#THECLOSERSDAILY : EPISODE 159: OVERPRICED REAL ESTATE AGENTS

So in this market? Throw a sign up, take a couple photos, the property's pretty much gonna sell itself, right? So how's the real estate agent justify their commission? First off, you gotta keep in mind, the real estate agents run their businesses. The ones who do professionally will have a 30/30/30 split, so they'll be 30% fees to marketing, 30% fees to the brokerage, and then 30% fee that they actually keep. Second part to that is when a market's hot, it's not necessarily great for real estate agents because they typically have to maybe write three to five deals to get one deal done. So you gotta look at the net net amount that they're making. Now the second part of that, is I'm not just defending real estate agents, they better justify their commissions. The cream rises to the top, and the market drops, so I like those cycles 'cause it really trims the fat. And now more than ever, your real estate agent has to bring you a value prop, more than just a base standard. Or how are they gonna justify their fees? They better be netting you more money, and pay for themselves, that's how we like to look at it.

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