Change is in the air for Boston real estate commissions
Boston Condos for Sale and Apartments for Rent
Change is in the air for Boston real estate commissions
These authors have written other articles about realtors and commissions, and in the beginning this one sounded like another hit piece. Like most, they didn’t make any attempt to understand the commission pay structure or the depth of the work involved. Instead, they just gathered the commission rates and concluded that nothing has changed much.
But their summary offered an intriguing solution:
In terms of policy, what must be done to ensure meaningful price competition in the industry? Our recommendation is to revive and prioritize the call for complete separation of buyer and seller compensation with buyers and sellers each compensating their own agents.
The most practical way to facilitate this separation is for federal agencies to more easily allow buyers to include buyer agent compensation in their mortgages. Over time, with mortgage lenders also offering this opportunity, this compensation, now implicitly financed as part of the sale price, would be explicitly financed, allowing much more meaningful buyer negotiation with their agents.
The industry may think that they have been successful in preserving traditional buyer agent rates of 2.5% to 3%. However, the glaring price uniformity that continues is prima facia evidence of the lack of effective price competition. There is little, if any, relationship between these commission rates and agent competence, reputation, or effort on an individual sale.
This uniformity, and the fact that rates are higher in the U.S. than in most other countries, exposes the industry to more litigation and antitrust enforcement. However, the industry could avoid these threats and help ensure a gradual transition toward a more price competitive market by supporting the ability of buyers to include buyer agent compensation in their mortgage loans.
Change is in the air for Boston real estate commissions
You know a lot about a Boston real estate agent performance. You can see how long their condos for sale in Boston have been on the market and how likely they are to sell for above estimate. You can measure buyer and seller satisfaction. So, when it’s time to put a your Boston condo on the market, why not have every broker make a commission bid instead of choosing the one who has a lot of signs around town?
Peace be with you
Updated: 2025 Boston Real Estate Blog
Ford Realty Beacon Hill – Condo for Sale Office
Boston condos for sale – Ford Realty Inc
Updated: Boston Condos for Sale Blog 2025
John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
______________________________
Change is in the air for Boston real estate commissions
The justice department pushed back on a proposed settlement in a Boston-based lawsuit over broker commissions, pushing for the listing service to “prohibit sellers from making commission offers to buyer brokers at all,” in a change that “would promote competition by having Boston condo buyers to negotiate directly with their own brokers.”
Boston Condo Sellers and Buyers
Some forecasts claimed the move would cool home prices. Many have dismissed those projections as overblown, but it is clear that the settlement terms mean the burden of commission costs won’t be automatically assigned to sellers.
Boston condo buyers and flat fees
Boston condo buyers can try to go bare-bones, paring down the assistance they need with buyer brokers.
Now, Boston condo buyer brokers are laid bare for negotiation. Boston condo buyers, that use buyers agents, will likely be in charge of tallying the costs related to their representation earlier in the process through exclusive agreements or flat fees for their services.
Boston condo for sale commissions
If the proposed agreement holds, it will take Place July 2024.
My thoughts as a Boston condo for sale broker
The mere prospect of a future settlement has already caused some Boston condo for sale sellers to change their behavior when selling their homes. Numerous Boston condo Sellers are waiting for the new rules to take effect in July to lower — or even eliminate — the commission they offer to buyers’ agents.
Some prospective homebuyers said they plan to restart their housing search after the new rules to take place, hoping to see lower prices.
If approved by a judge, the settlement could have seriously effect Boston condo buyer agents.
+++++++++++++++++++++++++++++++++++
Updated: Boston Real Estate Blog 2024
Click here to view Google Ford Realty Reviews
Ford Realty Inc., Charles Street, Beacon Hill
Click Here to view: Google Ford Realty Inc Reviews
Boston Beacon Hill Condos for Sale
Updated: Boston Real Estate Blog 2024
Condo Broker 137 Charles St. Boston, MA 02114
Visit our office at 137 Charles Street (Rear), Beacon Hill MA 02114
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
Beds
Baths
SqFt
The property listing data and information, or the Images, set forth herein were provided to MLS Property Information Network, Inc. from third-party sources, including sellers, lessors, landlords, and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information, and the Images, are for the personal, noncommercial use of consumers having a good faith interest in purchasing, leasing, or renting listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing, leasing or renting. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information, or as to the accuracy of any of the Images, set forth herein.
Beacon Hill Condos for Sale
Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill
