Industry News

RE/MAX co-founder sets record straight on real estate commissions

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A Jan. 28 report in The Denver Post newspaper credits Dave Liniger, chairman and co-founder of real estate industry powerhouse RE/MAX International, with a prediction that average real estate commissions will drop to about 4 percent in the next five years. But Liniger told Inman News that wasn't a correct characterization of what he said. Instead, Liniger said this week that his comments related to the declining share of real estate commissions that agents are experiencing -- and not a declining cost to consumers. There are many companies that have sought to play a role in real estate transactions for a share of the commission revenue, and these businesses are having an impact on the compensation to agents who are directly involved in home sales, he said. Sales commissions, he said, are "getting split a lot of ways." Industry research firm Real Trends noted that average real estate commissions have slipped from an average of 6 percent to the low 5 percent range for the past few years....