3. Buyer Agreement Fees: The Future of Real Estate?

When news broke on a rainy, overcast Wednesday in March that Koenig & Strey would be requiring its buyer clients to sign an exclusive buyer-broker agreement – and that a $250 fee would be attached to the document, upon a successful closing – the Chicagoland real estate community reacted with ridicule and praise in equal parts; yet at the time, Koenig’s decision thrust a spotlight upon how real estate operates, and how despite the radical aesthetic changes that the industry has experiences, its underlying business models have soldiered on with remarkable consistency. But should agents incorporate new fees into their business models? Should the commissions system be abolished? And can discount brokerages provide the same level of service as traditional outlets? Read our cover story to find out.