Dispelling Myths About Real Estate Commissions and the MLS
“There are many assertions being made about the homebuying process in the wake of the draft settlement agreement. For instance, some assert that real estate agents “steer” buyers away from properties with low offers of buyer-agent compensation and that high commissions drive up home prices. Bright MLS researchers conducted an analysis of more than one million home sales transactions that took place in the Bright MLS service area1 to analyze some of the claims about the residential real estate industry. We ultimately found many statements being made in the media and by others are simply not supported by market data.”
Lisa Sturtevant, PhD, Chief Economist, Bright MLS
Blown away by the analysis here and can’t pretend to understand the math behind the research. It’s amazing how, based on this data, the DOJ narrative on steering and price are pretty laughable. From the report on regarding commissions and home prices:
“The correlation between compensation percent and list price is negative, indicating that higher offers of buyer compensation are actually associated with lower list prices for similar homes.”
Lisa Sturtevant, PhD, Chief Economist, Bright MLS
🎤 ⬇️ Great job Bright MLS.
I would assert that lower list prices (or rather ‘correct pricing’) correlates typically to talented agents who also command higher total commission rates and no how to negotiate them. Agents who cut commissions lower also tend to over price
whoops! ‘know how’ 🙂