DOJ Rejects Settlement and Screws Over Realtors and Their Commission When the government gets involved with things they don't understand we are the ones that get hurt. In a landscape where the traditional structures of the real estate industry are being rigorously questioned, a pivotal development has emerged from the U.S. Department of Justice (DOJ). This development centers on the longstanding practice of fixed and shared commissions between real estate agents, a practice that has been a cornerstone of the industry's operation. The DOJ's rejection of a court settlement marks a turning point, emphasizing a clear message: the necessity of reforming how agent commissions are determined and distributed. The DOJ's Standpoint on Agent Commissions The Department of Justice has cast a critical eye on the... Read more
Category: Standard Commissions
Real Estate Commission: Understanding Its Flexibility
No Standard Commission in Real Estate
The concept of a ‘standard’ commission in real estate is a common misconception. In reality, real estate commissions are not fixed by law or industry standards. This section will explore how commission rates vary and the factors that influence these variations.
Commission is Always Negotiable
One of the key aspects of real estate transactions is the negotiability of the commission. This flexibility allows for discussions and agreements that can suit both real estate agents and their clients. This section discusses how negotiation can play a pivotal role in determining commission rates.
Factors Influencing Commission Rates
Several factors influence the negotiation of commission rates in real estate. These include market conditions, property type, and the level of services provided by the agent. This section delves into these factors and how they impact the negotiation process.
Tips for Negotiating Real Estate Commissions
Negotiating real estate commissions requires skill and understanding of the market. This section provides valuable tips for both agents and clients on how to approach commission negotiations, ensuring a fair and satisfactory agreement for both parties.