Should realtors cut their commissions?

Homeowners in British Columbia nearly always use a realtor when buying or selling a property, according to a new report by Survey Sampling International,

Over the past four years 86.3 per cent of transactions have involved a real estate agent.

With high home prices, commissions on sales have increased too and some are calling for a readjustment of those fees.

Writing in the Vancouver Sun, columnist Barbara Yaffe asks whether the typical fees of seven per cent for the first $100,000 of a home’s price and 2.5 per cent of the rest should be lower.

Citing readers who have complained of the cost involved and that they often do some of the groundwork themselves using online resources, Yaffe notes that while realtors have been calling for a reduction in property tax percentages due to higher prices, they are not talking about reducing their own fees.

Of course, it could be argued that the nature of the property business is that realtors (along with sellers) do better when the market is good but equally have to take a hit when there’s a slump!

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