A basic illustration of the Seller’s Agent and Buyer’s Agent commission
+More illustrations below explaining additional perspectives of the real estate commission.
Sellers negotiate a commission with an agent to market their home, process paperwork, manage deadlines, and negotiate with buyers/buyers agent.
The Listing Agent (usually) offers half of his commission to a Buyer’s Agent to incentivize the sale.
Be Aware: If approaching a Listing without an agent to represent you as a buyer, be aware that this commission split isn’t offered to you in way of fee, credit, or discount. However, it is negotiable and the listing agent’s intent is to make a deal happen. That being said, this scenario brings added paperwork and stress to the listing agent and the incentive to help is very limited.
Who Pays the Commission?
Technically, the commissions are paid by the seller at the closing table, the fees are subtracted from the proceeds of the sale.
However, in a different light, the buyer is paying them because the sellers have taken the commission into account when determining an acceptable listing price. In turn, it’s then split between the listing agent’s brokerage and the buyers’ agent brokerage; finally the agents are then cut a check after the brokerage takes it’s cut.
Depending on the Value Proposition of the Agent, the pain of the commission check can be soothed. Contact me to let me show you what I have to offer….or keep browsing my blog and you’ll quickly find out.
Where Does All the $ Go?
Other Resources
- The REAL Value of a Strategic Agent and his Marketing Plan
- First-Time Home Buyers : The Ultimate How To Buy Guide
- First-Time Home Sellers : The Ultimate How To Sell Guide
- What to Ask When Signing an Agreement
- How to Vet an Agent
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The above article “Understanding Real Estate Agent Commissions” was provided by Tanner Johnson. If you’re thinking of selling or buying, I’d love to share more information with you.
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