The Rising Cost of Realtor Commissions in the US: Experts Analyze the Soaring Expenses of Buying Real Estate
Americans pay about twice as much commission to real estate agents compared to other countries due to the controversial 'bundled' commission system. Under this system, buyer's and seller's agents are paid equal commission, usually between 5 and 6 percent, which is paid for by the seller. This system incentivizes agents to keep fees high and has led to a higher percentage of home buyers being represented by an agent in the US compared to countries where buyer's agents are less common. Recent lawsuits have brought attention to the issue, and it is predicted that the system may change, with buyers potentially paying agents directly, leading to a decline in the use of buyer's agents.