Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 409 votes
Many sellers understand that they need their expertise, just like I would a mechanic or plumber but do they really provide say $20, 000 worth of service? I get the fee is probably split between the buyer, seller and probably the real estate companies they each represent but this fee seems really high
It's crazy to me how they earn in percentage. A house that sells for 1 mill vs a house that sells for 200k involve pretty much the same amount of work. They should earn a set amount in my opinion.
I guess you can apply the same logic when investors do poor rehab work and want top dollar. How would you like it if you were capped at $1000 profit for every flip?
Everyone needs to eat at the end of the day. RE Agents, Brokers, Lenders, etc.. have families to feed and provide for. Commissions drive sales. If houses were like selling cars, then maybe a flat fee would be beneficial. But unfortunately our landscape is 10+ realtors fighting for 1 listing.
Going to a flat fee based system, would decrease the amount of good agents in the industry. No one is going to go through the headache for a $1000. At that point you are better off working at McDonald's and letting buyers and sellers struggle on their own.
Being on the lending side, the real estate transaction is not easy whatsoever. There are so many moving pieces such as appraisal, inspections, contingency periods, buyer loan qualification, clear title, repairs, insurance coverage, etc...
A good realtor is basically your 1 stop shop. Yes you can go a look for a good insurance agent, Title officer, Attorney, Lender, and Contractor, but your average buyer is not in the business of buying and selling real estate. Would you rather rely on yourself (the one that has very little experience buying homes) or someone that has bought and sold more than 100 houses a year?
Plain and simple, you hire a realtor for their experience, connections and reputation. Otherwise, everyone and their grandma would be a real estate pro.
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