Wednesday, March 20, 2024

Prediction In Real Estate Markets

 With the National Association of Realtors market lawsuit now finalized I have an assessment for the future. 

Decoupling the buyer and seller commissions will lead to a 90% destruction in costs in the intermediate future. 

Right now it was ~6% of a price of a house split between buyer and seller agents. What a joke. 

Someone smart is going to come in and drive this price down to rock bottom and drive competition out of the market.  There will be plenty of people out there willing to lose in the short term to dominate the market in the long term. 

If you are a realtor or broker and running a lean operation you will be out soon.  I don't think the realtors that have been in the market for a long time make it out of this. It will be too hard to adapt. They are too acclimated to their overhead and profit margins.  

This is a world most of us have had to live in for a long time. Becoming efficient and keeping costs in check. 

I wouldn't be invested in a realty or broker right now. 

Exciting times!

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