Why the Current Broker Fee Model Matters
The current way brokerage services are paid helps reduce the financial burden on buyers, especially for first-time and low-income home buyers.
Key Insights on Real Estate Broker Fees
Prevents a Greater Cost Burden
The current model keeps costs lower for buyers by preventing additional out-of-pocket expenses that would otherwise make buying a home even more costly.
Supports First-Time and Low-Income Buyers
For first-time and low-income buyers, an additional direct payment to brokers would add thousands to an already expensive transaction, creating more financial hurdles.
Limited Savings Impact
The typical American household has about $5,300 in savings—only a fraction of the median $16,100 down payment needed for a starter home. Keeping broker fees within the transaction reduces the need for higher savings.
Increases Home Accessibility
Since most lenders don’t allow broker fees to be financed, every 1% in out-of-pocket broker commissions would put a home $2,300 further out of reach for first-time buyers.