I just read an article that made me laugh. I have been in real estate for 36 years the CEO of Coldwell Banker since 2004 and I have seen my share of foolish articles and headlines. But this one tops the list: Why Getting Rid Of Realtors Will Save The Housing Market
I hope no one believes anything in the article.
Sellers realize a real estate agent is extremely important today. In fact, according to real estate industry analyst Real Trends, the average commission paid to a professional sales associate has actually gone up because selling a home is more difficult today than it was five years ago. There will be approximately 30% fewer homes sold this year than in the peak year of 2006.
And you want to use an agent. Since 2004, the amount of homes that were For Sale By Owner (FSBO) has dropped from 14% to 9% of all homes sold. And the median price for all FSBOs last year was $140,000 compared to $168,000 for those who started as a FSBO and then hired an agent to get their home sold. That’s a 17.5% increase. Clearly doing it yourself leaves money on the table largely because pricing the home correctly is critical.
Buyers and sellers today are anxious, confused and nervous about engaging in the home buying and selling process. We know that both anecdotally and factually through a survey we did. Where once there was a lot of excitement in the process, today consumers are rightly cautious. Let’s face it, economic conditions impact all of us.
But through all of this, buyers are buying and sellers are selling. And they are doing so largely because of lifestyle reasons. Getting married, having kids, getting a job transfer or promotion, downsizing to a smaller home. These are just some of the reasons people continue to buy or sell today.
And clearly real estate agents play a major role in those transactions. They obviously help set the sales price, market the home, and guide you through every step of the process. And in most cases, they are paid a commission at the conclusion of the sale. And that commission is based upon the sales price, not “added on” as the article indicates.
I could go on and on about this article, but it’s just so off-base that I think 389 words on it is enough! So what do you think?