Noah Bukhayar | Bloomberg
The hot US housing market is poised to be an outstanding year for real estate agents.
Fee income – the cut that brokers collect to help buy and sell homes – will grow 16% in 2021, topping $ 100 billion for the first time, according to a new analysis by Knock, a real estate technology company that lends money to clients. buy a new house by helping them sell the old one.
The increase occurs despite a slight decrease in the rate that agents charge customers. According to Knock, the average commission rate will be 4.94% in 2021 – 20 basis points lower than two decades ago.
Estate agents remain the dominant mode of buying and selling homes in the United States, even as companies promising to streamline the process with technology are growing rapidly. As home prices skyrocket in the United States, this has led to a sharp increase in the income of real estate brokers, who usually receive a cut from every transaction.
While the increase in commissions is a boon to agents, it draws attention to the revenue model that has garnered close attention. Earlier this month, the US Department of Justice pulled out of the Trump administration’s antitrust deal with the National Association of Realtors, saying it intends to investigate the organization further.