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Why haven't commission percentages gone down over time? It seems like a massive margin that should be trimmed down by competition. I would think there would be
by bostonsre 6y ago
Why haven't commission percentages gone down over time? It seems like a massive margin that should be trimmed down by competition. I would think there would be more than enough room to under cut the standard rates, cover costs and still make a healthy profit. Is there a low supply of realtors that causes them to be in high demand and helps them keep up their commissions or something like that?
- nrmitchi 6y agoThe National Association of Realtors controls a huge percentage of real estate transactions, and works to make sure it doesn't drop, to the point where there are multiple open anti-trust lawsuits. For example: https://www.justice.gov/opa/pr/justice-department-files-antitrust-case-and-simultaneous-settlement-requiring-national https://www.justice.gov/opa/pr/justice-department-files-anti... Basically, if you don't play the Realtor game and agree to pay those commissions, it's difficult to participate in the market at large.
- wombat-man 6y agoYeah I mean you're kinda paying to make everything go smoother and ideally their experience in the market will help prevent you from making an expensive mistake. As long as you have a good one, of course.
- bostonsre 6y agoAh, thanks.. that makes a lot more sense then. Hopefully the justice department stops that BS rent seeking crap.