Barbara Corcoran founded her own real estate company, The Corcoran Group, in 1980. Over the next two decades, she grew her business into one of major brokerage firms in Manhattan before selling it for $66 million in 2001.
In an interview with entrepreneurCorcoran weighed in on the decision of the National Association of Realtors (NAR), a historical case which affects real estate agent fees. it eliminate 5% or 6% commission that sellers had traditionally paid, so a seller is no longer expected to pay a fixed commission rate. It came into effect in August and has been called one of the biggest changes in the real estate industry.
Related: Barbara Corcoran says this is the one question to ask before selling your home
And while Corcoran declared earlier this year that it is a “scary time” for real estate agents who will have to adapt to the change. Now she says it's “not a big deal” after all.
“All that changes is how commissions are paid,” she said. “You can no longer expect a salesperson to pay the commission.”
Barbara Corcoran. Photo by JC Olivera/Variety via Getty Images
Corcoran, who now does about 4.5 million dollars per year of its investments, explained that the burden may fall on buyers to negotiate a commission fee.
“Most buyers I've talked to don't like the idea of having to negotiate the fee they have to pay,” Corcoran said. “But actually what happens in the end, so far, is that most of the sellers are paying anyway. They say, lower the fee because then it will bring in customers.”
“It hasn't made much of a difference in my opinion,” she added.
Related: Barbara Corcoran needed to make job cuts. That's why she fired her mother first.
Almost 90% of houses in the US are bought and sold through NAR affiliated real estate agents.