This Sunday’s 60 Minutes episode seems to have caused NAR start running around like chickens little screaming “The Sky is Falling, the sky is falling”. NAR is running around telling people to not watch the episode because they think it might damage Realtor’s reputations.
All of you who read this blog have probably seen the press release. If not here is a link to the PDF file from the Gang at Bloodhound (file)
Trying to do damage control only leads to more people wanting to see what all the fuss is about. The best thing NAR could have done was to just ignore the episode.
Do I think agents deserve their comish? Yes. Morgan over at Blown Mortgage said exactly what I feel.
I think that some Realtors are worth the commission, just like some loan officers are, just like a small percentage of people in any service industry actually earn their fee.? Most, however, have just ridden this bubble and cashed in at 3% a side on every home sale over the last few years.
The reason people are upset at the commissions are two fold.
One reason is because for the past few/many years you could become an agent, get a listing and then stick it on the MLS and put a sign on the yard and it was sold in 30 minutes well above asking (depending on your area). This is what is sticking in peoples mind. They don’t think anyone deserves that kind of money for doing so little amount of over all time. This is the overall consensus.
Reason two is because people actually see what you are making. When you buy a car you don’t see the breakdown of what the sales guy is getting. Car salesmen can make good money. Everyone in the ‘sales’ industry is paid some sort of commission. Everyone is getting upset only because they see how much you make and when they see it they say “HOLY CRAP! My agent got that much?”
With the Real Estate market changing I think Realtors will have an easier time keeping that same commission, because to get a house sold is going to take some more work that the past few years. I don’t completely agree with the Buyer’s Agent commission but then again if they work for it then they deserve it. If I find the house I want to buy myself and did all the leg work then maybe I might ask for a kick back of a portion of the commission. But in all honesty, I am to busy I would rather someone did that work for me and they can earn that commission.
When I buy my next house I will be using a Realtor but they will go through a very intense screening process which will include their use of technology 😉
Yes, I will be watching the show.
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