Real Estate Agents and Rental Brokers
Wednesday, June 13th, 2007Someone needs to explain this to me. In this age of Craigslist where real estate and rentals are posted completely free of charge by owners, why is there still a need for real estate agents and rental brokers? Why aren’t people using what is free and instead enriching people who really don’t add much value to the transaction?
Why I bring this up: Recently my wife and I purchased our next home. Before I moved in with her in our current place, I owned my own apartment, and she owned the one we currently reside in. Given the current state of the real estate market, we decided that instead of selling each condo, we would find tenants for each and rent them out. Easy enough; we posted on Craigslist, and there was moderate interest, but no one bit.
Then rental brokers found the Craigslist ad. It turns out that brokers now monitor Craigslist for apartment listings, and then re-list these apartments as their own. (There are actually separate sections on Craigslist – one for rental by owner and one for rental through an agency). And the surprising thing to me is that once they list it on their own services, we got a lot more interest. And were actually able to rent both places. However, the difference is that now there is a broker fee: a full month rent split between the renter and the landlord has to be paid to the agency.
This is patently stupid.
If people would just put a little more effort in, they could find those apartments that are free of broker fees, and save themselves half a month of rent. Its ridiculous to me that with all the free services out there one could use to list or find an apartment, people are still paying what essentially adds up to a middle man.