British are upset paying even 3% commissions!!

http://news.bbc.co.uk/2/hi/business/6172846.stm. Yet most people is this country still pay 5 or 6% without giving it a thought. Why such a discrepancy? For many Americans they still have this misperception that paying more in commission will result in the home selling faster or for more money. The billions of dollars spent by the high commission brokers have brainwashed consumers into this fantasy. If you are a regular reader of this blog you already know that there is not a shred of evidence to support these perceptions. In fact a lower commission does make the home more competitive resulting in a faster sale. Not paying thousands more nets the seller more money at closing and we have thousands of such cases here at Homeowners Concept.

Another reason is that many sellers cannot break away from the "obligation" to list with a high commission agent because he or she is a relative or "friend" who still charges 5 or 6% commission and in many cases is unskilled or part time in real estate. This compromises the saleability of the property and prolongs the sale.

Lastly, the consumer in this country has long felt rich and confident in the economic future that paying more for many things was part showing off and part keeping up with the "Joneses". Nevertheless, with the economic downturn of late many people are reassessing this desire to overspend for products and services. In other words, the American consumer is becoming more savvy. Maybe in the not too distant future ALL sellers will be paying reasonable commissions that wise Homeowners Concept sellers currently pay.