She further outlined what might occur should a percentage limit be placed on commission-sharing: “If the commission is relegated to a maximum 4%, for instance, the industry will lose realtors and we’d see commission plus broker fee plus promoting costs within the agreements. However, the Realtors that remain will make it work.”
Yet the thorny issue of remuneration stays: “There is a matter of fair compensation.,” Ray said. “Who decides? In the mortgage industry, we’ve a maximum that we are able to make, whether we prefer it or not. We even have costs related to each transaction. Why is real estate any different? Many RE shops have a set fee that sales associates pay giving the vast majority of the commission to the agents. You will likely see more real estate agents stepping into that direction.”
The commission-sharing system advantages sellers and buyers understand the fee, Cunningham suggested: “Sellers proceed to opt into the commission-sharing system as they feel it’s the very best technique to accomplish their goals, sell their homes quickly, and trust that the transaction can be handled by professionals,” he said.
“The concept that this technique is causing the rise in home prices isn’t necessarily true as the value is set by buyers’ willingness to pay what the market demands, and buyers have continued to see the worth of home ownership and have paid market price.”
Let the market resolve, he reiterated: “Prices is not going to drop until buyers now not see the worth in buying homes at a given price,” he said. “This is beginning to occur with mortgage rates of interest within the 7s already. The market will sort itself out. That is how a free market works – supply and demand.”
