Pressure on Commissions Continues to Rise
Agents pressure brokers for more generous splits, while consumers ask for discounted commissions.
(Boonton, NJ, October 20, 2016) — Get ready for agents to demand a bigger share of their commissions. Realogy, the nation’s biggest brokerage firm, says it’s being squeezed by that very trend. The company expects its average split to edge up toward 69 percent.
Just as agents are pressuring brokers for more generous splits, consumers increasingly are asking agents to discount their commissions.
Fully 60 percent of people who sold a home in the past year said they got a discount on the commission they paid to their real estate agent, says Seattle-based brokerage Redfin. The average discount was 41 percent off the typical commission.
Among people who bought a home in the past year, 46 percent said their agent gave them a refund, rebate, closing cost contribution, or other form of savings worth more than $100, with the average discount totaling $3,693.
Details on commission trends appear in the October issue of Real Estate Broker’s Insider newsletter.
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