7 out of 10 Licensed Realtors Say "Current Commission Fees Are Appropriate"

[Asia Economy Reporter Onyu Lim] Among real estate agents using the real estate platform Dabang, 7 out of 10 responded that the current housing brokerage commission is at an appropriate level. About 70% of respondents also opposed the government's proposed revision of housing brokerage commissions, viewing it as an act of shifting the government's real estate policy failures onto the agents.

Station3, which operates Dabang, announced on the 29th that it conducted a "Survey on the Government's Brokerage Commission Revision Plan" from the 12th to the 23rd targeting users of its real estate agent-exclusive application, 'Dabang Pro.' As a result, out of a total of 357 respondents, 253 (70.9%) answered that the current commission level is appropriate.

The most common reason given for considering the brokerage commission appropriate was that agents bear responsibility for risks such as verifying listings and brokerage accidents (39.6%). 27.6% of respondents cited an increase in agents' workload due to intensified competition in the brokerage industry, followed by 12% who said the service level of brokerage offices has improved.

Regarding the government's proposed brokerage commission revision plan, 66.9% of respondents expressed opposition. Among the reasons for opposition, 46.4% said it was an act of shifting the government's real estate policy failures onto agents. Additionally, 24.2% responded that the plan only reflects market conditions in some areas such as Seoul and the metropolitan area.

Respondents who supported the commission revision preferred the "7-step segmentation with fixed rates using a progressive method by segment (32.5%)" and "fixed rates using a progressive method by segment with partial negotiation for high-priced housing segments (29%)."

Since February, the government has been working on revising brokerage commissions, considering options such as △ subdividing the current 5-step transaction amount standard into 7 steps and applying a fixed rate with a progressive method by segment △ applying a fixed rate with a progressive method by segment but deciding brokerage fees for high-priced housing transaction segments through negotiation between real estate agents and transaction parties △ applying a single rate or a single flat fee regardless of transaction amount.

Despite the negative responses to the commission revision, 70% of respondents said that brokerage service improvements are necessary. In particular, more than half (52.3%) answered that management of false listings should be strengthened. Improvements in verifying listing conditions and after-sales service (AS) after brokerage (11.3%), as well as strengthening responsible brokerage (9.5%), followed.

This survey was conducted online targeting Dabang Pro users. The sampling error is ±5.19 percentage points at a 95% confidence interval.