Left - Redfin's founder says that "Real estate, by far, is the most screwed up industry in America." Right - NAR says "All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends."
The Middle - might say that the real estate agents and brokers fight mightily to maintain their commission rates and structures, even when fast markets move properties with little effort or expense. They might also believe that there is no flexibility for the changes brought on by the internet.
Left - 60 Minutes said The commission rate has remained the same "even as the price of homes has quadrupled over the last 25 years."
Right - A REMAX agent's reply was that all costs have gone up, including postage and gas prices.
The Middle - Are gas and postage still the same percentage of the cost of a listing/sale transaction, or have they decreased with the internet? Are REALTORS® still doing huge print ads that aren't as effective as the web for marketing, but cost much more? Is there not enough incentive to tell this to listing clients in order to lower costs? Are real estate professionals so far behind technologically that they aren't taking advantage of the economies available and ignoring how to improve their costs of doing business?
This argument just gets better on the next page!
