Every real estate agent (their broker) evaluates what they require to provide services connected to listing a property for sale. As with anything else, if you require goods or services you must pay a fair cost for them. Real estate agents are just like doctors, lawyers, bakers etc. They determine what their value is and ask that you compensate them for that value.
Some agents may have decided that they require X% or X$ for each property they help to sell. In that sense they are free to set a “fixed” rate and communicate that rate to all of their clients. At the same time, they have the ability to negotiate if they feel the effort to sell your house justifies a rate lower than they have communicated at the start of the discussion.
It’s important to note, real estate agents and brokers can not and do not collude to fix prices. Some people believe that a commission of X% is standard and they would be wrong to believe that. If two agents are charging the same amount it’s probably because two gas stations located adjacent to each other charge the same price. A result of competition.
Yes, real estate agents in the United States must have buyers they represent sign a contract for representation. The contract does not require you buy a house. It does require you to use the agent you have chosen to represent you for the time period listed in the agreement. Also, the agreement may require you to compensate your real estate agent for your efforts at closing.
These actions are the result of a settlement which was brought against the real estate industry and supported by the U.S. Justice Department. Your agent will provide you with more information on this after August 17, 2024
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