How much commission does a realtor make? Is realtor commission negotiable? What is the standard realtor commission? Who pays realtor commission? In this video, I discuss all of these questions and give my reasons on why paying a higher real estate commission will actually net you more money on the sale of your home.
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How much commission does a realtor make?
A Realtor commission varies depending on how much real estate commission is negotiated between the Seller and the listing agent of the property. Keep in mind that the Seller of the property is also responsible for paying the buyer’s agent commission in addition to the listing agent. There is no standard commission rate within the industry so it really depends on what is negotiated between the listing agent and the seller. Traditionally speaking, most sellers pay anywhere between 4-7%. Keep in mind that the higher commission you pay, the more likelihood you are to get a top Realtor and someone who will likely negotiate better on your behalf.
Is realtor commission negotiable?
Yes, realtor commission is negotiable as there is no set standard commission in the industry but experience has told me that the more commission that is paid to the listing agent and the buyers agent, the more likely both parties will work together to get the transaction closed. Paying a realtor commission will give not only the listing agent the money they need to properly market your home but will also get a buyer’s agent more excited to show your home and work with us if the negotiations get tough during the transaction. If a buyers agent doesn’t feel like he’s getting compensated fairly then the less likely they are to want to keep their client in the transaction and the more likely they are to tell their client to move on. At the same time, a listing agent is a lot more likely to spend money marketing your home if they feel like they are being compensated fairly and also more likely to keep the deal together when things get tough by either using some of their commission. At the end of the day, paying a higher commission will likely net you more money on the sale of your home in a shorter amount of time.
What is a 1 percent commission realtor?
There are discount brokerages out there and realtors who are willing to lower their commissions to 1% to help you sell your home. Keep in mind that these are generally less experienced agents and the same agents doing absolutely nothing to market your home other than putting a sign in the yard. A 1 percent commission realtor is NOT going to do the marketing or negotiating necessary in order to get you top dollar. By hiring a discount broker, you will likely less money on your home than had you pay a full 6% commission to a professional realtor.
Are you considering selling your home and have questions about realtor commission fees? If so, please contact me directly or comment below.
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