The Real Deal New York

Upfront costs rise for agents

May 08, 2007 12:00AM

From the May issue: Residential real estate companies, claiming that it’s harder than ever to eke out a profit, are increasingly hitting their own agents with additional fees and expenses. The most dramatic move recently was the Corcoran Group’s introduction of a $1,500 annual marketing fee, to come out of each agent’s commission. Corcoran also decreased agent commissions by raising the threshold for higher splits to $160,000 in gross commissions, up from $140,000 previously. Similarly, Bond New York is planning to raise the bar on commission splits this year, which means less money in agents’ pockets. Increasing fees and expenses add to the challenges a real estate agent faces in a competitive market and effectively siphon off some of the commission earned on deals. more By Lauren Elkies

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