Recently, most commissions have fallen significantly as the Internet reduces the role of agents. This includes stock brokerage commissions , airline tickets, insurance, shopping and many more.
However, the single biggest commission most consumers may ever pay - the one for selling their home has only fallen modestly from the traditional 6%. That is largely because selling houses is much more complicated than selling stocks or airline tickets.
A number of alternatives to traditional real-estate brokers are starting to show up in some markets.
Some offer commissions as low as about 3 percent, while others offer rebates that can total thousands of dollars. Still others offer fixed prices for listing homes on their Web site starting as low as $9.99 (Note: http://www.YourSaleByOwner.com/ was offering these rates on the date of this publication).
Listed below are the alternative options to using traditionla real estate agents for home buyers and sellers.
SERVICE TYPE: Traditional SERVICE OFFERED: The Seller pays a pre-negotiated commission(typically 5 percent to 6 percent of the sale price). The commission is divided between the buyer's and the seller's agents. COMPANIES: RE/MAX , Weichert
SERVICE TYPE: Discounted Commissions SERVICE OFFERED: The Seller pays a pre-negotiated commission typically 1 to 2 percent to both the buyer's and the seller's agents. COMPANIES: Foxtons
SERVICE TYPE: Rebates SERVICE OFFERED: Cash or gift cards for using a participating agent. Agents share part of their commission with the buyer or seller. COMPANIES: http://www.RealEstate.com/
SERVICE TYPE: For Sale by Owner SERVICE OFFERED: Typically a web based offering with a flat fees starting for as low as $9.99. The services include listing homes on websites & search engines. COMPANIES: http://www.YourSaleByOwner.com/
Senior Partner - YourSaleByOwner.com