I am surprised at the comment and the number of "likes."
Having been a licensed RE broker, in multiple states, for a very long time I have a difficult time understanding any of this. I guess the average public sees a quick sale on a property and deduces its peaches and cream and easy money in real estate.
If the impression is that realtors are lowlife scum bagging huge easy money, with little effort or ethics required, I'd suggest getting your license and giving it a whirl. After all, the shower of easy money is so huge there is certainly plenty for all!!!
No offense, but there is no skill in being a RE agent. They have no maco understanding of what their advising of home price has lead to. It was a racket for a long time. Real estate agents and appraisers were locked together to get what ever price was put forth.
I’ve attended open houses that are intended primarily for brokers (as a buyer representing myself). Everyone assumes if you’re there, you’re a broker. I’ve overheard buyers’ agents telling the listing agent that the place was under-priced and would go for above ask—not what you’d expect if the buyer’s agents were looking out for their buyers!
I’ve also heard buyer’s agents discuss amongst each other how high they thought they could talk their clients into bidding.
And it’s easy to understand why—it’s in their collective interest to drive prices up.
It takes just as much work to sell a $500,000 house as it does to sell a $2,000,000 house. But the commission for a $2,000,000 house is four times higher.
Both buyers’ and sellers’ brokers are paid a commission which is a percent of the sales price. So they want a fast close, with high certainty of completion, at a high price.
Realtors also generally want housing prices to be going up because it generates excitement about real estate as an investment and makes their jobs easier. Buyers want to buy and sellers want to sell.
In 2008–2009, after prices dropped, a lot of realtors went under as the market was falling and interest in real estate dropped off. Sellers didn’t want to lock in losses. Buyers expected prices to keep falling.
Volume went down and realtors couldn’t get as many commissions.
Everyone who survived that period remembers the lesson—rising prices are good for realtors. Falling markets are devastating.
For fun, try to get a realtor to submit an offer for less than asking price or less than market based on recent transactions. This is totally reasonable—why not try to get a bargain? Another house will come along in a few weeks, and you might save tens of thousands of dollars by being a little bit patient.
Realtors absolutely HATE it and will try anything to talk you into going in at or above asking price.
You don’t buy real estate often. It’s your money. Recognize that your realtor has a conflict of interest and make sure you know how to use them to serve your interests, not theirs.
