Selling your home can be stressful, and one thing that can help is knowing exactly what you are getting yourself into in terms of cost.. One important thing to think about is how much commission you will need to pay your Realtor. It doesn’t matter whether you are buying or selling a home, there are always fees involved, but studies show that on average only 9% of sellers enlist the help of a real estate professional. On the other side, over 88% of people who were buying homes did enlist the help of a professional. When you sell or buy a property, your Realtor will get a percentage fee at the end of the sale. They aren’t paid until the transaction has gone through, even if they spent months working on the case.
How Much Commission To Expect To Pay
Commission is generally negotiable between the listing agent and the client. Many brokerage firms offer discounts to sellers, because not many sellers choose to enlist their help. In most cases, the typical commission is around 6%; however it is common for it to be split between the buyer agent and the listing agent. This split doesn’t have to happen evenly. For example, the seller might give 5.5% commission. In this instance, the listing agent could receive 3% and the buyer agent could receive 2.5%.
Some real estate agents are brokers, or of a position that requires additional licensing and training. The commission payment goes to the broker who manages the brokerage where the Realtor works. In this instance the commission would be split between the broker and the agent based upon a set agreement made prior to the sale. It is often the more experienced agents that earn more from the commission, and therefore they take a higher cut when compared to inexperienced agents.
Seller and Buyer Information
The total commission is technically always paid by the buyer at the settlement. The fee is almost always subtracted at the proceeds of the sale of the home. In some respects the buyers do pay the commission also because they are purchasing the property and the seller has taken the realtor commission into account when they set the price of the property. If you were to sell a property without adding on 6% for the fees, you would lose out on that 6% through the value of your home, so even though the seller does lose it, it really is paid for by the buyer in the asking price of the property.