The 100-years-war over real estate commissions
April 28, 2021
In 2002, Natalya Delcoure and Norman Miller, two real estate economists, set about to learn what fees consumers pay real estate agents in America. They were especially interested in real estate commissions.
What Decloure and Miller discovered was somewhat shocking. On average 6% of the proceeds from each home sale went to the participating real estate agents. The figure was not just more than what agents make in other countries but wildly more; 200% to 400% more.
The economists figured this startling disparity couldn’t last in the digital age, but it has.