Downtown Boston real estate commissions: Simply Explained!

Q: Does it make sense to shop around for a real estate agent with a lower rate?

The answer is yes. All Boston downtown real estate commissions are negotiable

Boston Real Estate for Sale

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Downtown Boston real estate commissions: Simply Explained!

Last week, the Department of Justice stated that commissions should be decoupled and NO fee be offered up front to buyer-agents by the seller or listing agent (though they did agree that buyer-agents can include a seller-paid commission in their buyer’s offer).

What gets lost in the discussion is the 120-year history of broker cooperation – where other agents can sell my listings, and I can sell theirs. It is a terrific system that best serves the sellers and buyers, which is our fiduciary duty.
But greed and market-share dominance is pushing fiduciary duty to the sidelines. Instead, brokerages are taking advantage of the current uncertainty to craft a quasi-single-agency package that effectively shuts out the cooperating buyer-agents under the guise of saving the seller money. Is it in the seller’s best interest to discourage the outside buyer-agents?

Boston condos for sale – Ford Realty Inc

Updated: Boston Condos for Sale Blog 2024

John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114

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Downtown Boston real estate commissions: Simply Explained!

Downtown Boston real estate commissions: Simply Explained! A Boston real estate blog reader asked me on my thoughts on whether I think Boston condo for sale agents are over paid.

I wish I can give you simple answer, but the long and short about is that it depends on the broker/agent.

Lets dive deeper into my thoughts on this question.

Boston condos for sale

Being a Boston downtown real estate agent is definitely not on anyone’s list of jobs for a regular, predictable income. That’s because we don’t earn a salary. No regular pay days, no holiday bonuses, no raises based on performance. It’s true – Boston downtown real estate agents typically make their living only from commissions, or a percentage of the price of the Boston condo sale they help their client buy or sell.

I can’t tell you how often I have read comments and articles about how real estate agents are overpaid.

First of all, I think people are asking the wrong question. People who use the services of Boston condo agents should be more concerned about paying too much for the services they are receiving. Why would you pay 5% commission for a broker who just received his license? However, a broker with 20 years experience would be worth the 5 5 commission.

The Internet is supposed to make buying and selling Boston condos for sale less expensive. I can not think of anything that has become less expensive because of the internet. The internet has eliminated some jobs but the costs of goods and services keep going up.

Boston condo sellers should be asking if they are paying too much for real estate services. In some cases, people are paying too much. Experience is the most important thing real estate agents are selling. New agents usually charge as much as experienced agents charge and people pay it.

Using the services of a real estate agent is optional. All Commissions are negotiable. Don’t hire an agent who is overpaid and don’t overpay real estate agents.

As for a Boston condo for sale agent pay, most are independent contractors who work on a 100% commission basis and only get paid after a sale closes.

My advice is to work with a real estate agent if you believe you need one. Choose an agent with experience and remember negotiate the Boston condo for sale commission.

FAQ on Boston condo for sale commission

What was the average Massachusetts real estate commission rate in 2023?

In 2023 the average commission rate was between 4 – 5%. The Boston real estate broker fee on average has been decreasing in the last few years

What is the average age of Massachusetts real estate agent in 2023?

Average age of a Massachusetts real estate broker is between mid 50’s to early 60’s in 2023. The average age of a Massachusetts rental agent is between mid 20’s to early 30’s

Does it make sense to shop around for a real estate agent with a lower rate?

The answer is yes. All Boston downtown real estate commissions are negotiable. It’s still your money, and as a Boston downtown listing broker, I am proud to offer a reasonable commission rate to my Boston condo clients.

Most of my clients selling a home or property end up paying a total of 5% commission to list their home – that’s 2.5% for myself and 2.5% for the buyer’s agent. And as a buyers’ agent, I give back portion of that fee back to YOU the buyer.

What is the average rate of a Massachusetts real estate broker fee?

In 2023 the average real estate broker rate was between 4-5% down from 6%.

Boston Condo Sellers

So what does your money buy when you enlist the services of a downtown Boston real estate agent? If you’re looking for a home or property, your buyers’ agent will help you find one that meets your needs. For those looking to sell, a sellers’ agent will list your property on the Multiple Listing Services (MLS) system. the internet and other forms of marketing.

This is where the commission based system starts to make sense. There is a lot more a buyers’ or a sellers’ agent can do for their clients, from providing information on potential neighborhoods to holding open houses to bringing buyers to your listing, and advertising your property online in such a way that achieves hundreds of thousands of views. It may seem like common practice, but really, it’s all optional. So choose wisely and ask questions to find out if your Boston downtown real estate agent will work stridently on your behalf, or simply sit back and wait for something to happen.