Alabama real estate agents report a $1.8 million loss in 2014
A new report from the Alabama Real Estate Commission shows the agency’s revenue from real estate commissions fell $1,849,906 in 2014, or a 0.3% decline from the previous year.
The revenue loss was due to an increase in the amount of commissions earned by agents and a decline in the number of commissions offered, said the report, which was compiled by the commission’s Bureau of Consumer Protection.
The bureau has received reports from more than 1,000 real estate brokers in the past year, including agents.
It’s unclear what caused the decrease in revenue, which the commission estimates was $944,913, or $1 million.
The bureau’s financial manager, John Boulter, said he couldn’t provide an estimate for how much revenue was lost to the agency because it’s not a financial audit.
The commission said in its financial report that its revenues from real property commissions decreased due to: A rise in the percentage of agents offering commissions, due to a rise in their commission offers.
A decrease in the volume of real estate transactions and a decrease in transactions between the commission and real estate brokerages.
Boulter said the commission has been making changes to the way it collects fees.
In September, the commission changed the rules that govern how many real estate services agents must offer in order to collect a commission.
Agents now must offer one-half the number offered by a broker in an average of one transaction, he said.
Boultter said that the bureau was not the only one making changes.
Other agencies have been considering the change, he added.
The Alabama Real Property Commission was established in 1973, according to the commission website.
The commission’s current board includes members who are both real estate and business professionals.
It has five commissioners, four of whom are former members of the Alabama Senate and two of whom were former Alabama House members.