BROKER BUCKS

While it’s still very early and the existing housing market is profoundly weak, preliminary evidence shows real estate agent commissions declining since new rules went into effect in mid-August following a landmark legal settlement. From mid-August through early October, average commissions received by buyer agents were 2.28% compared to 2.65% over the prior year. Interestingly, seller agent commissions also declined, going from 2.98% to 2.69%. These declines follow economic theory.