210
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 15 Mar 2024
210 points (99.1% liked)
News
23301 readers
1619 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 1 year ago
MODERATORS
The percentage is one issue. While it takes more work to find the buyer for a $10 million home than for a $200k home, it doesn't take $488,000 more work. But that's an edge case, since not many of those are sold so it is more about the lack of volume requiring more money. The real issue is in places like SoCal where every house costs a million, so every commission is $60k. That's a big chunk of change for average buyers trying to get into a starter home.
I mean it also just continuously inflates the price every transaction cycle because that cost gets baked into the loan.
So you are adding substantial inflation to home prices with that 3-6% if the average home is bought and sold ~10 years.
There's a broader concern to the American economy in discouraging labor mobility. There is a benefit to the country's economy in having a mobile labor force and high transaction costs discourage labor mobility.
It's one argument to have more people renting, as there's a lower cost to move for renters than owners.
A country benefits if workers are relatively able and willing to move to wherever demand for labor is. If there's an artificial barrier to such a move, then it makes it harder to connect workers and demand for labor; a worker would be artificially-inclined to work in a less-productive job that didn't require a move and it's harder for an employer who has some more-productive job to manage to get workers.
https://en.wikipedia.org/wiki/Labor_mobility
That being said, I understand that the American labor force has historically been relatively-mobile, though I recall reading that that has fallen off in recent decades (maybe it's due to the process of urbanization starting to wrap up in the fairly-developed US, as I'm sure that urbanization drives some labor mobility -- gotta move if one is to move to a city).
Can you explain this? I can't make sense of it. If it's a fixed rate, I don't see how it adds to the inflation of the home value.
If you buy a house for 100k, it has a 6k commission baked in the price, so the seller gets 94k. But that 94k only matters to that seller, you still need 100k to break even, plus another 6% to get into the green after your sale's commission. So your break even price is now 106,360. And your buyer's break even price will be 6% on top of that and so on.
Because it's a % of the price, it's exponential growth. If it was a fixed number, it would just be linear growth.
The general idea of saving 15 to 20 percent for a down payment becomes a lot less worthwhile of a grind when that money all goes to realtor fees.