Attacking a ‘quasi-cartel:’ Seattle real estate firm aims to cut agents’ commissions
Nov 13, 2014, 6:31am PST
A new Seattle online real estate company said it aims to cut commissions paid to real estate agents, calling the industry a "quasi-cartel."
In a move that will obviously inspire passionate debate in the Seattle real estate community, a new Seattle online real estate company said it aims to use technology to cut commissions paid to real estate agents, calling the industry a "quasi-cartel."
Surefield, an online residential brokerage, said it will undercut the traditional 6 percent fee paid by seller (3 percent for the buyer’s real estate agent and 3 percent for the seller’s real estate agent) to 1.5 percent.
The company said it will rely upon 3-D images of homes for sale by "giving buyers the most realistic, remote tour of a home, enabling a new level of commission savings with no trade-offs."
"The U.S. real estate industry has been operating as a quasi-cartel for far too many years, just look at the high commission rates as proof of tacit collusion," said David Eraker, Surefield CEO, in a statement that will draw the ire of many a Seattle real estate agent.