Yesterday, the Globe and Mail posted a tear-jerker about how real estate agents (I mean ‘REALTORS’) in Toronto have to work for their commissions. Between the home staging and conversations with clients, we’re supposed to feel sorry for the agents splitting a $75,000 commission on a $1.5 million home.
That’s $75k split between a selling agent who posts the listing on a website and a buying agent who is a glorified taxi driver. Throw in a little paper work and what are we looking at? 5-10 hours of real work? Hell, even if they put in 50 hours of work each, that’s still comes out to $375/hr for each agent. I should have become a real estate agent.
Some agents in this whirlwind of a market are happy to take your money and run. The ones with more integrity are starting to warn clients about the risks inherent when buying into an insane market. Remember, a home is likely the largest item on the average person’s personal balance sheet so a little sober advice is welcomed.
Anecdotally, one of the commenters relays what three of his real estate agent buddies are doing:
Agent 1: They sold their home with the comment this is unsustainable and stupid. We are taking the money and running and renting.
Agent 2: "This is a bubble" and they sold principal home and trying to sell income property to off shore buyers as they really don't care about pricing.
Agent 3: Third agent posted on Facebook that if you are looking to buy a house in this market don't. This is a bubble and if the market backs off which it will then you could lose your equity. Wait for the correction.
My guess is that many other real estate professionals in Toronto are also cashing in their real estate chips.