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Updated 7 months ago on . Most recent reply
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The new NAR rules have actually made buyer agent commissions go up not down
Here in Chicago commission have typically been between 2 and 2.5 percent of gross sale price but now with the new rules I have not met any agents willing to take less then 2.5% so what has happened is the listings that provide 2% are now increased either by seller or buyer to our minimum of 2.5%. I have not had any buyers or sellers put up an argument with this or try to buy without a buyer agent. I don't make my clients sign long term contract either just per a property saying will pay me the difference if we don't get at least 2.5% and everyone been cool with it. Some background my team has sold around 55 million now of 2-4 units in Chicago so we are the experts in the niche, maybe new agents will have a harder time now but definitely is not hurting experienced agents.
Most Popular Reply
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I gave an interview to Axios last December where I predicted that average commission rates were likely to go higher due to due to the likely outcome of the class action suit.
Sure enough, a settlement was announced months later, and sure enough average commissions rates have been inching higher, and will continue to do so.
It is simple supply and demand. The settlement was likely to...and ended up leading to a shrinking labor pool for brokerage services. As the supply of labor shrinks, demand becomes higher, and average costs rise.
- Russell Brazil
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