What's with Commission???
I respect the need for anyone to make a living and work hard. But, the real estate business, as I am learning, is extremely monopolized and incredibly overpaid. To collect a % of the sales price is rediculous. The same service, provided for different houses, nets hugely different fees. This makes no sense whatsoever. Some agencies/brokers cap the fees, I realize, and even fewer work on a flat rate (makes much more sense). But, for the most part, you ask for a percent of the sales price which most often is an outrageous fee for the preparation and work involved.
I quickly learned of this outrage when an agent asked to show my for sale by owner home and brought a contract for me to sign that said she gets a percent of the sales price. For what??? For walking through my house and telling the buyer all about my house that she knows nothing about??? I told her I didn't think that was fair and she seemed taken back by the fact that I even took the time to read over what I was signing much less questioned the fee. Let's say she had to spend 4-6 hours or so setting up the inspection, appraisal, etc etc. Okay, so how much per hour is that??? I went to school for 10+ years, have people's lives in my hands, and have literally hundreds of thousands of dollars in educational debt and I don't make that much.
I'm not surprised that the real estate business has created this scheme. What surprises me is the fact that the public lets them get away with it. I hope people start becoming more aware of this fleecing and start to use FSBO and other avenues more to force a reasonable behavior from the real estate business. It makes me sick every time I drive by an agency that has a huge luxurious building built by millions of dollars of people's hard earned equity that they've skimmed like a drug dealer. I would be happy to hire an agent/broker if they actually spelled out their fees like any other reputable business. As it stands now, I'll do everything I possibly can to keep from using a real estate 'professional' unless they are flat rate or have some other reasonable system of charges. You can continue using the MLS like a mob boss, but I have a feeling (and I hope to God) that something similar will replace this as a good source of potential property for a buyer.