Real Estate Industry - cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board

jay santos · 01-17-2007, 03:58 PM

Has too much fat in it. I see a couple threads on CB about this. I've had a few experiences lately and have been thinking about it some.

Realtors, Mortgage brokers, and Title Officers all spend over 50% of their time "marketing" or scavenging for clients.

I recently learned that the title insurance you pay at closing goes 80% to the title company who doesn't do anything. They're just a middle man. They then send on about 20% of the title insurance on to a real title insurance company to pay for a title insurance policy. They also charge you a title fee and other small fees which they pocket. Title officers work on commission.

Realtors, mortgage brokers, and title officers add very little value to the process and collect a total of up to 10% on the sale of a home.

I predict widespread reform in these areas. The fat will be stripped out of these industries so that they are paid for their added value no more no less. I predict in 20 years that 10% figure will be cut in half and headed lower.

Of course realtors and other associations use part of this fat on massive PR, advertising, and lobbying government to protect their empire. Recently the Utah realtor lobby group tried to create a bill that no broker could list a home for under certain percent because they were trying to protect the consumer from less-than-full-sevice brokers that would hurt the consumer. HA! But this kind of crap can't last forever in today's marketplace.

01-17-2007, 03:58 PM	#1
jay santos Senior Member Join Date: Jan 2006 Posts: 6,177	Real Estate Industry Has too much fat in it. I see a couple threads on CB about this. I've had a few experiences lately and have been thinking about it some. Realtors, Mortgage brokers, and Title Officers all spend over 50% of their time "marketing" or scavenging for clients. I recently learned that the title insurance you pay at closing goes 80% to the title company who doesn't do anything. They're just a middle man. They then send on about 20% of the title insurance on to a real title insurance company to pay for a title insurance policy. They also charge you a title fee and other small fees which they pocket. Title officers work on commission. Realtors, mortgage brokers, and title officers add very little value to the process and collect a total of up to 10% on the sale of a home. I predict widespread reform in these areas. The fat will be stripped out of these industries so that they are paid for their added value no more no less. I predict in 20 years that 10% figure will be cut in half and headed lower. Of course realtors and other associations use part of this fat on massive PR, advertising, and lobbying government to protect their empire. Recently the Utah realtor lobby group tried to create a bill that no broker could list a home for under certain percent because they were trying to protect the consumer from less-than-full-sevice brokers that would hurt the consumer. HA! But this kind of crap can't last forever in today's marketplace.