The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Tradelite who wrote (6698)	11/12/2002 9:38:36 PM
From: Lizzie Tudor	Read Replies (3) of 306849

It isn't that realtors aren't needed, its just that as average (tract) home prices have soared, commissions have moved up to a disproportionate level wrt the effort it takes to sell the house. I'm sure you understand this but you act like it escapes you for some reason. At one point in time... (the 70s?) a 500K home was a mini-mansion requiring significant effort to sell. Now its your average run of the mill cookie cutter home where not much hand-holding is required. Offhand I would say $15,000 is an appropriate commission to pay for selling an avg 3br 2ba home in California. This is 2 weekends of work... but there are marketing expenses etc. so 15K should just about cover it. Thats 3% vs. the 6% which is customary now. Imo the reason this hasn't caught on (yet) is due to the small number of remaining RE firms (at least locally). But, I'm sure its coming in the same way discount brokers emerged in the brokerage industry. Lizzie

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