Is the real estate industry being stifled by “cartel” activity, happening among agents who want to maintain fat commissions and big paydays? The Consumer Federation of America (CFA), an organization that focuses on consumer rights, has found that antitrust steps need to be taken to avoid the trend of higher home prices, stifled competition, and poor service for home buyers.
As home prices have soared, so have real estate commissions. Many people are questioning the 6% fees that are charged for every home… wondering if real estate agents are working any more to receive the higher commissions? Not only has it gotten easier to sell a home because of the online tools that are available, but these 6% fees are standard – regardless of the real estate agent’s experience. So let’s review how there are antitrust efforts against the real estate cartel.
Earlier this year, a class-action lawsuit was filed, aiming at the real estate agents who are sticking with the traditional fees. This lawsuit charges that the four largest real estate brokerages in the nation, as well as the National Association of Realtors, are conspiring to charge inflated fees. The argument is that these high commissions violate the federal antitrust laws.
Several problems have arisen because of the high fees, mainly due to how buyer’s agents and seller’s agents choose to structure their fees. For example, some brokers refuse to show homes to clients who are using real estate agents that offer lower commissions. If a real estate brokerage chooses to reduce their fees, then the “cartel” steers transactions away from any agent that isn’t maintaining the traditional way of doing business in the industry. This activity is continuing the antitrust efforts against the real estate cartel.
The truth is that there is no reason why 6% should be charged in real estate commissions on every transaction! At DUFFY Realty, we’ve found that the digital advancements in the real estate industry have made it possible to cut overhead costs because less time is required to sell a home. As a result, we are reducing our commissions and passing those savings onto our clients. You can expect to save thousands of dollars when choosing our team over a traditional real estate brokerage.
We’ve definitely had some kickback in the local industry because of other real estate brokerages who don’t like to compete against our low prices. But we’ve held our ground and focused on the needs of our clients, which is why our team is thriving. Customer service is always our highest priority, and our clients love that they can save money without sacrificing the quality of real estate services offered.
If you are looking for a way to save money on your upcoming real estate transaction in Atlanta, then it’s time to talk to us at DUFFY Realty. Call to learn more about our affordable real estate fees: (678) 318-1700.