sdrealtor: “The problem is that you dont know which kind of transaction you are involved in until it is too late. Seemingly simple transactions end up in arbitration every day. I’m not arguing that this is brain surgery, it isnt. However, it is not as simple and NOT as profitable as you think.”
In all his posts, I think he does an excellent job of making the case for the value of a realtor. The main counter I would make is: “What if the deal was clean and easy? Do I get a refund for the potential expenses that were never made?”
sdrealtor: “I would venture to guess that there are considerably more engineers, stock brokers, car salesman, plumbers etc. earning 6 figure salaries than Realtors. Furthermore, if you took the average after tax earning of realtors that get no benefits, pay both sides of SS tax, all their expenses and only get paid if escrow closes you would be very underwhelmed by the figure the saw. The vast majority (80%+) would make more money working at Target.”
I totally believe the salary disrecpancy, but I would attribute it to the overpopulation of realtors competing for the same (or fewer) sales. Still, there’s one of me paying a too-high price, and many realtors that have to average out what I have to pay.
sdrealtor: “One $100,000 judgement against him that is not his fault in any way but for which he is held liable and he is wiped out.”
Isn’t there insurance for this? $200/mo for E&O is what I’ve read.
In general, sdrealtor seems to be saying that being an agent is very difficult and not very profitable. I believe this. But should high commissions be used to subsidize this inefficient business?
