BrokerageIndustry News

Real estate discounters are all around

Part 2: The real estate commission question: Up or down, why?

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Editor's note: Every few years, Realtors and their commission structure come under scrutiny and it is happening again now. In this three-part series, we examine whether commissions are going up or down and what's adding pressure to the debate. (See Part 1 and Part 3.) Discounting may still be taboo to some real estate professionals, but a lot of full-service sales agents offer discounted services – at least for some of their clients, some of the time. Agents have said that they might offer lower rates to a client who is working with them for both the sale of their current home and the purchase of their new home, for example, or give a break to friends, longtime clients or family members. Some industry professionals claim that lowering costs for real estate services will drain quality from the real estate industry, while others say the industry is ripe for change – especially when it comes to a decades-old commission structure that has led to greater profits per transac...