An interesting entry over at Paper Money on the traditional 6% real estate commission when selling properties.
The 60 Minutes segment merely stated the obvious, questioning the sense of the traditional 6% broker commission as well as pointing out that in the age of the Internet, the traditional real estate broker services are going the way of the buggy whip. There were no new revelations in the segment as these are the very same issues many average consumers have asked themselves in recent years after seeing the obvious disconnect between the standard 6% commission Realtors have established and the actual work performed.
I agree that the efficiencies brought by technology should be putting downward pressure on commission rates. No longer do we have to go on all-day ride alongs with agents shopping properties. We simply log on and click home listings to generate a list of possibilities. Shouldn't we get a cut of that 6% for doing that work ourselves? That rate needs to come down. Sorry, agents!
I may be thinking to myself here, but wouldn't a Wal-mart Real Estate Agent be a great idea? Once you find a house you like, you take the infomation over to Wal-mart where you are greeted at the door by a friendly person asking "Need a shopping cart, or are you filling a prescription or buying a house today?" They direct you to the Wal-mart Real Estate Agent who fills out the paperwork for you, and starts the home-buying process.
Easy!
(Disclosure: Don't own any WMT just yet!)