Central Minnesota Commission Going Up in Tough Times

Originally posted at www.StCloudEdina.com/blog on January 9th, 2009:

I am wrapping up some of the initial numbers for the real estate sales from the St Cloud MLS and one stat jumped out at me recently. It looks like the average payout that home sellers are willing to give to an agent who finds them a buyer (Compensation to Buyer's Broker) has gone up quite substantially in the past few years.

According to the St Cloud MLS, commissions paid to a Buyer's Broker for a real estate transaction have gone up 15% in the last 4 years.

What does that mean? People are more willing to pay a premium in order to get their homes sold.

It kind of goes against the ordinary flow of business during a recession. Most people flock to the Walmarts, McDonald's and other quality (but cheap) businesses during tough times. In real estate, they flock to who does the job best.

It makes sense. If selling real estate is tougher than ever, you would want to use the real estate agent who is the best. If that means spending an extra percent or two, so be it. It is better than making payments on a home you no longer want and getting less for your home when it does finally sell.

Look for my year end "Tangen Report" to be posted here in the next week. For those of you who don't know, the "Tangen Report" is a quarterly breakdown of the real estate activity in St Cloud, Sauk Rapids, Sartell, and Waite Park in Central Minnesota.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Home of the e-Market Analysis (Free home value estimator)

http://JasonTangen.EdinaRealty - Search homes for sale in St Cloud MN