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This ruling helps eliminate incentives that prevented innovation in agent services. There was zero need to innovate because Realtor controlled the entire market
by ssharp 3y ago
This ruling helps eliminate incentives that prevented innovation in agent services. There was zero need to innovate because Realtor controlled the entire market and nobody wanted to give up the cash cow, even though the only people it was really good for was agents.
> I'm also troubled by what the Wall Street Journal claims is that this might push a lot of young realtors out of the career field. That can't be seen as a positive outcome.
I guess that's one way to look at it. This was a service that provided very little value to the people needing the service but there was not really a feasible alternative. Sure some young people who find success in the field may no longer be able to but we shouldn't prop up nefarious businesses just to keep jobs going. Rather, what should be more likely to happen now is that young people will be able to move into this space and start out innovating the old practices, carve out a more impactful and scalable business model for themselves, and still do very well.
> Overall, I'm still unclear exactly how this is going to help anyone. Especially for the overwhelming majority of buyers and sellers who DON'T want to be their own agent, and want to hire the best realtor to do it for them. I remember when this first came out and lots of people on HN said I'll just be my own agent. Well, that's fine, but that's not an option for most people.
This option will almost certainly still be available and will now cost less. If you ever want to hear someone spout of a truckload of B.S., just ask an agent why a 3% commission is justified on either end of the transaction. The value simply isn't there and it's a huge benefit that this initial hurdle has been toppled.