That’s what the broker told me when I asked him what his clients think about paying him $100,000 plus commissions to sell their swanky Manhattan apartments. And when I asked him why he said, “that as long as they got their money they didn’t care how much I make.”
Since these apartments are in great demand, not only do they sell for over a million dollars, but they tend to sell very quickly and without much effort from the real estate agent. On an hourly basis, I’d imagine some New York real estate agents make a couple thousand dollars an hour. That’s more than the finest surgeons in the world. And all without the need for a college degree.
It’s called the Pay Day Effect and it’s the driving force behind the $60 billion residential real estate industry in the United States. Home sellers sell their home with some equity and as long as they get to keep most of it, they don’t care how much their real estate agent makes.
For the past three years I have been trying my hardest to educate home sellers how to intelligently sell their homes and pay a fair commission, which is far less than the customary commission. In this way they get to keep more of their equity. It’s not hard to do today, you just need a little education.
Well guess what? They don’t want that education, because home sellers just don’t care. As long as they get theirs, they don’t care if they’re getting ripped off.
I learned a hard less these last three years: You can’t educate people to want something. And by and large, home sellers don’t want to keep more of their home equity. It’s just not that important to them.
So, I’m retiring from the home seller education business. Oh, my book and ecourse are still available and any home seller wanting an education can certainly find them. But I’m done trying to educate people into wanting something they clearly don’t care about. I’m done trying to fix a broken industry. I’ll leave that to the millennials and gen xers who put more faith in technology than they do in human beings.
Goodbye and good luck.
Also published on Medium.