Quote:
Originally Posted by troutman
That is a bit simplistic.
Hopefully when you sell, there is value in the commission -ex. they obtained a good price for you, they provided a good service, they did things for you because your time is valuable.
When you buy, you don't pay commission. The value of the home is exactly what you offered for it ($480,000).
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Yes, the example is very simplistic. Still makes my point.
And for the love of god don't feed me the bull story of me not paying any commission for the house that I buy. I am not that stupid.
Using my simplistic example again. The person who I am buying the house from is only getting $460,000 into their pocket. So where does the extra money go to? It goes to pay the real estate fees.
Also, yes. I believe that a real estate agent provides a valuable service. But not for the full $20,000. I would say $5,000 - $7,000. is a more appropriate amount.