Both the Justice Depatment and the recession are putting pressure on the traditional 6% commission.
Could it be that the recession, depression, down turn - whatever it is, will have one positive effect on consumers by putting an end to the standard 6% commission charged by agents? A couple articles we saw recently got us thinking this could be the start of a steep price cut in transaction costs for most sellers.
First over at Inman News, a leading real estate news publisher we saw the following story:
6 Percent is Dead
"My belief and statement is that the "standardization" and commonality of the 6 percent commission in the industry is dead and 2009 will be the year in which we will see major movement to innovative fee-based business structures."
- Inman News
Then we saw that the US Department of Justice sued a South Carolina MLS board for trying to limit consumers access to the MLS as being Anti-competitive and against consumer interests.
What does this all mean?
The MLS boards, which are run by traditional full service brokers, are starting to get worried that innovative services are under cutting their commissions and they are doing everything they can to block them. Happily the DOJ has come to consumers defence taking action against these boards and protecting the rights of consumers " Save thousands in commission fees" ...
The more consumers understand their rights and their ability to market their own homes as effectively as selling agents there will continue to be strong pressure on commission rates and the winners? Everyday homeowners.
Now that is real news in this market.