What do you think of Real Estate Agents and their pay rates?
I have recently been aware of a property that sold for just over a million, and it supposedly sold in like 6 hours, right away.
Real Estate agents get (I think) 2% commission. On a million dollar home, that's $20,000. In 6 hours.
Someone explained to me that these commission rates were set many years ago when the house prices were much lower, and 2% commission may have been more reasonable. But since then house prices have ballooned to ridiculous levels, yet the commission stayed the same!
Do you think this is fair pay? I wonder sometimes with online listings available (MLS), what really is the need for an agent? Aside from perhaps handling some of the legal paperwork, do you feel the agent earned 20 grand for selling that house?
Are real estate agents loaded then, or what? I mean if you can close 4-5 sales in a month that's potentially $100,000 a month.
Am I missing something?
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