Categorized | Residential

Real Estate Agents Earning Increased Commissions on Home Sales

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With the continued struggles of the housing market, many real estate agents are receiving increased commission on each sale. The commission increases are due to a number of different factors, though most apparent is the difficulty that they face in actually selling a property in today’s market.

The average commission received in the past year is up half a percentage point from 2005, which was near the end of the housing boom in the United States. Even with foreclosures and declining home values, sellers are now graciously paying the full real estate commission amount. It is generally understood that the process of selling a home in today’s market is exceedingly difficult due to the vast amount of supply versus the demand.

While agents rarely received the full six percent commission during the housing boom, the difficulties that they face in the market now are definitely playing a role in the increased commission numbers.

Although commissions are increasing, it should be noted that real estate agents definitely are not living the lavish life at this point in time. In many areas of the country, homeowners owe more on their property than its actual value. These homeowners would have to pay the real estate agent’s commission out of pocket. Thus, instead of opting to sell their home, these homeowners fall into foreclosure or complete short sales. In those cases, they usually sell the properties for less than they owe. However, they are not required to pay any kind of commission due to the circumstances of the situation.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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