The key characteristic of Realtor compensation is that it is determined by the market – by supply and demand. Another important characteristic is that it is entirely transparent. When I buy/sell real estate and work with an agent, I know exactly (to the penny) how much my agent gets in a transaction. I enter into the deal voluntarily, am free to work with whomever I choose (or not at all) and know exactly how much I am paying for the services.
If I overpay for services, that’s entirely my own doing and has nothing to do with the government.
On the other hand, much of public-sector compensation is determined by government mandate, backroom deals, and generally opaque influences that hide the true cost of services from those who pay for them (the taxpayers). Big difference.[/quote]
So the true taxpayer cost of Realtor activities is transparent and clear?
Riiiigght.
How many short sale deals involved FHA, Freddie, or Fannie accepting far less than the market would dictate?
Who pays for government backstops on those agencies and entities?
How much would the interest rates be without GSE’s buying that debt?
How do the GSE’s afford that debt?
Its not like our industry would go away without the govt.
However, the reason we are able to make over $100k per year at 3% per deal is because the values are driven up by government subsidies to the debt market.
