So my friend sent me an article from Bloomberg: Title Americans and Germans Are Being Fleeced by Real Estate Agents Germans (and Americans) pay far too much commission to real estate brokers by Chris Bryant . Chris opinion article was trash he really didn’t look at the USA Real estate brokerage . He assumed and made an ass of himself .
This happens a lot in the media when they write about or talk about the Real Estate market, Trends ,industry and more. They don’t really research or even ask an Real estate company or agent for opinion . I will link the article at the end of the blog for you to read. Don’t take Chris or my opinion as Gold look into it for yourself .
Chris made a good point that in the USA Sellers commissions are being split by Seller representative and Buyer representative agent . This a great point because it shows that USA has moved to caring about the clients . Putting the client interest first . Also making it easy and faster for Sellers to get a buyer . 2019 currently its 70 days on average in USA for house to sell . In UK its current average is 126 days which is 56 days more . That close to two more months of mortgage (interest,insurance,property taxes ) Seller has to pay .
Let do the math Seller selling 100,000 (Single Family ) in UK and 100,000( Single Family ) in USA. In Dollars for Both
United Kingdom 100,000( 4%)mortgage payment a month $400 Commission is 3% = $3,000 Difference of day on market 56 Days 13.33 a day $ 746.48 in total more in payment Seller need to clean up for other 56 Days lets say it 100$ a month for cleaning person comes out to 3,33 a day totals 186.66 . Lets Total it up 3,933.15. This doesn’t count the stress of Seller waiting for house to be sold . If I was to work out that number it be more like adding other 3,500 on top of the 3,933.15
USA 100,000 (4%)$400 Commission is 6% but everyone knows there range USA of 3%-6% Chris just had to look = $6,000
So this Chris is right at 6% USA is more not counting the Stress of the Seller but again Chris Just need to do some Research he would find US Real Estate Companies 2%-6% . Each company provide different services with Sellers would be happy .
Please note USA heath Care is private so as USA Agent we working to save our Client Stress level of UK Levels 56 Days is a Life time in Real Estate Life .
Also when agents only representing the Seller it creates a mistrust by the Buyers searching for Home . It builds more buyers fearing Real Estate agents trusting no one in the transaction . Making it for more stress but British do live longer so they can afford a little more stress then Americans .
So Chris “Said Now that Technology has come into Real Estate it is time for commissions to go Down ”
What a waste of Article if he just look at Real Estate in USA in the past he would have seen Commissions Fees of 6%-9% and more . To today’s commissions of 2%-6% . Chris this Commissions drops were done by the Market Clients want difference kinds of Service and Real Estate agents/Companies gave it to them .
You want Time is it Chris . It time to Stop trying to cut Prices of any Service just because Media has seen a hit doesn’t mean you should go around trying to bad month other industries.
Bellow is Chris Bryant article