Does REA percentage fee make sense?
Back in the last millenium, when real estate fees as a percentage of home sales were developed, a seller of a $40,000 home could probably afford more than the $35,000 home seller. But the fee difference amounted to just hundreds of dollars. Nowadays, with home pricing running from under $100,000 to many millions, how can we justify the same system? Does it really cost more time and effort to sell a $800,000 home compared to a $200,000? The overhead remains the same. Okay, throw in a bit more for advertising. This still doesn't justify tens of thousands of dollars in fee differential. In fact,I would think that the less expensive homes have more maintenance and other problems, making a sale more difficult.
I think it's time for a change.