Does it really matter whether a reduction in realtor commissions increases or decreases selling price? Most people are both buyers and sellers, if not at the same time then at different times. If you pay more on one side, you'll save money on the other.Should we think a property is 2.5% more valuable because the buyer now has to pay the commission separately instead of having it priced into the list price?
Not clear yet if this will reduce the overall commission structure, but it appears like the Seller will not get hit with the 2.5% to the Buyer's Agent anymore.
The logical answer would be no, but the market is part logic and there's some emotion that will determine the sales price a seller and buyer agree to.
What matters is the total amount of transaction costs. Reduce that amount, and both buyer and seller will benefit. Same as in stock/bond investing. Increased brokerage commissions only benefit the brokerage, not the buyer and/or seller.
Statistics: Posted by evancox10 — Thu Aug 01, 2024 3:19 pm — Replies 11 — Views 1082