Quote:
Originally Posted by you&me
Just to play devil's advocate:
I think the biggest problem with realtors and their commissions is
a) the general lack of meaningful standards in the industry;
b) the lack of alignment between client interests and compensation, and;
c) the relative visibility of the commissions.
the only difference being that Joe-public doesn't necessarily realize what the (%) margins are for a interior designer, investment banker, boat dealer, etc... What essentially amounts to ~1.5% for a 500k, million or two million dollar transaction isn't out of line.
|
I don't think you're playing devil's advocate, I agree with a lot of it.
I just think the visibility of commissions with realtors is complete BS because of the aforementioned lack of standards/education, the inability to quantify what you are paying for, and the anti-competitive nature of the industry itself.
Interior designers have certifications and degrees. From actual schools. Investment bankers have MERs but they can show an ROI. They also have certifications and degrees. From actual schools.
Agreed on boat dealer. Realtors are basically used vehicle salespeople. At least used car sales people don't pretend like they're economists, business analysts, and marketing professionals all rolled into one.