Tag: real estate commissions

Defying Logic, Real Estate Commissions Rise

Defying Logic, Real Estate Commissions Rise
RealTrends is a residential real estate brokerage industry publishing and consulting company that analyzes various industry trends. Not quite a year ago they ran an article on the impact of inventory, brokerage models, and referral fees on real estate commissions. One of their more compelling arguments was their claim that lower listing inventory resulted in... Read more »

How Home Buyers And Sellers Can Navigate The Cooperating Commission

How Home Buyers And Sellers Can Navigate The Cooperating Commission
On Thursday I explained how cooperating commissions work, who pays them, and what impact it has on real estate transactions. What I put off until today was the various options that home buyers and sellers have in lowering the cost of these commissions – although I did mention how home sellers could take advantage of... Read more »

The Truth About Coop/ Buy-side Real Estate Commissions

The Truth About Coop/ Buy-side Real Estate Commissions
A couple of weeks ago I wrote about those allegations of conspiracy and collusion. No, not Russian interference in our election. I’m talking about that class action lawsuit regarding alleged price fixing with regard to real estate commissions. It centers around cooperating (buy side) commissions – why they are needed and how they are priced.... Read more »
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Home Sellers File Real Estate Commission Class Action Lawsuit

Home Sellers File Real Estate Commission Class Action Lawsuit
Wow! On some level I’m really enjoying this. I’ve always maintained that real estate commissions are just too damn high. So imagine my amusement when a class action lawsuit is filed, claiming that 4 of the nation’s largest franchised brokerages conspired with the National Association of Realtors to fix real estate commissions in 25 cities.... Read more »

It's Not A Realtor Conspiracy Keeping Real Estate Commissions High

It's Not A Realtor Conspiracy Keeping Real Estate Commissions High
Last week an editorial appeared in the Wall Street Journal: When You Buy or Sell a Home, Realty Bites. The article was written by the guys at REX, an early stage company that helps sellers sell their homes off the MLS without paying a cooperating commission which I wrote about last month: $75 MM Investment... Read more »

$75 MM Investment In REX Homes Makes No Sense

$75 MM Investment In REX Homes Makes No Sense
A few weeks ago REX Homes, another real estate startup with a unique business model, raised an additional $45 MM in a third round of financing, bringing their total to $75 MM since they were founded in 2015. God knows the real estate industry is in sore need of new business models. Home buyers and... Read more »
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How Dual Agency Affects Commissions And Rebates

How Dual Agency Affects Commissions And Rebates
Last week I wrote about how some researchers had measured the cost of dual agency transactions. They were able to determine that home sellers lost roughly 1.4% of the purchase price even when dual agency was disclosed. However, there are also some additional impacts on the home buyer and the seller and it all has... Read more »

This Sure Looks Like An Attempt To Collude On Real Estate Commissions To Me

This Sure Looks Like An Attempt To Collude On Real Estate Commissions To Me
Inman is a real estate industry news site and about 6 weeks ago they ran an interesting story about a panel discussion in which a “Brokerage CEO slams Purplebricks over low-commission model“. The CEO in the spotlight was Steve Games, the CEO of Pacific Sotheby’s International Realty, and the story was about how he went... Read more »

More Reasons Why Real Estate Commissions Are So High

More Reasons Why Real Estate Commissions Are So High
I’ve written on numerous occasions about why real estate commissions are so high, covering a wide range of reasons like wasted time, the cost of friendships, and lead acquisition cost – none of which have anything at all to do with the value of the service provided. Recently I ran across a special report from... Read more »
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How To Avoid A Procuring Cause Issue

How To Avoid A Procuring Cause Issue
Several weeks ago I posted on the arcane real estate concept of procuring cause and how it can burn unsuspecting home buyers that fall into its many traps: Procuring Cause: How You Can Get Stuck With A Real Estate Agent. If you are not familiar with the issue and its implications you need to go... Read more »