More on Real Estate Commissions
There’s a recent article (& 300+ comments) in the Washington Post about commissions, the topic everyone always loves to debate. You may also find my analysis from 2014 interesting.
Do you think anything has changed in terms of consumer behavior/adoption for discount services in the last 2 years?
Random question: why do all For Sale by Owner signs look like crap? Surely, if you’re trying to sell a $300,000 house you could spend more than $20 on a crappy sign for your yard?
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Ben Kubic
Posted at 12:16h, 18 AprilIn my conversations with our clients and other homeowners, there is a prevailing sense that 6% is way too high, but the average consumer has a bad perception of “discount” brokers, so they pay the premium because they don’t feel like they have any other options.
Obviously I’m biased in this discussion
Drew Meyers
Posted at 12:31h, 18 AprilThat seems to validate my guess — consumers think it’s too high, but are worried about getting screwed on a crappy deal by going it alone so end up going traditional route.
Drew Laughlin
Posted at 19:18h, 18 AprilI think this all comes back to the industry as a whole. We do a terrible job explaining exactly what we do for a living. I have clients that get it, even some from sales job themselves, but the vast majority think we’re over paid. Most agents I’ve run into don’t know how to walk clients through the process to show the massive amount of closing a transaction entails.