There's no such thing as a Realtor tax: Here's what they're missing

Claims that a Realtor tax is driving the housing affordability crisis are inaccurate and misleading. Homeowners can sell For Sale by Owner and buyers and sellers can choose from lower-fee brokers, flat-fee services, or full-service representation. Realtors typically receive no salary and invest time and money upfront, earning payment only when a client's transaction closes. If a deal fails, agents receive no compensation and often absorb expenses. Labeling realtor fees as a tax ignores consumer choice, competitive business models, and the financial risk borne by independent real estate professionals.

"Benjamin Franklin famously said that nothing in life is certain except death and taxes. When I saw a recent article by Robert Bork Jr. claiming that the affordability crisis is due to some sort of Realtor tax, I stopped in my tracks. The only Realtor tax I'm aware of is the 15% self-employment tax I'm subject to as an independent contractor, above and beyond the taxes everyone else pays!"

"Choice, not a tax Here's the first thing we need to get straight: there is no requirement to use a Realtor. Homeowners have always had the option to sell For Sale by Owner (FSBO). On top of that, buyers and sellers today can choose from a wide variety of business models, from lower fee brokers to flat-fee services to full-service concierge representationand spoiler alert-it's been that way forever. When critics claim there's some baked-in, guaranteed fee that artificially inflates housing costs, they're ignoring reality."

"Let me remind you how Realtors actually earn their pay. I don't get a salary, nor do most of the professionals in this industry. I only get paid at the closing table of a client's successful transaction.That means months of prepping, showings, marketing, negotiating, advising, and troubleshooting-all of it on me, no guarantee of compensation. If the deal doesn't close, I don't get paid. Period. In fact, I'm out of pocket since much of what we do to help a client succeed requires me coming out of pocket in advance."

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