The Economist asks why commissions are so high

“Why is it so expensive to buy or sell a house in America?” the Economist magazine recently asked.

According to the magazine in its unsigned piece, the short answer is greed.

It reports that my British counterparts charge just 2-3 percent of the sale price to “list the property, find a buyer, help you negotiate a deal and guide you through the transaction.”

Forget that here, the Economist says in its article, titled “The great realtor rip-off:”

The demise of the 6% commission may still be inevitable. But for now, it seems a long way off.

According to the magazine, one theory Continue reading