Realty commission conundrum
Industry price debate heats up.
Real estate commissions once again are at the center of debate. A recent "60 Minutes" television segment on commissions and a report issued jointly by the Justice Department and Federal Trade Commission have prompted dialogue around the questions, "Are real estate commissions too high?" and "Does the industry create artificial barriers to lowering them?"
While some forms of discounted real estate services have been around for decades, the Internet has enabled some brokerage firms to instill efficiencies, which they say allows them to cut costs and pass savings onto consumers.
But critics within the industry argue that these efficiencies many times are at their expense. Many discount firms, they say, are able to cut costs by shoving the workload onto the agent working the opposite side of the deal.
Further complicating the debate is a lack of information about commission rates, and recent data indicates the median income of Realtors has decreased.
In this three-part special report, Inman News looks at recent research on commissions, the mystery around what agents and brokers can and cannot legally discuss, and how the new discount entrants are collaborating up to add pressure to price.
- Part 1: "Critics come down on commissions"
- Part 2: "'Mum' is sometimes the word with commissions"
- Part 3: "Discount brokerages band together"
Price: $79.00
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