Culling The Herd Part II

Which cow will survive the cull?

Sometimes I find really interesting things on Youtube.

When I was searching for a video for my "Culling The Herd" post I came across this.




I could not pass up the chance to showcase the way traditional real estate works. There is no doubt that the high cost of using an agent has, in part, to do with the many people taking their piece of your house equity.


Using the example in the video the traditional agent would take $6,000 out of a $10,000 commission with $4,000 going to the broker. Funny how $4,000 of your homes value goes to someone you have never met just because the person that sold your house decided to work in their office.

Back to my point. If less and less deals are happening then more and more agents are going to be forced to have to pay their monthly fees out of their pocket. People that are doing things "part time" will find that it actually costs them money to be an agent. The ones with bad reputations will find the deals are harder to come by. The ones that have not spent the last year working their butts off to grow their business will wonder why no one is calling them.

The market will cull the herd and the agents that provide good service will find that good service is no longer what sets them apart. It will be interesting to see who raises above. I suspect it is someone that offers their clients what they want and need at a reasonable cost.

We'll see.

M