Quote:
Originally Posted by troutman
Lawyers charge 1/2?
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On a per hour basis. Last year, I moved and I was curious because the pricing model of the industry always seemed out of whack to me, so I paid allot attention to the kind of time my realtor, lawyer, and mortgage agent were putting in.
I figured the Realtor made ~$400/hour on the sale. *with a $2000 discount on his commission.
I only included the half that he received, I consider the buyers agents fee to be paid buy the buyer. Because that is where the money is really coming from, and I find the way they traditionally describe the relationship vary unethical.
On the Purchase with no discount, i think he made ~$200/hour.
The Lawyers on both transactions provided a detailed list of tasks preformed. I think it would have worked out to about
$175/hour (or half of what the realtor charged)
I'm sure most of the time was a paralegal. but there expertise is probably as high as a realtor.
I did not use a mortgage broker this time, I worked directly with my previous bank. And I think for the work they put in I paid them ~$15/hour in Admin fees. But they will get their money in other ways.
I personally feel by comparing it to other services, both trades and professional, including advertising, marketing, overhead, association fees it would be reasonable to charge between $90 and $150 /hour. The rest of that money is going somewhere that is not in the customers best interest. Weather its the Realtor, or the Brokerage, or the Board?
It was an interesting experience putting that amount of effort into seeing where the money went. I do think discount brokerages are a good idea for most, they are doing what they can to address issues that are systemic in the industry.