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The real estate industry is undergoing a significant transformation, with one of the most notable changes being a shift in the way real estate commissions are structured and paid. Traditionally, real estate agents have earned a commission based on a percentage of the sale price of a property. However, in recent years, there has been a growing movement towards alternative commission structures that aim to make the real estate transaction process more transparent and cost-effective for both buyers and sellers. Critics of the traditional commission model argue that it can be costly for homeowners, especially in high-priced markets, where a 5% to 6% commission can amount to tens of thousands of dollars. This has led to calls for greater transparency and flexibility in the way real estate commissions are calculated and paid. David Lykken sat down with Marjorie Adam to discuss where this change is heading.
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The real estate industry is undergoing a significant transformation, with one of the most notable changes being a shift in the way real estate commissions are structured and paid. Traditionally, real estate agents have earned a commission based on a percentage of the sale price of a property. However, in recent years, there has been a growing movement towards alternative commission structures that aim to make the real estate transaction process more transparent and cost-effective for both buyers and sellers. Critics of the traditional commission model argue that it can be costly for homeowners, especially in high-priced markets, where a 5% to 6% commission can amount to tens of thousands of dollars. This has led to calls for greater transparency and flexibility in the way real estate commissions are calculated and paid. David Lykken sat down with Marjorie Adam to discuss where this change is heading.
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