Realtors want to have their cake, and eat it, too
June 7th, 2006 | by mbhunter |This is comical:
Realtors see lower US home sales
The National Association of Realtors is calling on the Fed to stop hiking the overnight lending rate because some “interest-sensitive” markets have become vulnerable.
At the same time, though, they welcome the slow-down due to the tightening monetary policy because it helps to “preserve long-term affordability.”
So which is it, guys? Do you want housing to be more affordable by having the higher interest rates drive down the price of the housing, or do you want the hikes to stop so that people don’t get bad vibes about interest-only loans, and the associated payments, going through the roof?
Hmmmm … I didn’t seem to hear much complaining from the Realtors when prices were skyrocketing: their 6% was a whole lot bigger! Now they’re faced with fewer of those commissions, and they’ll be smaller. Their “concerns” have very little to do with the people buying the houses and a whole lot to do with their livelihood. Besides, if they were really that concerned about long-term affordability for buyers, they should welcome the coming wave of foreclosures in these “vulnerable” markets. But, alas, auctioneers make the money there, not the Realtors.
I’d start polishing up that resume if I were a real estate agent!
2 Responses to “Realtors want to have their cake, and eat it, too”
By traineeinvestor on Jun 7, 2006 | Reply
Agents get a a 6% commission in the US???? That is a ridiculous transaction cost.
In Hong Kong the standard commission on a residential property in the secondary market is 1% – and it is negotiable – although typically each of the buyer and the seller will pay commission.
By mbhunter on Jun 7, 2006 | Reply
Hi traineeinvestor, thanks for the comment!
The agents don’t get the entire 6% — usually buyer’s agent gets 1.5%, seller’s agent gets 1.5%, and realty company or companies (like Century 21) get the other 3%. The seller usually pays the majority of 6% cost.