US homeowners negotiating lower commissions with brokers

Illustration by Lexi Pilgrim for The Real Deal

 

From the New York website: For many residential brokers across the country, negotiations are increasingly starting long before a prospective buyer walks through the door.

 

A new survey by online real estate brokerage Redfin finds that 60 percent of people who sold a home in the United States over the last year got a discount on fees from their agent, according to Bloomberg News.

 

On average, brokers were taking a 41 percent haircut on their commissions, according to Redfin.

 

The commission cuts could be due to tight markets creating increased competition among agents, as well as higher sales prices and less time on market. Or, in a theory advanced by Redfin, agents could be seeing pressure from real estate tech startups like Redfin, which charges sellers 1.5 percent to list a home.

 

A more realistic theory, according to Bloomberg, is that agents with more expensive listings have more wiggle room because they receive larger commissions. [Bloomberg]Rich Bockmann

 

Advertisements
Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s