Can a Realtor Fix the Broken Real Estate Industry in the US?

“Real Estate, by far, is the most screwed-up industry in America.”
-Glenn Kelman, CEO of Redfin

Here’s a list of things that are broken with the real estate industry in the US:

  1. Commission is proportional to the price of the home, not the effort to sell it
  2. Realtors have to risk working for free
  3. Inexperienced agents charge the same fee as long-term super-stars
  4. Home buyers don’t pay for the person serving them
  5. Buyers get to see how long a home has been on the market
  6. Real estate agencies spend 90% of their time recruiting new agents and 10% helping their customers

The remarkable thing about this list is that it was complied by a real estate agent: Greg Hauge (the Muhammad Ali of real estate). Greg, among other things, is a realtor. And Greg gets it.

The only question I have is, if one realtor can see it, why can’t they all?

To learn how to keep more or your hard-earned equity when you sell your home, check out The Intelligent Home Seller eBook and The Intelligent Home Seller eCourse.

The Biggest Lie You’ll Hear When You Sell Your Own Home

Do you what they call a buyer who makes a lowball offer in today’s market? Renter.

FSBOI can certainly understand a home seller wanting to sell their own home. There are three compelling reasons to do so:

  1. In today’s market a properly priced home will practically sell itself
  2. Most buyers find a home online, without the help of a realtor
  3. It saves a ton of money

Of course if you do sell your own home, you will likely encounter an old wives tale that has been passed off as the truth. The story goes that when you sell your own home, savvy buyers will know that you are saving the commission and will expect you to pass that savings on to them, so they will just subtract that amount from the “fair” offer they make you.

Maybe that logic works in a buyer’s market. Then again any lowball offer may work in a buyer’s market, depending on the motivation of the seller. But in the seller’s market like we have today in most areas, following that logic will keep you on the outside looking in.

The truth is that most homes for sale today are extremely competitive, tend to sell quickly and for over the asking price—even homes being sold without a realtor.

So, go ahead all you FSBOers. Take some great photos, price your home intelligently and don’t worry about passing on commission savings. It’s just a myth perpetrated by those who don’t benefit when you sell your own home.

 

To learn how to keep more or your hard-earned equity when you sell your home, check out The Intelligent Home Seller eBook and The Intelligent Home Seller eCourse.