Does REA percentage fee make sense?

tilenutDecember 2, 2008

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.

Thank you for reporting this comment. Undo
lucy

Knock yourself out if you think of a way to make it happen :-). Those high end places are larger, and do need a bit more attention and explanation of finishes, space, etc., but a percentage is a percentage, whether or not we like it.

    Bookmark   December 2, 2008 at 10:43PM
Thank you for reporting this comment. Undo
berniek

I'm looking at a glossy 3 page ad of a multi million $ property auction. The buyer premium is 7.5%, if an agent brings a buyer, add another 3% on top of that.
I'd say a listing of this property at 5% (3+2% listingside), sounds reasonable to me.

    Bookmark   December 3, 2008 at 2:30PM
Thank you for reporting this comment. Undo
susanjn

Tilenut, check the archives. You'll find lots to read.

    Bookmark   December 3, 2008 at 6:05PM
Thank you for reporting this comment. Undo
tilenut

Susan,
Yes, I've been reading the archives, and have found interesting conversations about different fees in different areas, relative merits of FSBO, etc, but haven't found a thread on this topic specifcally, that is the need for change based on the huge impact of the internet and widely varying home prices. Or maybe it's out there and I've missed it.

    Bookmark   December 5, 2008 at 8:09PM
Thank you for reporting this comment. Undo
tilenut

Okay, need to eat my words. Just read the "Goldilocks" thread, an the topic is discussed, sort of.

    Bookmark   December 6, 2008 at 1:03AM
Sign Up to comment
More Discussions
Hall bathroom with claw foot tub, garden view but no shower.
We have a 4 bd, 3 bath house that I am getting ready...
gwarring
Pond Dye Dumped Into My Pond and Stream... Water Rights Question
I never posted once in seven years, and now I post...
ncrealestateguy
selling a garden centric property during a drought
I realize that gardens and orchards are not usually...
gwarring
what do you do with mail that comes for previous occupants?
I always get mail that is meant for previous occupants...
tlbean2004
Sell Home, Go to Court Or What?
This may be the first time I have posted asking for...
ncrealestateguy
Sponsored Products
3 Lights Modern Style Wall Sconce with Acrylic Shade
ParrotUncle
New Unique 6x9 Aqua Blue/Ivory Heriz Serapi Hand Knotted Veg Dyed Wool Rug H3563
BH Sun Inc
Dawson Creek Panel Bed - DS600QB
$630.00 | Hayneedle
Corbett Lighting Inertia Silver Leaf Wall Sconce
$466.00 | LuxeDecor
Fancy Iron and Acrylic Decorated Table Lamp
ParrotUncle
Swiss Passport Mini Pendant by Kichler
$81.40 | Lumens
Stacy Garcia Avocado Dahlia Giclee Plug-In Swag Chandelier
Lamps Plus
Woven and Wood Lamp
$249.99 | Dot & Bo
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™