My current thoughts is that I agree with you - I don't think the commission will make a dent in prices. It'll probably be beneficial to sellers to some extent. I think house prices are quite strongly determined by local income/job opportunities (actually wrote several lengthy pieces on this and how to model it intuitively - https://www.nominalnews.com/p/illustrative-model-of-housing-prices ).
However, there might be other welfare effects that are difficult to account for - maybe we had too many real estate agents and it wasn't an efficient allocation.
For sure it will make certain agents deviate from the market, but agents that understand what’s happening and have a PHENOMENAL company like Keller Williams behind them teaching them and thoroughly explaining to them how to get ahead and stay ahead will make agents ready for the change
My current thoughts is that I agree with you - I don't think the commission will make a dent in prices. It'll probably be beneficial to sellers to some extent. I think house prices are quite strongly determined by local income/job opportunities (actually wrote several lengthy pieces on this and how to model it intuitively - https://www.nominalnews.com/p/illustrative-model-of-housing-prices ).
However, there might be other welfare effects that are difficult to account for - maybe we had too many real estate agents and it wasn't an efficient allocation.
For sure it will make certain agents deviate from the market, but agents that understand what’s happening and have a PHENOMENAL company like Keller Williams behind them teaching them and thoroughly explaining to them how to get ahead and stay ahead will make agents ready for the change
I love this take! 🔥
I look forward to seeing how this changes the market