Real Estate Agent Commissions: Why They Aren’t Discussed, and the Sherman Antitrust Act

Craig is the founder and Managing Broker of Added Equity Real Estate.  Added Equity charges a 1% fee to list and sell a home, total. Not 1% plus another 3%. Added Equity is different than any other firm. This is Craig’s blog series exploring why and how most realtors don’t talk openly and frankly about the actual fees they charge, keeping real estate agent commissions at their longstanding level.

First Installment: Real estate agents – intentionally or not – hide behind the law to avoid revealing their commissions.

Real Estate Broker Commissions Kept High with Secrecy

It goes without saying that real estate brokers benefit by high commissions. It also need not be said that those commissions will go down only when the prices are effectively communicated to consumers so that they can make informed decisions. By keeping commissions secret, real estate agents can keep them artificially high. How will consumers know of a better deal? They won’t. As a result, real estate agents have a strong personal incentive to “go along” with the system, charge the same high commission as anyone else, and keep it all from the public’s view.

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