"Benjamin Franklin famously said that nothing in life is certain except death and taxes. When I saw a recent article by Robert Bork Jr. claiming that the affordability crisis is due to some sort of Realtor tax, I stopped in my tracks. The only Realtor tax I'm aware of is the 15% self-employment tax I'm subject to as an independent contractor, above and beyond the taxes everyone else pays!"
"Choice, not a tax Here's the first thing we need to get straight: there is no requirement to use a Realtor. Homeowners have always had the option to sell For Sale by Owner (FSBO). On top of that, buyers and sellers today can choose from a wide variety of business models, from lower fee brokers to flat-fee services to full-service concierge representationand spoiler alert-it's been that way forever. When critics claim there's some baked-in, guaranteed fee that artificially inflates housing costs, they're ignoring reality."
"Let me remind you how Realtors actually earn their pay. I don't get a salary, nor do most of the professionals in this industry. I only get paid at the closing table of a client's successful transaction.That means months of prepping, showings, marketing, negotiating, advising, and troubleshooting-all of it on me, no guarantee of compensation. If the deal doesn't close, I don't get paid. Period. In fact, I'm out of pocket since much of what we do to help a client succeed requires me coming out of pocket in advance."
Claims that a Realtor tax is driving the housing affordability crisis are inaccurate and misleading. Homeowners can sell For Sale by Owner and buyers and sellers can choose from lower-fee brokers, flat-fee services, or full-service representation. Realtors typically receive no salary and invest time and money upfront, earning payment only when a client's transaction closes. If a deal fails, agents receive no compensation and often absorb expenses. Labeling realtor fees as a tax ignores consumer choice, competitive business models, and the financial risk borne by independent real estate professionals.
Read at www.housingwire.com
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