Lawyers do work on a percentage basis and it is a much higher percentage. Contingency fees on lawsuits run around 33% so Realtors taking your listing for 4 to 5% is a bargain in comparison. I also think you comment about paying a “non-college educated” realtor $X was out of line. I know plenty of Ivy league educated individuals that are complete failures and plenty of high school educated individuals that are stunningly successful in all types of business endeavors (i.e I’m not referencing RE).
I think the answer is that you are paying for the relatively efficient system of buying and selling homes that Realtors have created. If there were no Realtors the selling of homes would be far less efficient and prices would be substantially lower. Many would argue that this is a good thing until the time comes to sell their home. I am prepared for whatever comes down the pike and just have a hard time seeing the demise of this system because I have seen how it operates and how efficient it is. Believe it or not JES, I have a dormant CPA credential from about 20 years ago among many other things as well as two Master degrees in Business. I have and will continue to shift my focus toward entrepreneurial endeavors and currently have two business ready to launch outside of RE. I have no agenda to protect and no axe to grind
I would love for houses to be cheaper and for honest hardworking people to be able to afford to live in the types of neighborhoods they deserve to. However, i think too much emphasis is on how much Realtors are paid in my opinion as most of you perceive its alot higher than it really is. If the pay were lower you wouldnt attract the calibur of individual that do it well and will only attract the low level that is so prevalent right now because there are no barriers to entry.
