Mortgages

Hidden Real Estate Commissions: Consumer Costs and Improved Transparency

By: Stephen Brobeck, Senior Fellow

CFA released a report on hidden real estate commissions, which found that traditional real estate agents and brokers make it difficult for consumers to learn about commission levels.  This concealment helps explain why a large majority of consumers surveyed do not know that these levels are five to six percent of the sale price of a property.

The report was based on:

  • Study of all 263 agent and broker websites (listed by Google) in four cities.
  • Conversations with 200 agents in 20 cities.
  • A national survey of over 2,000 representative Americans.
  • Review of published research on the subject.