A new report on real estate commissions and fees reveals that consumers are questioning the value they receive from the traditional structure since they are doing much of the research themselves.
A report for buyers and sellers of real estate about how to negotiate with a Realtor on commissions was released this week. The topic of real estate fees is becoming a much-debated topic on blogs and talk radio shows, as the internet has made it easier for consumers to do much of the work themselves.
The report comes from an interpretation of the comments discussed on the Barry and Larry Radio show on Sept 9, 2018 and commentary from the author. The report may be found here: http://buyeragentsearch.com/real-estate-agents-fees-commissions-and-costs/ along with a link to the full one hour broadcast of the show.
The host of the radio show discussing how a real estate commission is built within the price of homes for sale in the United States that is typically split between the buyer’s agent and the seller’s agent. Many consumers are starting to see that this fee is negotiable and may be trending downwards with the advent of discount brokerages. Consumers are encouraged to question their full-fee Realtor about what they do to earn the commissions or fees that will come out of the transaction at closing to pay them.
The report warns that discount agents may also be providing less services than full-commission agents, but to interview agents to find out exactly what services they provide.
A question is raised about whether real estate agents are performing less work for the same commissions they may have charged 10-15 years ago, or are they simply doing different things. Consumers have many internet based tools available to them that involve locating and reseaching properties. Because home prices have gone up far faster than the rate of inflaction, the agent is making more money per transaction than in the past. There seems to be little discussion with buyers and sellers about their part, and possibly reducing the commissions based on the work done by their clients.
However, for the first time in recent history, consumers are starting to see non-traditional commission and fee structures from agents competing for their business. The work load done by the agent throughout the transaction should determine the fee and commission rate. It should be fair, justified and reasonable.
The report also covers ways to find agents who will be the most skilled and loyal, including three important questions to ask when interviewing an agent.
