Real Estate Agent Commissions
Real Estate Agent commissions are usually fixed before the buyer purchases a home and has traditionally been about 6 percent of the sale price. This percentage was thought to be fair enough by all concerned in a home transaction - buyers, sellers and agents - for the work involved.But the record levels of growth in real estate prices have raised questions about the agents retaining the same brokerage percentage for the same work done. For example prices are doubling in some markets every 2 years. In such markets the agent will be earning double the money he was earning a couple of years ago for the same work. Buyers and sellers feel this is unfair and agents need to reduce their commissions to more reasonable levels.
In fact there has been some cut-throat competition going on with agents slashing their percentages steeply in order to get more business but other agents feel this is at the cost of good customer service. The agents are cutting corners and not delivering the same level of service as before to the home buyer/seller.
More and more agents are realizing that six percent is rather unrealistic and offering their services at 4 to 4 1/2 percent for the same or even higher quality of service than before.
But then much depends on individual brokers and their work ethics and how they deal with their clients. It is for the buyer/seller to choose a good agent who offers great service.
After all home purchases are huge commitments and a discount broker offering sub-standard service could lead you to regret for a life-time
