I see what you are getting at. I do not see any of that changing much. Transaction costs are your choice to participate in or not. You don’t need to be represented as a buyer and if you are a seller you can FSBO a home. Nobody is twisting your arm. Closing costs for the buyers side are dominated by financing.
Actually I disagree with the statement about transaction costs will lead to only quality realtors staying in the profession. I think quite the opposite will happen. I consider myself top notch, yet even at the steeped discount I give buyers and low commissions for sellers, if I didn’t have an engineering profession it would be highly speculative whether I would stay in this one.
It just is not worth it.
I am not saying there is alot of slop in the industry because that is a true statment. However alot of the fat has been trimmed and will continue to do so. Similarly friends and families of realtors will continue to work with those same realtors because that is the way it was, the way it is, and how it will always be.
Actually any John Q public can get county records on any home they want, including how many mortgages have been on that home, etc… There is plenty out there but it is a royal pain to get at it. Also what is not made public is credits made for repairs or any other sellers concessions.
Note that all of these shortcomings also apply to new housing bought.
I take a blind eye to all stats in any newspaper and mag. I keep it contained to the nieghborhood I am interested in and focus on that area. I sincerely doubt that any dramatic changes in the way transaction costs are levied will change pricing of real estate in any substantial manner. Yes I will be the first one to agree the model stinks right now but you are empowered to not have to participate in it while finding yourself a home or selling a home.
