More home sellers paying full real estate commissions

Someone selling a home is more likely to pay a full real estate commission today than during the housing boom, when discounts ruled and most properties sold quickly.
Commissions have steadily increased in recent years, despite a rash of foreclosures and falling home values that have left sellers with little spare cash to pay a broker.
The average commission nationally at year-end 2010 was (higher than) 2005, according to Real Trends, a publishing and consulting company based in Castle Rock, Colo.
In the housing frenzy of 2000 to 2005, sellers often questioned the value of agents. The number of brokers ballooned, and the competition for listings led some agents to cut commissions.
But when the housing market soured beginning in 2006, agents couldn’t leave the profession fast enough, and it became much harder to sell homes. Sellers have since grown more appreciative of what they do.
Agents now have to spend more time and money marketing the properties, and their jobs aren’t limited to finding buyers and securing contracts.
Agents also have to help arrange financing and title insurance to keep the sales moving toward the closing table.
Of course, there is a twist.
Banks tend to hold down commissions on short sales and foreclosures to minimize their losses, but some lenders are paying the full (amount) so that the agents will actively market the homes.
If you’re looking for to buy or sell a home, please call me at 239-672-2599.

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