The Real Deal Miami

Commission percentages continue upward

February 16, 2010 12:38AM

Commission percentages continued to inch upward nationwide for the
fourth consecutive year to 5.29 percent in 2009 from 5.26 percent in 2008, according to RealTrends’ annual survey of
the 500 largest brokerages, through November. In a tougher market,
brokers want to be paid more for working harder, RealTrends reported, and to offset the increased costs for
advertising and other fees as homes linger on the market. Meanwhile, the total value
of commissions dropped to the lowest in seven years to $40.6 billion in 2009,
a 6.2 percent drop from 2008, the data show. The foreclosure crisis and the first-time
homebuyer tax credit have impacted the bottom line, said Steve Murray,
president of RealTrends, in part because the more modest-priced first-time homebuyer purchase generates smaller commissions.