Create an Email Alert
Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
This alert is for the following:
- Topic:
- Time to reform commissions paid to real estate ...
Time to reform commissions paid to real estate agents
sponsored by
wildonion773
Contributions: 28
View full profile
In the typical home sale, the seller and seller?s agent write a contract agreeing to a seller?s agent commission and a buyer?s agent commission if the buyer has an agent.
If the buyer does not have an agent, the seller and seller?s agent agree in the contract to split the buyer?s agent commission for themselves. For example, the typical seller?s agent commission is around 3% and the typical buyer?s agent commission is also around 3%. If the buyer does not have an agent, the seller?s agent may take the original 3% seller?s agent commission and a 2% buyer?s agent commission. The seller gets to keep the remaining 1% buyer?s agent commission.
Since all of this is agreed to in a contract between the seller and the seller?s agent, the independent buyer is prevented from competing for the buyer?s commission. The seller and seller?s agent are effectively overcharging independent buyers, inflating housing prices, and eliminating any competition.
The internet has fundamentally changed the real estate business. It has made it very easy for a home buyer to purchase a home on their own. The MLS is now available on many web sites and allows anyone to easily search for the type of house they want. In addition, there are many web sites that will let you check recent home sale prices in the area you are interested in such as Zillow. Setting up appointments to see a home is a simple email or phone call. Attorneys can, and in my opinion should, be hired to write and review contracts and attend the closing. For a typical sale, the fee is less than $1,000. So unless you are new to town, need a very expensive chauffer, or do not like to bargain, a buyer?s agent really is not necessary (continued next post).
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.