URBALO

During the housing boom, home sellers were in the driver’s seat with real estate agents circling around their property and they were offered very low commission rates. These times seem to be old gone and the roles have changed a bit.

According to Steve Murray of Real Trend, the average commission rate in 1991 was 6.1%. Ten years later, the average dropped to 5.4 and starting in 2005, the 5% rate was common among realtors. Everyone expected the rate to go even lower but when the housing bubble has burst, many houses found themselves sitting on the market for long periods of time. Therefore, the average commission in 2006 has increased to 5.18% .

According to recent surveys, many home owners believe they can sell their homes quicker by hiring the best real estate agents but those sales people come with a premium. I

n this case, the added percentage might actually help the realtors in the short run and even if the sales volume has dropped, their income might be steady.