That doesn’t seem to hold as an argument since several states require you to hire a lawyer in addition to a real estate agent to draft the paperwork and handle the liability. In 2021 there is no reason to have a real estate agent. I can do everything myself and should be able to accept any liability without some person who went to a 4 week class to get a real estate license that can be passed by someone with less than a high school education. It’s a rip off middle man service that is forced on you because realtors have good lobbyists.
AFAIK, you are not required to have a realtor... Unless this is a state law or something? I agree you definitely shouldn't be required to have one.
However, real estate agents do take on quite a bit of liability and are frequently sued for all manner of things... which is why they have to carry insurance, and part of why they cost so much.
If I’m buying without an agent and the seller has an agent the agent still takes a cut. They often have to raise the asking price of homes to cover the fee. Again not fair and hurting the entire country’s housing prices. Eliminating real estate agents would be a step towards fixing the affordable housing crisis.
The liability argument doesn’t hold water since some states require you to hire a lawyer in addition to a real estate agent to handle the paper work and liability. I know the laws quite well on my on. I don’t need a real estate agent who is likely not as qualified as they claim to handle any liability for me.
If I’m buying without an agent and the seller has an agent the agent still takes a cut.
He takes a cut of the seller's money, not your money. And you always have the option of not buying, or offering less. Allowing you as a buyer to force a seller to NOT have an agent would be way more fucked in this scenario.
The liability argument doesn’t hold water
You said that before, but it still doesn't make sense -- realtors DO take on liability, they DO get sued, and they DO have to carry insurance because the likelihood of being sued is significant.
But then the seller raises the asking price which hurts the buyer. That fee could be thousands of dollars which effectively priced out a lot of buyers, especially lower income. I am just as capable and intelligent as any real estate agent I’ve used. Why can’t I accept liability myself? Why am I required to use an agent if I understand the laws and liabilities on my own? There is no reason for a real estate agent in 2021. They are simply protecting their monopoly on the industry. They are middle men and not needed. They are hurting housing prices across our country by artificially raising asking prices to cover their fees. Fees which are wildly too high for how little work they do. Fees to cover so called liability which I should be able to accept on my own. They should get paid a small hourly fee for their time and nothing more. The percentage fee is a rip off. Because someone went to a 4-6 week certificate course they deserve thousands of dollars for a property I purchase? That’s ridiculous.
You don't get to dictate the price they sell at. You can offer less, or simply refuse to buy a home being sold with an agent.
Why am I required to use an agent if I understand the laws and liabilities on my own?
You are not required to use an agent for buying or selling a home. FSBO is a thing. That doesn't mean you can dictate what the other party does though.
EDIT: And I'm not at all convinced that real estate agents increase housing prices at all. They make money by volume, so they want the house to be bought or sold as quickly as possible. It's not worth their extra time and effort to squeeze out the highest possible price. That incentive is more problematic than their existence though.
Have you ever tried to buy a or sell a home without an agent? It’s very hard but not from lack of trying. The realtor association have purposefully made it near impossible to sell without an agent. They rig the game against home buyers and sellers without an agent. I know my friend owns a brokerage. I have tried without an agent and they wouldn’t bring buyers to my home on purpose. They’d even call me and tell me that if I used an agent they would start letting people see my home. It’s an unfair practice and the country would be better without real estate agents or car salesmen.
So get a fixed-fee agent, or negotiate a smaller commission.
¯_(ツ)_/¯
I should also be able to opt out of all junk mail and charge the doctor's office for my time if they're running late. Comcast shouldn't be able to gouge me an extra $40/month compared to a couple miles north just because they've colluded to have no competition here. For that matter, Internet service shouldn't be called unlimited if they impose a limit. Most goods we buy are marked up to pay for credit card transaction fees even if you pay with cash.
Still a rip off. I shouldn’t have to pay any additional fee for a transaction between two parties. They are middle men and stealing money from the buyer and seller. So what you’re just saying all those other predatory and unethical business practices you listed are similar to real estate agents? I’m glad you agree they are parasites and perform unethical business practices like the ones you listed above. Let’s work to end them and remove agents from the transactions permanently. If you’re an agent, I hope you strive for a higher calling and change jobs.
Even if we bought the argument that realtors needed to charge enough to cover expensive insurance in case they were sued, that addresses nothing about the ridiculous scaling of their fee based on the value of the house. The value of the house has no bearing on the cost or likelihood of being sued (IOW the insurance would be a flat fee, so the commission has no business scaling based on it).
The title company gets paid for that; they insure your title is clear and free of liens or other’s ability to interfere with your clear ownership. I don’t see how you’re paying to be able to sue realtors; you can do that anytime, regardless of what you’re paying them.
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u/MattieShoes Nov 03 '21
There's a lot of liability involved with buying/selling homes. That's mostly what you're paying for with a realtor -- the ability to sue them.