Key facts
- A Consumer Policy Center report estimates annual consumer costs from brokerage fees.
- The estimated annual cost to consumers is approximately $2 billion.
- Brokerage fees can range from $400 to $600 per transaction.
- These fees are criticized for being regressive.
- Fees are sometimes undisclosed until late in the transaction process.
A report released by the Consumer Policy Center estimates that consumers could be incurring approximately $2 billion each year in administrative and transaction fees associated with real estate brokerages. These fees, which are often not disclosed until the final stages of a real estate transaction, are a point of concern for the center. The report highlights that these charges can range from $400 to $600 per consumer. The Consumer Policy Center criticizes these fees for being regressive, meaning they disproportionately impact lower-income individuals, and for their frequent lack of transparency. The findings suggest a significant financial burden placed on consumers within the real estate market due to these brokerage charges.