New Rules for Realtors

I appreciate the work of a professional the much as the next guy, but no industry compensates mediocre performance more fully than the monopoly that was the real estate industry. There was literally no compensation differentiating between good skill sets and bad skill sets, between experience and inexperience, and there was little to no room to negotiate their fees, regardless of the assertions of the real estate players who claim 'that all fees are negotiable' (especially if you don't want anyone to show your home or you want to get silent black-listed from the collusive activities among all the real estate companies.)

Nobody should be paid $60,000 for answering a phone call, unlocking some doors, and showing up at the closing table. There is a value there, but because of the wink and nod collusion in the industry, it's not valued appropriately.

Here's a Axios article - Subtitled - "Mediocre real estate agents are out".

The unaffordability of using 6% commission based agents forced us in 2005 to sell our own houses, because our profit margins couldn't support a 6% payout on sales price, not profits - where agents who unlocked the door would get paid more than our years worth of effort. We actually are one of the few firms in the country that can claim the vertical integration of development, design, build and sell effort (more accurately, 'successful effort'). Over at Ashokan Acres, only 1 of 9 came through an agent, and that was a suspect arrangement that seemed more like friends or colleagues- 1 with a real estate license - working in tandem to profit from my efforts. So the buy side being eliminated from the commission would eliminate that type of shenanigans.

My guess is this article is right on - different compensation scheme, less shitty real estate agents hoping for that 1 or 2 sells a year for augmented income, more business at lower rates for the ones left standing. That makes sense to me, since to be honest, there are more poor performing realtors than professionals. No other industry compensates the same no matter what the skill level is, no matter the region being served, no matter what the sales prices is v. effort required to complete the task.