The current glut of Realtors is bad for real estate investors
There’s no getting around it: there’s simply too many real estate agents out there.
I wrote in a recent post that real estate investors who work with a Realtor will generally end up overpaying for their services; if you pay a $12,000 commission check it’s highly unlikely that you’ve actually gotten $12,000 worth of time or effort out of the Realtor that supported you. And note that a healthy portion of that fee will be passed directly to the buyer – the idea that “the buyer doesn’t pay a commission” is a myth.
This isn’t to suggest, however, that agents are greedy or that they’re raking in the big bucks. Average Realtor income, according to the National Association of Realtors, is under $50,000. This is more than the average elementary school teacher but less than a financial service representative or an engineer.
Buyers and sellers pay too much in commission but many agents still struggle. What gives? The answer is simple too many real estate agents.
Add a comment on "The current glut of Realtors is bad for real estate investors"