Zillow Group, Inc., or simply Zillow, is an American online real estate database company that was founded in 2006,[4] and was created by Rich Barton and Lloyd Frink, former Microsoft executives and founders of Microsoft spin-off Expedia, Spencer Rascoff, a cofounder of Hotwire.com, David Beitel, Zillow's current chief technology officer, and Kristin Acker, Zillow's current senior vice president of experience design