I sold my home about 2 years ago. After interviewing a few agents, I decided to sell it myself. It was in a very desirable location. I didnt’ even have to place an ad – I was approached by a friend of a neighbour when they caught wind of my wanting to sell. I was very nervous about handling the transaction myself, but with the advice and help of a notary and the Internet (and a sane buyer), I was able to get through the process in a very short period of time without a hitch. Saved myself about $20k!

As someone who has worked on commission alone for almost 20 years, I can sympathize with real estate agents. They do work hard. So what. So do many people. The fees are absolutely ridiculous and undeserved. They should charge a flat fee – not a % of the sale value.

Preet article: Staying the course is the right thing to do – except when it’s not. How tired I am of reading these simplistic and worthless investing axioms.

1. upbraid v.
find fault with (someone); scold: he was upbraided for his slovenly appearance. See note at scold .
(From The New Oxford American Dictionary)

Have a great weekend all,

Tim

- Workoholic

I loved your link to Michael James on Money regarding Real Estate Agents.

We have moved numerous times and have paid a small fortune in Realtor fees (approx $80,000 total) . We have made a very nice profit as well but it pains me to pay such high fees for what I consider a very limited service. I think that realtor’s serve a valuable purpose but the fee structure is out of whack. I have no solutions on how to fix the problem, but I am hoping that someone does. I am more than willing to pay $30,000 in realtor fees to sell my house as long as I am getting the best possible price for my house. But when the realtor pressures me to sell my house for a lower price than what it is worth because to them it is worth getting paid $300 less in order to close the deal quickly instead of putting in an extra 30 hours in order to get an extra $300 (even though that amounts to an extra $10,000 to me), I get very annoyed.

There is a chapter in Freakomics that refers specifically to this issue. They do not provide a solution, but they do provide evidence that realtor’s sell their houses for a higher price than their clients (with everything being equal).

For the person that comes up with a workable solution: I hope they become very wealthy because of it. As I stated earlier, Realtor’s provide an invaluable service that I am more than willing to pay for but I want their objectives to be the same as mine (sell my house for the highest possible price).

I have talked to many realtors who state that it is not the money that drives them. I am not convinced.