Should Real Estate Agents Receive a Standardized Payment for Home Sales?

Real Estate Transactions
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The inaccessibility of housing affects two generations for several reasons. A significant factor may be the substantial commission real estate agents receive from home sales. For instance, I observe properties purchased in 2021 for $750,000 now listed for $850,000. Sellers are often just trying to break even, whether due to rising mortgage rates or personal circumstances that compel them to sell. This cycle of increased prices takes away leverage from buyers.

I believe the federal government should intervene and establish a standardized fee for home sales. It’s disheartening to see agents profiting immensely, flaunting luxury cars and designer clothes as business expenses. Federal regulations should have addressed this issue long ago. Implementing such a policy would benefit buyers and sellers alike while primarily affecting agents who earn far more than their contributions warrant.

Edit: After considering feedback, perhaps a flat fee isn’t the best solution, but I propose that agents should adopt an hourly compensation model, similar to other professions in Canada. Realtors, please don’t take this negatively—I value your contributions, but the current fee structure seems outdated. If guaranteed annual income were offered, wouldn’t that alleviate concerns regarding market fluctuations?

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From my experience in the housing market, I think introducing a model that offers flexibility might be beneficial. Instead of a strict standardized fee, exploring a base fee with performance bonuses could align better with the market’s demands. This system would encourage agents to still perform well, as it ties part of their income to customer satisfaction and results, while providing some security with a guaranteed base income. It’s a compromise that addresses concerns over fairness and sustainability without entirely overhauling the current system.