Real Estate Brokerage

The Relationship of Residential Real Estate Commission Rates to Industry Structure and Culture

A new report by the CFA on residential real estate commissions shows that buyer agent commissions are highly uniform.  This rate uniformity is strongly supported by the industry’s compensation system in which home sellers pay the commissions of both the listing agent and the buyer agent.  Uncoupling (or untying) seller and buyer agent compensation would spur price competition that would substantially reduce the some $100 billion in commissions paid annually by consumers.