Industry News

FTC releases real estate guide for sellers

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The Federal Trade commission has released a real estate guide for consumers that includes information about commissions, contracts and business models. The guide, "Selling Your Home? Tips for Selecting a Real Estate Professional," notes that real estate commissions are negotiable. "They are neither fixed by law nor by any local real estate associations (at 6 percent or any other level)," the guide states. "A traditional full-service broker generally charges more than a nontraditional broker, and if you hire a nontraditional broker you can expect to pay higher fees if you purchase more services." When working with a nontraditional real estate broker, the guide notes that sellers may have to do more of the work themselves. "For example, some nontraditional brokers offer a Multiple Listing Service-only package, which includes listing the property on the local MLS for a flat fee: you would be responsible for every other aspect of the transaction, like advertising, running open houses, ne...