People ask me all the time, "Don't you think 3% commission for simply selling or purchasing a home for someone is a little high". My answer, not at all. For the majority of people, their home is or will be the biggest asset they will ever own. The expertise and hard work of (most)real estate agents is worth their paycheck. From setting up showings, to searching the markets for available homes, to dealing with picky clients that have ever changing needs, to dealing with contacts and 3rd party inspections; the agents that I know earn their commission and then some. Home sellers and buyers are paying for knowledge and expertise when it comes to a good agent. Let's take a doctor for example, the average time spent with a patient is 15 minutes, but they don't charge you for a quarter of an hours worth of work do they? No, they charge you for the 10 years of medical school and the knowledge that they gained plus interest! The same goes for buying or selling a house. Professionals should be compensated for their knowledge and expertise. So that's where I stand on the issue. What are your thoughts?
Mahesh, just like a lot of people who thing about paying for a service. Its always too high unless they are the ones who is doing the charging. Selling a home is easy... closing the home however is almost never easy. Some form of issues pop up all the time. From inspection issues, appraisal, and underwriting. Clouds on title and credit or job changes during the accepted agreement prior to closing. Its never easy. But solving the problems is what we do to make our pittance.
Hi Mahesh
I thank you for explaining your value. Professionals should charge a what they are worth.
Great point. Real Estate agents work hard to make sure that clients don't run into problems in the future.
Mahesh - I think once people become familiar with all that is done to sell a home, they change their minds.
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