Industry NewsTechnology

Internet drives down real estate commissions

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A rise in Internet research by prospective home buyers is lowering real estate broker commissions in certain parts of the country, according to a research team's findings. The research team, which included Rolf Wigand of University of Arkansas at Little Rock, conducted a survey of 4,600 real estate agents, selected at random, according to the news report. Wigand, along with Kevin Crowston of Syracuse University and Steve Sawyer of Pennsylvania State University, have studied the use of information technology in the real estate industry through a grant project funded by the National Science Foundation. Researchers have received two grants worth a total of $360,000 from the science foundation. Is the Internet driving down real estate commission? Take a survey. Researchers reported that the traditional real estate industry views online brokers and agents as a threat, especially since more than 70 percent of all home buyers begin their search for a new home on the Internet. Competition bet...