The new standard What I have noticed on MLS regarding Boston real estate commission’s is 6% that a number of agents have 4% commissions.
Will commission pay fade away?
The following are some excerpts from Forbes:
Technology has exploded in the real estate industry, bringing with it the promise of greater efficiencies and lower costs. We’re seeing innovation with companies built to sell homes without showings, listings or agents — showing how quickly homebuyers can buy and sell their homes. An exciting variety of new technologies have come online to improve the interaction of the buyer search process and the agent
Many real estate practices clung to by brokerages were antiquated even before Covid-19. Fancy office space is totally unnecessary in most markets. Social media, podcasts, webinars and online platforms have made traditional brokerage marketing attempts to drive their own brand through print ads …
I agree with the above statement, just recently I moved my Beacon Hill real estate office from high rent storefront to the rear of the same building because walk-ins became less relevant. More and more of my Beacon Hill condo buyers and apartment renters were online, not walking into real estate offices like years back
The bottom line is Americans shouldn’t pay the highest commissions in the world, but the hard work of real estate agents shouldn’t be devalued to solve this. The answer lies in brokerages evolving and making their own businesses more efficient in order to charge better splits, or better yet a flat fee per transaction, thus allowing agents to bring these savings back to consumers. The support provided by the brokerage for a $1 million listing versus a $400,000 one is likely similar, yet the commission splits model ensures the brokerage pockets substantially more for an expensive listing.
It will only be a matter of time that the market place will change the structure of Boston condo sales fees.