Hey,
It has been 7/3 for as long as I can remember and you are right, it hasn't changed with the increase in home prices.
Before the "realtors are all millionaires" crowd comes in... consider the following:
- 7/3 is split - 3.5% and 1.5% is each side the the transaction
- being self employed, put a % of your commission away for taxes
- expenses are much higher than they were years ago.
- competition is much higher than it was years ago. Competition is good for the consumer however it is frustrating seeing a small percentage of realtors doing an awful job. It takes away business from those who are committed + hurts the reputation of realtors as a whole.
- Some may say that technology has made it easier on realtors. I would say the exact opposite. The internet has made it much easier for people to inquire/tire kick. I can spend hours a day working on requests for someone who had no intention of buying/selling. Imagine sitting at work for a entire morning and then finding out at the end of the day you won't be paid for your mornings work. Its a part of my business model to help everyone as I know the person who is not interested today may be in years to come.
- Take into account the buyers I can drive around with for weeks on end who change their mind about buying or the seller who changes his mind about selling (just happened on a property where I brought a near full price offer and upon showing the offer the seller changed his mind. This costs thousands of dollars out of my own pocket that I do not recover by the seller not selling or buyer not buying.
All that said above, it is possible to make a very good living as a realtor and live a great life. The general public only sees the realtors who are making huge money. You need to remind yourself that for every 1 of those there are 10 who are doing nothing.
I can't verify this statement as I do not remember where I saw it however it had to do with realtors having a very high divorce rate. I can be ready to take it easy for the night and receive a call at 9pm. Within 20 minutes I better be up and on my way to see that client/property. If I don't then that potential client will call someone else who will.
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