U.S. Real Estate Transaction Costs Among Lowest In The World
August 29, 2007
According to Global Property Guide, a study by the Organisation of Economic Co-operation and Development (OECD) rates real estate transaction costs in the United States among the lowest in the world.
The report shows that U.S. real estate transaction costs represent 9.07 percent of property values, compared to Korea, which has the highest rates at 22.08 percent.
Transaction costs include registration fees, real estate agent fees, legal fees, and transfer taxes. The bulk of U.S. transaction costs are comprised of agent fees followed by sales and transfer costs, then legal and registration fees, which are about even.
South Korea’s high transaction costs are tied to a number of levies imposed on home buyers that are intended as set-asides for, among other things, affordable housing. But the OECD contends that South Korea’s high transaction costs exacerbate the country’s housing shortage and need to be addressed.
Posted in All Things San Diego, Lending, Local Business, Real Estate, Things of Interest
Loving the San Diego Coast!
