Despite the news report claims, there has never been a standard model nor a standard commission in this industry. The categorization of all brokerages as identical showcases the ignorance of the author.
The claim of there being a standard commission rate was arrived at by researching the advertisements of homes for sale in various MLSs, determining the amount of compensation offered to buyer agents, then doubling it. This method of analysis is deeply flawed.
What has also been missed by many counterfeit critics is the extreme difference in business models within the industry, divided into traditional-split models versus newer flat-fee models, with structures as far apart as the east is from the west.
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