>Honest real estate agents who try to match real needs to real properties were totally displaced (or outcompeted) by agents who spam fake ads in order to secure an exclusive contract with unfair terms and sell you the biggest property you can afford with no regard of your actual needs. The Fed in turn backstops any losses and buys toxic mortgages perpetuating the scheme.
There's lot's to criticize about real eastate agents but this ain't it. Try taking huge commissions for a disproportionate amount of work from the value of the house for one.
It's only disproportionate for buyer's agents in a buyer's market or seller's agents in a seller's market when the cost of a crap shack is $800k+ - which unfortunately is a growing part of the country.
If you're unaware - the brokerages can take up to 40% of the agent's commission. That's where the real rip off is.
There's lots of places where the median home is still <$250k. It's a lot of work to sell that house (in a buyer's market). In a seller's market - it's a lot of showings and offers before something gets accepted.
70% of 3% of $250k = $5250
Typically, R/E agents are 1099 - which means they're paying ~10% more income tax in the employer's side of Medicare and Social Security.
That's $4446 after payroll tax but BEFORE income tax.
You're lucky if you're selling >1 house a month.
Just because real estate agents aren't writing code and aren't making doo-dads, doesn't mean they're doing nothing, or that their time is worthless.
There's lot's to criticize about real eastate agents but this ain't it. Try taking huge commissions for a disproportionate amount of work from the value of the house for one.