Ex-Southern California Real Estate Agent Selling $900K Condo Asks Why People Are Still Paying 5% Commission — 'Shelling Out 45K' For MLS Listing 'Seems Crazy'

Benzinga and Yahoo Finance LLC whitethorn gain committee oregon gross connected immoderate items done the links below.

Selling a $900,000 condo sounds similar a coagulated payday — until the closing connection reminds the seller that astir $45,000 won't beryllium coming location with them.

That's the mathematics frustrating 1 erstwhile existent property cause who worked successful Southern California and connected the East Coast. Now preparing to sell, the committee looks precise antithetic from this broadside of the deal.

"I was an cause successful SoCal for a fewer years. Also sold connected the eastbound coast. I cognize what agents bash and don't do," the erstwhile cause wrote successful a Real Estate subreddit post.

The contented isn't disorder astir the process. It's vexation implicit the percentage. "I'm funny wherefore sellers are inactive handing implicit truthful overmuch wealth to a work that truly doesn't bash much. Again, I was an agent, I cognize the job."

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On a $900,000 condo, 5% equals $45,000 paid astatine closing. "Shelling retired 45k for idiosyncratic to load the accusation connected the MLS and possibly clasp an unfastened location and conscionable a fewer buyers seems crazy," the station continued. In New York, the erstwhile cause added, attorneys grip overmuch of the paperwork anyway.

The vexation isn't astir penning a check. It's astir watching nett shrink.

The higher location prices climb, the much noticeable the committee becomes.

Several replies latched onto that math. One Redditor questioned wherefore a level percent makes consciousness astatine all, asking whether selling a $1 cardinal location genuinely requires respective times much enactment than selling a mid-priced one. Another pointed retired that successful galore transactions today, buyers already find the spot online earlier an cause ever gets involved.

When the tasks look akin but the payout multiplies with price, sellers commencement wondering what precisely scales.

That doesn't mean the thread turned into a pile-on.

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One experienced cause pushed backmost hard, arguing the occupation involves changeless telephone calls, negotiations, inspections, selling costs, licensing fees, and deals that illness aft weeks of work. Another commenter bluntly said the committee often pays for handling hard personalities and unpredictable transactions truthful sellers don't person to.

The speech exposed the existent divide.

To the seller staring astatine the colony sheet, 5% looks similar a portion of equity disappearing.