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.
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.