What will happen if we remove commissions for real estate agents ?
2025.01.24 00:22 Training_Scene_4830 What will happen if we remove commissions for real estate agents ?
Link to my preivous post here
Wanted to make a new post discussing an alternative.
I think the easiest way to solve this real estate problem is to change the pay structure.
For example if a REA's charges 2% commission to sell on 1m property that is 20k out of your pocket right away. Most people don't think this 20k is alot of money because they're brain is tricking them as its in comparison to a 1m property (Anchoring Bias)
However comissions do not incentive REA's to go the extra mile for the client as their payoff is disproprational. Say your floor price 1.05m. The REA's comission is only $1k more where you as the vendor get 50k more. The REA's best interest is to force a sale through at the lower price or they risk making $0.
I propose my initial thoughts as a potential solution. Happy to hear why I am right or wrong. Again just a thought experiment before angry real estate agents come in and downvote like last post.
Flat fee or hourly rate for intial service + other costs incurred by the agent etc. If lawyers and accountants only bill for their time why can't REA's.
Capped comissions on sales at say maximum 0.25-0.5% of the property sale price to align the incentives here. Commission can be tiered on sale price too. Not sure why this isnt more common.
1m-1.1m gets 0.25% comission
> 1.1m gets the maximum 0.5% comission
- Lower commissions mean sellers keep more of the sale proceeds. This could incentivize them to list at lower prices, making homes more affordable potentially ? ( not statement just a question)
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I've eliminated pretty much all of these sorts of foods that have a siren call to me....except chocolate and candy. I've tried the approach of "I'll plan a treat!" and "I'll buy a single serving to eat outside the house" but it always spirals.
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Has anyone gone cold turkey on chocolate and been successful?
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