Part 11/18:
Commission reductions further exacerbate the situation. The traditional 5% commission split has eroded, with agents now often earning closer to 3% or less per transaction. In some cases, buyer agents are accepting flat fees or 1% commissions to close deals. For an agent handling a million-dollar property, this means a critical drop from approximately $14,000 in gross earnings to less than $10,000, with net income further squeezed after expenses.