As I’ve mentioned on here before, I got a real estate license six years ago because I was sick of incompetent lazy realtors. I now do work for my own deals, and do several deals per year for friends and family. They like having someone who used to run companies represent them.
There are a few critical elements to being a good agent, and 90% of them out there just don’t have the experience, skills, or makeup to do the job well. I’ve been shocked at the incompetence I’ve found. I’m in the middle of a deal, and the other realtor had a $3000 exposure for their client that I’m sure the client wasn’t even aware they had. And this was a client that had to scrape for every dollar to get the down payment.
This agreement will have a substantial effect on the industry. It will provide more power to push commissions down. As Gil mentioned, 6% is often high unless you are selling a very low priced house, like $300-400k or less. What amazes me is that $1M-$2M homes are getting sold under 6% commissions. That’s ridiculous imo.