Skip to main content

Real Estate Agents See Smaller Commissions

Aug 12, 2016
Although home prices are on the rise, it appears that many real estate agents are making less money on their home sales while others are being shut out completely from the home sale process

Although home prices are on the rise, it appears that many real estate agents are making less money on their home sales while others are being shut out completely from the home sale process.

According to a new survey by Redfin, 60 percent of homeowners that sold their property over the past year got a discount on the commission they paid to their real estate agent. Forty-six percent of homebuyers reported that their agent gave them refund or closing cost contributions of more than $100, with the average savings amount for that group being $3,693. Thirty-seven percent of buyers claimed the savings they received from their agents were worth $500 or more.

But that covers the buyers and sellers using real estate agents. Redfin also determined that 10 percent of sellers listed their home without an agent’s help, while 23 percent homeowners selling properties worth more than $1 million opted to travel the for-sale-by-owner route. And 54 percent of sellers stated they did not use a full-service agent for their transaction in order to save money.

“While market forces are driving home prices up, innovation is helping to drive commissions and fees down,” said Redfin’s chief economist Nela Richardson. “These survey findings suggest that the industry is becoming more dependent on technology and less dependent on the local agent as the sole source of information about homes for sale. The fact that savings are so widespread indicates that agents and brokers are adapting by using technology to work more efficiently and charge less money.”

About the author
Published
Aug 12, 2016
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024