Are Realtors Contributing to Rising Costs?
Someone was ranting about rising housing costs and blaming it on realtors. Here are a few digestible points which indicate my view on this matter (spoiler: realtors are incentivized to keep prices lower).
First, let's look at WHY a person might accuse realtors of over-inflating prices. Why would an agent want to do that? There are two reasons:
1) We have done a good job for our seller client if we can get a higher price for them - we look good!
2) Since commission is usually a percentage of the sale price, a higher price will produce a higher commission to the agent.
The first point shouldn't have to be defended; and as I'll explain below, it's a force that is balanced by having another agent representing…