Realtor Commissions on the Rise
As the market changes and home sellers can no longer just throw a sign in their yard to sell a home we are seeing commissions paid to Realtors on the increase. There has been an increase in the number of homes on the market in the last 18 months. The time homes spend on the market has actually tripled this year. In today's market when it takes an experienced Realtor using a marketing plan to sell a home, sellers are more willing to pay a Realtor top dollar to get that done. We are seeing commissions in the range of 5 ½ to 7% and some are even offering bonuses of $5,000 to $10,000 to the buyer's agent.
With the change in the market Realtors are required to spend more time and invest increased hours in selling a home. This in turn leads to the need for higher fees to pay for those hours. The cost of marketing a property has also increased. Properties no longer sell in 2-3 weeks, so the properties require months of advertising in order to sell a home. Long-term advertising costs are rising. Sellers no longer want their home just advertised in the paper. Now they want the newspaper, as well as internet, fliers, mailers, etc.
So, next time you wonder why Realtors are charging more under stand just like everything else it is requiring more to do more.
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