During the home buying or selling process, most people enlist the help of a real estate agent. If you have seen some of the real estate-related reality shows out there, or have worked with a real estate agent in the past, you know that agents are paid based on the commission of the home sold. Commission percentages are always negotiable, so here are a few things to note about who pays the real estate agent.
How It Works
Real estate agents work for real estate brokers, they are licensed to sell real estate but they cannot work independently of the broker; additionally, all of the fees the agent is paid pass through the broker. Only the real estate broker can pay a real estate commission to the agent, as well as sign the listing agreement with the seller. If both the buyer and seller in any given transaction have chosen to use a real estate agent, the agents will be paid by their respective brokers.
How Much Do You Pay an Agent
Although some people think that there is a fixed rate for the percentage of the sale the agent receives, it is important to remember that the percentage is always negotiable. The standard fee for a standard brokerage is six percent of the cost of the home in question. Sometimes the percentage is lower for homes that have a higher listing price.
If You’re A Buyer
It is important to do your research and know who you’re dealing with. Know if you’re working with an agent or a broker and whether or not your potential new home is an exclusive listing or not. You are the one spending a lot of money on your new home, so knowing who you’re working with will help you determine who has your best interest in mind at all time.
If You’re A Seller
Choose the right agent or broker to sell your home by doing your research. Make sure they will market your home accordingly and work to get your home sold in a timely and financially efficient manner. Negotiate where you can, and know that even one percent lower can means thousands of dollars in your own pocket after the transaction.
Commissions for real estate agents is one of the least understood elements of the whole process, and it is beneficial for you to remember that everything is negotiable and the buyer has the potential to end up paying for some or the majority of the sales commission. For more information about who pays the real estate agent, visit here.