London broker commission rates so much lower?

JR1..yes it is very frustrating to both buyers and sellers however just like anything else in a capitalistic economy new business models emerge. FSBO Brokers are gaining momentum.

http://www.hauseit.com/why-new-york-city-real-estate-commissions-high/

http://www.hauseit.com/fsbo-nyc/

I am amazed it is still so high, just silly that the mkt place has not forced it lower.. Probably regulated sadly..

There are alternatives. We have been at it since 2008. Steve is right, it's about competition which is a good thing for everyone and it assists with the creation of a more dynamic market place. Capitalism is alive and well in NYC real estate. No one wants one size fits all in anything. Who would complain about choices; E-trade, Costco, Amazon, Blue Nile, Expedia and on and on. And it is not just about cutting prices it is about maintaining an outstanding level of service. No always so easy to do. This doesn't mean Tiffany's goes under, they also have to become better at what they do to compete.

Keith Burkhardt
The Burkhardt Group

I saw that article the other day, as well. In NYC, you don’t have to swallow a 6% commission – as Keith and Steve indicated, there are alternatives out there. The WSJ article talks about home buyers and sellers being able to negotiate lower fees with their real estate brokers. This happens more often than you would think in NYC real estate as well, and there are many companies that follow a reduced commission business model (some better than others). In my opinion, great real estate brokerage service does not require the high commissions that are standard across the country, and I founded my real estate company to provide a high level of service to those particularly savvy home buyers and sellers who agree with this. I offer my buyer clients up to 2% of their purchase price cash back at closing, and a lower sell-side commission to my seller clients, significantly reducing the transaction costs associated with buying and selling a home.

Dan Gotlieb
Digs Realty Group
www.digsrealtynyc.com

Excellent Keith and Dan. Innovators like yourselves catapult the whole real estate industry into providing the service its customers deserve. All the best.

In Australia its much cheaper....however vendors pay up front for marketing campaign costs (about $4-6k).

We also do about 80% as auctions which means marketing campaigns are only about 6weeks long.