Real estate transaction fees are what brokerages charge their clients regardless of how much the sale was. Typical transaction fees are a few hundred dollars, but could you be seeing an increase in the cost of these transaction fees? The answer is yes and here’s why. Real estate software technology companies have a hand in the real estate transaction fees, and two major companies just merged.
Within the past year, Dye and Durham, a global real estate software provider, took over Do Process, a Canadian company. The acquisition took place in December 2020 but the wave of effects is already coming down on the real estate industry hard. Dye and Durham are still continuing to pick up other small software companies and grow their own. This is a situation that should be monitored quite closely, especially by real estate investors and real estate firms.
Why Does This Merge Matter?
Competition in any industry keeps costs low for consumers. Consumers have more power of selection when there is more than one company to choose from. This keeps the offered costs low. When a merger happens, there is immediately less competition within the industry. That being said, the company conducting the transactions is stacked with the best employees. Their expertise and collaboration will speed up the innovation process in the industry.
How This Acquisition Will Affect You
Acquisitions and mergers reduce competition in the industry, which raises the price for consumers. You could end up seeing an increase in the cost of real estate transaction fees. Not to say the increase will be extreme, but it could reflect in as much as a few hundred dollars. It’s difficult to determine when this will happen, or for how long it will last, though. Keep an eye out on your next real estate bill! Luckily, this merger won’t impact the purchasing process, especially when you hire a real estate lawyer!
When you hire a real estate lawyer, you make the purchasing process much smoother and manageable. A real estate lawyer can easily walk you through all the current and required paperwork. A sped up real estate purchasing process can help get you and your family into your new home faster! In the market for a real estate lawyer in Winnipeg? Speak to the lawyers at Tacium Vincent & Associates and schedule your free consultation today!