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Re:Zillow CEO: startups trying to disrupt real estate commis... by conanbatt on Thursday January 17, 2019 @02:38PM (#18933837)
I'll try to rephrase it:

100x the comission might have 100x the competition. As a seller of the house, you pay more but you also get better agents.

Re:Zillow CEO: startups trying to disrupt real estate commis... by JamesBarney on Thursday January 17, 2019 @02:50PM (#18933952)
You're not getting a 100x better agent, and most of the best i.e. most successful agents I've seen weren't necessarily better negotiators, better at contracts, or more responsive. They were specifically better @ marketing and selling themselves.

The most successful agents I know close houses twice as fast as other agents. But they close them twice as fast as other agents because they're listing them under market value.

My wife was a real estate agent for 5 years but she got out of it because all of the most successful agents she met were more successful in ways that hurt the client not helped them.

Examples - convincing their clients to settle for homes quickly, convincing clients to list their house less than market value, weeding out easy clients.

Re:Zillow CEO: startups trying to disrupt real estate commis... by conanbatt on Thursday January 17, 2019 @03:08PM (#18934113)
My wife is also in the real estate market: the reality is that people's incentives are not maximized on house value, they also care about other things , like safety, patient, attention, etc.

It is what it is. RE is not a perfect market because goods really cant be commoditized.

I reiterate my point with one more argument: the average income of a realtor is very low: they make very little money. The number of active realtors is almost perfectly correlated with house prices: that means a highly competitive , and thus relatively efficient, system.