Monday, November 20, 2006

A cash rebate for your home

One of the worst, most corrupt ideas in history is the 6% commission for real estate agents. Effectively, the 6% commission means that for every 20 homes that change hands in this country, one home is being given to real estate agents. The cost of this insanity boggles the mind.

Many new real estate services are helping to reduce this absurd cost by offering full traditional brokerage services (for both buyers and sellers) at reduced rates. AlCan Realty Partners is one such brokerage dealing in Dallas Real Estate. One of my college roomates recently used AlCan to purchase a new 3 bedroom, 2 bath home in Dallas. He told me about AlCan because--wait til you hear this--he received a 1.5% cash rebate on the cost of the home at closing. In his case, the rebate amounted to about $10,000.

This model makes more sense to me. A full 6% commission is simply unsustainable, and brokerages like AlCan will knock this down over time, which will be to our benefit.

Link: Dallas Real Estate

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