Hefty real estate commissions in the United States, estimated at around $100 billion annually, and compares them unfavorably to much lower rates in other countries. Economists Borys Grochulski and Zhu Wang propose an "à la carte" compensation model for buy-side agents, wherein buyers and sellers pay their agents separately, and buyers pay for specific services rendered rather than a fixed commission. This model, they argue, could potentially save U.S. homebuyers over $30 billion annually and align agent compensation with costs. Despite challenges, including ongoing lawsuits against industry players, the economists advocate for this shift as beneficial for the overall economy. In todays stream we will discuss the pros and cons of this new proposed way of real estate commissions could be negotiated in the future.

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