Cutting real estate commissions would generate sales

So says this study. I don’t particularly like its results but judging from the comments there are people out there who don’t like real estate agents. I’m shocked.

8 Comments

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8 responses to “Cutting real estate commissions would generate sales

  1. Anonymous

    what’s a greater revenue multiplier in the overall economy–commission money saved by seller, or money earned by seller/buyer agent(s)?

    a rhetorical question of course…

    it’s surprising that the r.e. profession has been able to maintain its commission structure, in scale (i.e. nationwide) this long. at what point does competitive pressure from new entrants/selling channels start to have an effect on the traditional business model? seems the fsbo model will always be fubar, but what else is out there?

  2. My personal experience using one realtor for the past twenty-five+ years for our Bedford sales/ purchases is that she made her commission work within the confines of the deal, which often meant she’d take the hit rather than us walking or the deal failing. I think any GOOD broker would do the same. I say the study is malarkey. That said, I don’t know how many GOOD brokers people experience in their lifetime and maybe most people only buy and sell once, hence the negative comments about real estate professionals.

  3. Fred2

    Thought it was just lawyers they hated, didn’t you?

  4. Everyone hates lawyers until they need one.

  5. Fred2

    Seriously, it seems to me that bid/price ratio’s are off by 50-100%

    Seems to me a couple of %’s here or there is the least of anyone’s worries.

  6. Interesting that many of the comments in that article seem to think that commission is always the same or is not negotiable.

    If the seller is willing to list at my suggested list price, then I am willing to go lower on the commission than my competition. If they will go lower than my suggested list price, then I am willing to go even lower. If they want to list at a crazy price (higher or overpriced), then my commission goes up dramatically.

  7. Wow – only 5% commission? Here in BC we pay 7% on the 1st $100,000 and 3.5% on the balance of the sale price (the average family home here is $500,000). Ex if you were to sell your property for $500,000, commission is $21,000 + gov’t tax of 12% HST + $2,520. Total realtor’s fees for selling $500,000 property $23,520. Add to that – the property you buy now has a 12% HST price tag on it, plus property transfer tax..etc, etc…. Our realtors here in BC make a a very good living (altho there is extreme competition because there are so many realtors) because of the cost of housing. Now, my sister who’s a realtor in NS – makes considerably less than that on her sales – because the cost of housing there is so much less.