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The Big Story

Is the real estate industry about to fundamentally shift?

May 27, 2024
The podcast discusses the changing landscape of real estate due to the internet, focusing on the impact of agent commissions. It explores lawsuits in the US and Canada that could lead to more transparency. The conversation sheds light on negotiation tactics for commissions and the potential for shifts in the industry towards more transparency and technological advancements.
24:36

Podcast summary created with Snipd AI

Quick takeaways

  • Real estate commissions are negotiable but lack transparency, leading to buyers' limited control in rewarding agents.
  • Legal actions aim to enhance transparency in commission structures, empowering buyers to negotiate fees based on services received.

Deep dives

Transparency in Real Estate Commissions

The real estate industry relies heavily on commissions, usually around 5%, negotiated between the seller and the real estate agent, encompassing fees for both buyer and seller agents. However, most first-time home buyers lack awareness that these commissions are negotiable. While experienced buyers can leverage negotiations for additional services based on the commission percentage, newcomers often end up agreeing to the suggested 5% without questioning or understanding the flexibility in these fees.

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