Article on Commissions

I was reading an article on a Realtor news site about real estate commissions and how they are going to go lower. It included the following…

How do you explain, to a consumer, why it costs them three times as much to sell a $900,000 home versus a $300,000 home? How do you justify that $54,000 bill for selling said $900,000 home? Why are typical commissions in Australia, Denmark and Finland 2 percent, and 1.5 percent in the U.K., yet 5.5 percent in the U.S.? (according to The Wall Street Journal)

And why hasn’t the internet — and all the newfangled technology that has made real estate transactions more efficient — lowered commission rates? I don’t know; it’s quite the mystery, especially given that efficiency improvements drive prices down in virtually every other industry.”