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Ever think about how much Americans pay each year in real estate commissions? How about $63 billion dollars annually! The average commission rate a realtor takes is 5%, which for a $250,000 home equates to $12,500. More and more Americans are turning to Discount Brokers. Discount Brokers normally charge a much lower rate and flat fees to those willing to do some of the footwork.

Companies like Assist2Sell, HelpUSell, RealEstate.com, and ZipRealty pass along savings to you when buyers and sellers willing to use the internet and do some legwork. In the early years of discount brokers, many traditional agents refused to show their houses and refused to work with the discount brokers.

In September 2005, the Justice Department filed suit against the National Assoication of Realtors (NAR), claiming that one of it’s rules unfairly prevents discount brokers from displaying the same information online as the full-service brokers provide in their offices.

Many states have put laws in place that state brokers must provide a certain level of service to be licensed to sell real estate.

These bidding wars between discount brokers and traditional real estate agents will likely affect the way home buyers and sellers approach and negotiate commission rates in the coming years. Those that educate themselves will likely save thousands of dollars in commissions if they are willing to take a more active role in the sale of their home.

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