Why U.S. realtors earn 6%! Commission…

Why U.S. realtors earn 6%! Commission ❓

And why, though, should we use an intermediary when we want to sell ❓

When I tell people about the expenses,
That we have on a property at the time of sale
indicates that the brokerage fee is 6%,
You almost always raise an eyebrow and ask me–
“What is it? That’s a lot of !!!
Let’s go be realtors in the U.S.!

Here in Israel we are used to
Pay the realtor 2% on a real estate transaction
And it sounds too much to us a lot of times…
So 6%?

So how in our digital age with sites between Zillow, Trulia and others
(American Hand 2) Is it still going on?

Curious? So like this.

In the U.S., it is customary to pay the brokerage fee
It’s usually on the seller only,
That’s the buyer looking for a property to buy.
Doesn’t pay brokerage at all.

Which makes it so that, naturally,
Buyer turns to intermediary help
And doesn’t bother looking for his own properties on online sites.
After all, why start running around filtering and checking
If there’s anyone who does everything for you
And free?

The realtor runs for him, suits him.
Exactly what he’s looking for,
Takes care of him on the mortgage, makes the negotiations for him.
And it’s all completely free… That’s usually how it is there…

Since that’s how the market works,
The seller also has an interest in contacting the broker in order
to be exposed to as many potential buyers as possible,
For most of them work with intermediaries…

So mostly, each side has its own intermediary,
And it’s the middlemen who connect the buyers and the sellers.
(They communicate through a computerized system
The MLS and for that I will expand already in another post).

In this one, the realtors share a commission between them.
And everyone will receive 3% of the brokerage money paid by the seller.

So even though the brokerage fee seems high to us,
In relation to what we are used to here in Israel
We should still use a middleman for a sale.
This expenditure is part of the remedy.
We do when we build
The business plan for the purchase, renovation and sale of a property.

And despite this expense,
The projects in which he was chosen to invest
Will be attractive in their returns.

If you want to ask and know more, I’d be happy to help