Maybe high realtor commissions will come down now. Would you really care if your U.S. realtor shows up in a Civic instead of a Cadillac?
Maybe high realtor commissions will come down now. Would you really care if your U.S. realtor shows up in a Civic instead of a Cadillac?
Realtors getting a percentage commission has always been a scam,
I just sold my house, and paid the realtor $39k for 2 weeks of work (likely only about 12 hrs of actual work). Scam is putting it lightly.
Compared to what? A flat rate?
Yeah, or a scale based on actual effort, not purely his much a home is worth.
A system which aligns incentives would be one where the commission is based on a percentage of anything above a certain sale price. This way, the realtor is incentivized to find a buyer at the very least at that price, and to find the highest possible price to get as much commission as possible.
What is the alternative?
Fixed wages like nearly every other industry?
So you go house shopping and you better find a house you like soon, or else you’ll have to pay your realtor by the hour for all the Saturdays you spend shopping?
Sadly, I don’t think there’s a good way to compensate realtors.
I feel like hourly with a fixed sale bonus would be fine for buyers.
$50/h at the location (maybe a travel fee for places far away from their normal location), and $5000 for a successfully closed deal. All buyer paid, that would mean that the realtor gets paid for work done, and but the closing bonus means that they don’t have as much of an incentive to keep taking the customers to crappy places to keep the hourly going.
Selling Realtors should really negotiate a fixed figure and a bonus that goes down the longer it takes to sell, this could encourage them to suggest lower prices on homes I guess, but it’s ultimately the owners decision to pick a price and the Realtors choice if it’s worth the effort to sell at that price