Let’s Get Real about Price Fixing in Real Estate. There is this misguided myth that our industry price fixes commissions, and nothing could be farther from the truth. In my 22 years in this business, I have never, ever had anyone tell me how I should structure a real estate commission.
You’ll find a ton of click-bait headlines out there today proclaiming that a recent REALTOR class-action lawsuit settlement aims to drastically cut commissions in the real estate industry, but if the market really demanded lower commissions it doesn’t need a class-action lawsuit to enable that. The American real estate agent marketplace is one of the most competitive and creative industries in the world, and no one is out here telling practitioners or consumers that commissions are fixed.
In fact, on every California listing contract it’s put in bold lettering to advise sellers that commissions are not fixed. And if a market disrupter wanted to come in and offer lower commissions to consumers, which they do constantly, they are certainly at liberty to do so.
No one is going to convince me that 2 million realtors are acting as a unified cartel who is fixing commissions, and you shouldn’t let anyone convince you too. Home buyers and sellers have been able to and will continue to be able to negotiate commissions with their selected REALTORs at will.
Matt Sundermier's Memos on Real Estate & on Life 