BrokerageIndustry News

Will slowing market add pressure to commissions?

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

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 2.) Last year, Shaina Varia sold her Union City, Calif., home herself, saving about $50,000 in real estate broker fees – thanks in great part to the red-hot real estate market. Now that the market has cooled, will consumers be less willing to try to sell themselves and more willing to pay higher commissions to motivate agents to get them the highest prices? Or will they try to negotiate commissions down or resort to discount services in hopes of saving money? A lot of attention is currently focused on traditional real estate sales commissions as most markets are cooling off record housing booms and the industry's major trade group, the National Association of Realtors, faces an antitrust lawsuit with the U.S. Justice ...