National Association of Realtors (NAR)

National Association of Realtors:The Truth about Commissions

The National Association of Realtors (NAR) in conjunction with the Swanepoel/T3 Group authored the DANGER Report (2015) that identifies multiple threats that will impact the real estate industry. The report reveals the thinking of 70 industry leaders and over 7,500 brokers and agents from across the country. The following is an excerpt from the report that highlights a significant threat to commissioned real estate agents and a great opportunity for home sellers and buyers.

A2- Commissions Spiral Downwards

A variety of powerful forces will exert significant downward pressure on real estate commissions.

Scale 1 – 5     (1= 10% chance, 5= 100% chance)

Probability:  5.0%

Timing:         3.5%

Impact:         5.0%

Index:            87.5  out of 100  (Critical concern for the Real Estate Industry)

“Home buyers might not always want to use a

real estate agent, but most think they have to.

What happens if their perspective changes?” 


Consumers are definitely becoming more motivated to find an alternate solution, and a growing new generation of brokers and agents are exploring a legion of new business models and pricing models that will most likely become commonplace……….


The continued rise in home prices has facilitated the elevation of real estate earnings based on commissions.Those earnings have not gone unnoticed by consumers, who are responding by placing increased pressure on real estate agents to reduce their commission rates. As a result, many fear a gradual downward slide or a realignment of fees as charged in other countries in the world.


According to a report by the International Real Estate Review, real estate brokerage fees around the world are:

United Kingdom…………….. 1 – 2%
Singapore………………………. 1.5 – 2%
Netherlands…………………… 1.5 – 2%

Australia……………………….. 2 – 3%
Belgium………………………… 3%
Germany………………………. 3-6%

and in the United States          5-6%

Real estate home sellers and buyers are saving thousands of dollars by paying direct or not paying a % commission to a real estate agent. Fixed fee compensation or alternative models are consumer preferred. Save money don’t pay a real estate commission.

Read the full report online at

Is paying a real estate commission really necessary?

Serendipitously the influence of Zillow may also help to reduce the transaction costs for both the home seller and buyer. Is paying a real estate commission really necessary? NO! But many real estate professionals feverishly protect the commission model suggesting it is in the only way to ensure sellers and buyers receive quality information and service. You can bet Zillow is delivering timely quality information and that there are real estate agents that deliver full service and do not charge a commission, but rather a fixed fee.

Zillow has cracked the dominance of real estate agents and brokers over the home buyer and seller. By devolving information and making home listing public facing Zillow has stripped real estate agents of a treasured commodity- the control of home listings. More importantly, Zillow does not operate like a Multiple Listing Service (MLS) – the real estate broker’s network. Zillow does not highlight the commission, also called the co/broke, a listing broker will pay a buyer agent. Often times a buyer agent using the MLS, will not show a home buyer a respected property if that listing does not offer a satisfactory commission to the buyer agent. Therefore the buyer agent under the MLS system is the gatekeeper of information. The buyer agent will serve his/her self-interest to make more money, rather than serving the needs of their client- the home buyer.

This point is confirmed by Inman News in a 2015 Special Report- “Why Real Estate Agents Don’t Compete on Commission Rates.” When asked what’s stopping the agent from charging a fixed fee or offering less in commission?  The majority of respondents agreed that philosophically agents and brokers are opposed to commission discounts. Most noticeably because that means brokers/agents would make less money. More poignant is that agent and brokers said they fear if they represent a seller at a reduced commission, other brokers might not promote their listings to their buyers. This type of behavior is called steering and is in violation of laws that protect consumers and enforce competitive markets. A competitive real estate market based on reducing transaction costs is good for home sellers and buyers.

Fortuitously Zillow and the internet have leveled the playing field and empowered home seller and buyers. It is NOW up to home sellers and buyers to exercise this power and say, “NO to Paying a Real Estate Commissions”.

Save MONEY. Only list a home with a FIXED FEE Realtor.


Filtering Down Local Real Estate…. The Northeast to Chelmsford, MA 01824

Real estate statistics are interesting and make good conversation in the board room or at a cocktail party. For example, what are the most recent existing home sales activity in the northeast telling us? According to the National Association of Realtors existing homes sales through March, 2015 have increased 6.9% to an annual rate of of 620,000 units. Also, the median price of a home is now $240,500.

KCM NAR Exisitng Sales Report March-page0001

But don’t you really want to know what’s happening in your own backyard?

The below table shows you what is happening in Chelmsford, MA; Westford, MA; Concord, MA and Carlisle, MA. It’s data like this that analysts use to spin stories that we all read and talk about.

But more importantly what are your thoughts? What are these numbers saying to you.

March YoY MLS report-page-0

If you are thinking of selling your home this Spring, NOW is the time to contact your local real estate broker. Be the first to market and capitalize on low inventory. If you want to put even more money in your pocket LIST your home with a FULL SERVICE, FIXED FEE real estate broker. Don’t needlessly give your hard earned home equity away.

Simple Supply and Demand: Real Estate Inventories are Down, Real Estate Prices are up.

The National Association of Realtors reported yesterday February’s existing home sales increased modestly.

Home prices are up 7.5% YoY. Days on Market is down. Homes are selling faster and for more money. As expected the Northeast existing home sale numbers were blanched due to extreme weather conditions. However home sales still recorded a 3.6 percent rise compared to one year ago and the median sales price of $241,800 is 3.3 percent above a year ago.

If you are thinking of selling your home this Spring, NOW is the time to contact your local real estate broker. Be the first to market and capitalize on low inventory. If you want to put even more money in your pocket LIST your home with a FULL SERVICE, FIXED FEE real estate broker. Don’t needlessly give your hard earned home equity away.

3.24.15- NAR Feb Exisitng Home Sales Report Infographic-page0001

Your  Choice Your Way


NAR reports January 2015 Existing Home Sales

January is always a tough month for real estate sales and this year is really no different.

But how bad is it? Are we worse off than last January 2014?

According to the National Association of Realtors (NAR) the real estate market is off to a slow start but only if you look at month to month numbers. Overall the market is chugging along year over year. What the market needs now is more inventory. Inventory is down (-1.58%), mainly due to weather considerations.

“Although sales cooled in January, home prices continued solid year-over-year growth”, says Larry Yun, the NAR chief economists, “the labor market and economy are markedly improved to a year ago, which supports stronger buyer demand.”

If you are thinking of selling your home, NOW is the time. Contact a Fix Fee, Full Service real estate professional today.

See below NAR chart: SUPPLY is down, and both DEMAND and PRICES are UP.

Housing Market Statistics NAR Jan 15 3.2.15-page0001


Zillow and Trulia- A Real Estate Professional Tool?

The merger of Zillow and Trulia will not have an immediate consequence to the consumer but it means a great deal to a real estate professional. Both Zillow & the Trulia website spend  tremendous amounts of money to purchase buyer eyeballs (traffic). Zillow is an excellent example of how to work the internet. The company is revered for its creativity and ingenuity.

Initially it was a tease with Zestimates that tantalized buyers to regularly visit the Zillow website. Once Zillow had the eyeball concentration (traffic) they flipped the switch and introduced a dynamic revenue model. Zillow invited all real estate professionals to their party platform to meet home buyers. For this privilege the real estate professional is willing to pay a small advertising fee for VIP treatment. Now every buyer knows where to find homes on the internet and every real estate professional knows where to find buyers on the internet- at Zillow.

It is absolutely brilliant.


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