Why are real estate commissions so high?

Real estate agents work diligently with client to procure a successful transaction.  If they are a general real estate agent that means that they work under someone’s brokerage that also has to be compensated for the work of the agent.  Most people do not take into consideration the amount of work that goes into creating successful transactions for buyers, sellers and renters.  If there is a 6% commission due upon the sale of your property and let’s say your agent listed your home and another agent presented a qualified buyer, that 6% now becomes 3% to your agent and his or her broker and 3% to the selling agent and his or her broker.  The percentages can vary depending on the co-op percentage offered.  So in essence, your agent is not keeping the entire commission to him or herself.  Real estate agents put a lot of time and effort into managing transactions varying from advertising, creating fliers and other marketing techniques, host open houses, driving clients around to preview properties, online advertising, and more.  Most of the time, these services are provided for you, the client, at no additional out of pocket expense and commissions are used to offset some of the costs agents incur to create a successful transaction for you.  It is completely understood that some clients find the commission amounts to be high but when they take into consideration all that goes into their real estate transaction, they will see that real estate agents work just as hard as other professionals and deserve to be compensated for their hard work and dedication.  For the record, there are not set limitations as to what percentage your agent can charge or request to list your home for sale and it is always best to research the real estate laws that govern your State to ensure that fair practices are being upheld. Remember, your agent works for you and is just as excited about providing the best possible service for you as you are about receiving the best possible service.