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This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.
Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.
US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters
Will this decision have an impact on rate structures in the AEC industry?
------------------------------Chad Morrison P.E., F.ASCEProfessional EngineerGreenville RI------------------------------
I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings?
Civil engineers are neither compensated for what they do nor for the amount of rick they take.
I have always wondered the same. As an owner of a civil and surveying firm, our risk was high and liability essentially forever. The land owner, developer, contractor, local approving agencies, realtors don't have that liability, and yet a realtor can make a lot of $ on one sale, not to mention resales like you said. 😡
The ruling is a financial win for consumers. Being both a licensed real estate broker and a professional engineer, supporting negotiable real estate commissions will allow consumers to keep more of their home's value. It is early in the disruptive cycle to forecast the impacts that this will have on the AEC industry.
I don't think it will have much if any impact to the AEC industry. It's my understanding that NSPE has always stayed away from fee structuring for this precise reason. I remember this issue coming up in the 80's when I was starting my career. It is nisapointing that it took this long to start to get this issue corrected.