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March 28, 2008

The Return of the Six Percent Commission

Commissions are rising. That's the word on the street at least.

In fact, I spent time today with an office manager who
works for a multi-office brokerage. She's eyed several of the contracts that
have passed through the office recently and says for the first time in two
years agents are getting a full three percent on both ends of the deal
again...

This goes against everything we've been hearing and this could be the
beginning of a welcome change. Because we've all been told the internet,
discount brokerages and competition would drive down commissions.

So I asked around. While not everyone agreed commissions were rising, some
Realtors are seeing the tide turn. They say: Agents are having to carry
houses longer, which means picking up the expenses for longer staging longer and more marketing...They need to cover those costs, so commissions are higher.

Where do you think commissions are headed?

Posted by Jeff Brooks on March 28, 2008 12:05 AM |

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Hard to say. My hunch is that anybody who thinks that the real estate business, either locally or nationally, is going to return to the good old biz as usual days is probably smoking something naughty.

Technology is touching and changing almost every aspect of everyday life. What keeps agents in business is the enormous legal and financial complexities of doing an actual deal - and a willingness to assume the niggling details of marketing a property. Most people are perfectly willing to pay for that service. The real question is, "How much?"

Time will tell.

Posted by: Bill Quick [TypeKey Profile Page] | March 28, 2008 07:18 AM

I think that there will continue to be an increasing diversity of real estate service offerings at both the low end and at the high end. Thus, it may just depend on whose commissions you are counting.

Posted by: portlandrealestate [TypeKey Profile Page] | April 1, 2008 10:44 PM

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