Real Estate Commissions in the USA? (6%, agent, fees, price)
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Why are real estate commissions here in the USA so much higher than Europe? For example, Britain's real estate commissions are typically around 3%, for both sides of the transaction!
As a Realtor, I appreciate the extra cash, and earn it in my opinion, but I do wonder why there is a glaring difference, and with the average commission in the US now down to about 5.5% or so, I wonder if that trend will continue downward. I assume it probably will.
There is no MLS and no sharing of the commission. Buyers are not represented. As a buyer you go to many brokerages to see what they have, and if you don't see what you like, you go to the next broker....
Although their system has worked for hundreds of years...I like our system better.
As a Realtor, I appreciate the extra cash, and earn it in my opinion, but I do wonder why there is a glaring difference, and with the average commission in the US now down to about 5.5% or so, I wonder if that trend will continue downward.
I don't know where you get your informatino that the "average commission in the United States is ....."
As a broker, and real estate licensee for 40 years, I know of NO WHERE that accumulates such information. AND, as a broker, I can tell you that I see commissions ALL OVER THE BOARDS! -
So, perhaps you need to review your "information source"
I have also heard the 5.5% average thrown around. I know that in my office, 5.5% is pretty accurate. Here's an intersting article that I found that discusses why there is a difference b/w the US and UK and why you really can't compare them "apples to apples".
NAR: International Commission Comparison Misleading (http://www.realtor.org/government_affairs/competition/international_commission_comparison_misleading.htm l - broken link)
I don't know where you get your informatino that the "average commission in the United States is ....."
As a broker, and real estate licensee for 40 years, I know of NO WHERE that accumulates such information. AND, as a broker, I can tell you that I see commissions ALL OVER THE BOARDS! -
So, perhaps you need to review your "information source"
My information as to 'average commission' across the US came from the NAR, as well as the Department of Justice. It came out when the DOJ was investigating the NAR for price fixing and anti-competition to discount brokers.
I did review my source, thank you very much.
Besides, that wasn't really the point of the posting; the point was, commissions in the US are much higher than Europe.
I have also heard the 5.5% average thrown around. I know that in my office, 5.5% is pretty accurate. Here's an intersting article that I found that discusses why there is a difference b/w the US and UK and why you really can't compare them "apples to apples".
NAR: International Commission Comparison Misleading (http://www.realtor.org/government_affairs/competition/international_commission_comparison_misleading.htm l - broken link)
Thanks for that article, David. It brings out some interesting points. I do think it's probably slanted our way, as it is written by the NAR. Thanks for your input!
I donot understand why Real Estate agents donot tell their clients that their fees are not standard.
A Real Estate agent can charge up to 6% so their are no standard or set fees.
When I have agents list my home, I always pay 3.5% total.
1% goes to the listing agent
2.5% goes to the buyers agent.
I donot understand why Real Estate agents donot tell their clients that their fees are not standard.
A Real Estate agent can charge up to 6% so their are no standard or set fees.
When I have agents list my home, I always pay 3.5% total.
1% goes to the listing agent
2.5% goes to the buyers agent.
Of course...that is your right. You will not get a competent listing agent in our market and your house will go unsold likely forever. But you will have saved a lot of money on the commission.
One of my previous clients was from England. On our house hunting drives, he explained a bit to me how real estate differs in the UK. From his perspective, we do far more work and provide more service here than agents in the UK. (not a slam towards those international agents. This was his perspective as a buyer and seller on both sides of the ocean.) Attorneys handle many of the details, including inspections, etc. in the UK.
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