How many times do I have to read or listen to someone talking about real estate commissions being the reason that housing is unaffordable? Can we do a little analysis on this and present the facts when asked?
While I would never suggest that we negate someone’s assertion, I would use data to refute their claim. Something like, ” Yes, I’ve read that too, and I find it interesting that most of that info comes from Wall Street when it’s investors that have driven up prices by paying cash and bidding up prices against homebuyers who needed a loan to purchase.”
How much investor owned real estate is in your market? How much have prices increased in your market from 2020 – 2023? Real estate brokerage fees are negotiated at between 2 – 3% per side – I’m betting that’s a drop in the bucket compared to the appreciation you’ve experienced.