Tag: industry issues

How Home Buyers And Sellers Can Navigate The Cooperating Commission

How Home Buyers And Sellers Can Navigate The Cooperating Commission
On Thursday I explained how cooperating commissions work, who pays them, and what impact it has on real estate transactions. What I put off until today was the various options that home buyers and sellers have in lowering the cost of these commissions – although I did mention how home sellers could take advantage of... Read more »

The Truth About Coop/ Buy-side Real Estate Commissions

The Truth About Coop/ Buy-side Real Estate Commissions
A couple of weeks ago I wrote about those allegations of conspiracy and collusion. No, not Russian interference in our election. I’m talking about that class action lawsuit regarding alleged price fixing with regard to real estate commissions. It centers around cooperating (buy side) commissions – why they are needed and how they are priced.... Read more »

Home Sellers File Real Estate Commission Class Action Lawsuit

Home Sellers File Real Estate Commission Class Action Lawsuit
Wow! On some level I’m really enjoying this. I’ve always maintained that real estate commissions are just too damn high. So imagine my amusement when a class action lawsuit is filed, claiming that 4 of the nation’s largest franchised brokerages conspired with the National Association of Realtors to fix real estate commissions in 25 cities.... Read more »
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It's Not A Realtor Conspiracy Keeping Real Estate Commissions High

It's Not A Realtor Conspiracy Keeping Real Estate Commissions High
Last week an editorial appeared in the Wall Street Journal: When You Buy or Sell a Home, Realty Bites. The article was written by the guys at REX, an early stage company that helps sellers sell their homes off the MLS without paying a cooperating commission which I wrote about last month: $75 MM Investment... Read more »

The Real Estate DANGER Report: Agent Competency

The Real Estate DANGER Report: Agent Competency
Several years ago (I think it was around 2014) the National Association of Realtors commissioned Stefan Swanepoel, a real estate industry consultant, to conduct a study of the chief threats facing the real estate industry. He and his colleagues surveyed close to 8000 real estate agents, interviewed 74 senior industry executives, and studied over 6000... Read more »

How Dual Agency Affects Commissions And Rebates

How Dual Agency Affects Commissions And Rebates
Last week I wrote about how some researchers had measured the cost of dual agency transactions. They were able to determine that home sellers lost roughly 1.4% of the purchase price even when dual agency was disclosed. However, there are also some additional impacts on the home buyer and the seller and it all has... Read more »
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The Cost Of Dual Agency In Real Estate Transactions

The Cost Of Dual Agency In Real Estate Transactions
In numerous past blog posts I’ve alluded to the problems of dual agency. The fundamental problem is that when there is only one real estate agent “representing” both sides of the transaction whose interest takes priority? In Illinois the way it’s supposed to work is that the real estate agent who is about to work... Read more »

Selling Your Home Fast - The Right And Wrong Way

Selling Your Home Fast - The Right And Wrong Way
This is a follow up to last week’s post on selling your home fast to flippers or vultures. Based on some of my own experiences, it covered the worst way possible to sell your home fast and also explained what’s driving those economics. There was actually way more material on this subject than I could... Read more »

NAR Reverts To Old Nonsensical Position On FSBO Debate

NAR Reverts To Old Nonsensical Position On FSBO Debate
I really thought we had put this issue to bed a year ago – the real cost or savings of for sale by owner – when some smart guys finally looked at the problem the correct way. For years the National Association of Realtors made outrageous claims about how a real estate agent could get... Read more »
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More Reasons Why Real Estate Commissions Are So High

More Reasons Why Real Estate Commissions Are So High
I’ve written on numerous occasions about why real estate commissions are so high, covering a wide range of reasons like wasted time, the cost of friendships, and lead acquisition cost – none of which have anything at all to do with the value of the service provided. Recently I ran across a special report from... Read more »