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According to the New York Times in their article titled “Why Buyers and Sellers in Hot Market Are Still Paying Realtors High Commissions,” the real estate industry in the current state of the housing market is experiencing increased demand and supply imbalance, leading to higher home prices and fewer real estate agents competing for the same pool of homes. This situation has enabled certain high-commission real estate brokerages to capitalize on the trend and maintain their own high commission rates through aggressive marketing and dependence on volume sales. Without strong national listsings or affiliations, buyers and sellers often feel powerless to negotiate the high commission fees during the transaction process. Some critics argue that uncertain market conditions and fierce competition have not been enough to lower these commissions. However, others suggest that online listing services and alternative or reduced-fee real estate services could be a viable alternative for prospective buyers and sellers. Notably, some brokerages have adapted to the market by changing their business models or offering slightly lower commission rates to improve their competitiveness in the market.
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