BrokerageIndustry News

Discounters, new agents add pressure to home-sale commissions

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

The majority of real estate agents in a recent survey said that home sellers are more likely to negotiate commission rates today than a year ago, and that companies offering discounts have had the most impact on their sales commissions in the last year. That's one of the key findings in an Inman News research report, "The State of Real Estate Commissions: 2006," released today. The report also includes findings about agents' business cost structures, what they typically spend to market and advertise property listings, and how their splits with brokers work. Real estate commissions have come under fire after record-breaking home sales and price growth in recent years have placed a spotlight on the costs involved in a typical home sale. Critics have questioned the structure of traditional commission rates, which typically are a percentage of the home-sale price, and have raised specter about the value of key services performed, asking why some companies offer steep discounts while othe...