Why is real estate still at 6 percent?

Question

if the real estate market is not doing well, why is the agents still charging 6 percent? Here in hampton roads Virginia in Virginia Beach?

Answer 1

The amount of commission charged is negotiable, so you may find an agent who will charge less, but you may regret hiring someone in any profession just because they're the cheapest.

Also keep in mind, the 6 percent is less money in a market with decreased values.   It also takes a great deal more work and marketing to sell a home in a buyers market with a high number of bank owned and short sale properties also on the market.

If you are buying another home, you may try to find a quality agent who will reduce the commission slightly if you're also using them as a buyers agent for the new property.

Answer 2

They have to work twice as hard, twice as long, and spend a great deal more on advertising, a great deal more on gas to show prospects to more properties, etc.  And they are getting a much smaller commission since housing prices are down.  In short, they have the same increasing costs and decreasing income so many of the rest of us face.

Answer 3

The cost of living and business expenses have stayed the same or increased.

Have you asked for a decrease in pay since the economy is running down?    How much of a decrease do you think you should sacrifice for the good of your clients/customers?