ASG

Blame Realtors, Brokers and Bankers - Not Greenspan

What a load of ridiculous rubbish. Little correct factual information and a demonstrated complete lack of understanding of the topic.

Even the repotrt listed as reference on commission rates indicated that the fact the 6% fee is relatively standard and has been for many years indicates a fair and balanced fee for service rendered.

It also touches on the important differences between US and other conutries - and that is risk the Realtor assume in a US listing. In the US the Realtor assumes risk of ALL costs - advetising, marketing, fees ... all expenses are borne by the agent or company and none by Sellers.

If the home does not sell the agent and company receive nothing. Try that with you doctor or attorney - tell them you aren't paying unless the cure you or win your case.

You pay them for their knowledge and experience - and you pay them on an hourly basis. Realtors have equally valuable knowledge and experience, yet are expected to take full risk.

That is why commissions are 6% - to reflect the assumption of costs and risk.

Additionally, in yet another show of ignorance, the author shows a lack of understanding of market valuation of real estate. In the US, because of the long history and consensus that the fee is fair, home prices have that 6% factored into the home price. This is evidenced by buyers who will generally try to reduce the price paid if property is offered by owner.

If the real estate industry were to reduce rates significantly the home prices in the US would drop by a commensurate amount.

Clearly this alleged "author" was more interested in attacking - than in presenting a well researched, ACCURATE, story. Had they done even the most basic research they could have found these answers ... this info is well documented.

In the end this story is nothing more than mindless finger-pointing iwth little rational thought or basis in fact.