High Realtor Fees, Can someone explain?

[Rachel Weiss]

Hi everyone, We are new flippers in desirable towns where remodeled homes sell for 1.8m - 2.5m or more. I am having trouble understanding how paying the realtor 100k in fees on the resale alone (not including what they get paid when they are used on the buy) is acceptable. I searched other threads on BP about this, and the explanations were about a 400k home, for example, that works out to a modest amount per hour. However, this explanation no longer makes sense when it comes to homes that are much more expensive. Why is it not common to negotiate flat fees that are more reasonable? Why is it not enough for a realtor to get paid $10k for their service? I think that's a nice amount of money for their work. There is no other  profession where someone makes so much money for doing so little. I find it difficult to wrap my head around, and I'm looking for a better solution. 

I understand they service builders/flippers by advising them on what's best for their investment and managing the selling process. Still, even lawyers don't pay such high fees for professional time spent with clients.  

[Jay Hinrichs]

good luck getting an agent that works the LUX market for 10k..

Now if the market is SO good that they just list on MLS and duck.. thats one thing.

But if its like most props in those price ranges. marketing cost might be 10k alone.

Your points are common feedback with RE brokerage commissions they are as you know negotiable. no one is forcing you to sign with a broker.

lastly most brokers in the LUX market would not even come close to entertaining what your offering.. they would be thanks but no thanks. Not worth their time.