Monday, November 17, 2014
Real Estate Commissions
While a 6-percent listing commission is traditional, many homeowners do not realize that this commission is negotiable.
The traditional 6-percent commission is typically split between the buyer's agent and the listing agent, so each receives 3 percent on the sales price. Many brokerages will collect anywhere from 10-50% of the agent's commission to pay for overhead, leaving each agent with as little as 1.5% of the sales price on a home. Out of that amount, the agent must pay for all their other professional fees, insurance, marketing and business supplies.
Several local brokers already offer a 1.5% listing commission, with another 3% to the buyer's agent, for a total of 4.5% commission paid by the Seller.
One Seattle brokerage charges clients a flat $7995 on all home transactions below $1million, but collects $1000 upfront from buyers or sellers as a retainer. The balance is paid at closing.
The article went on to state that technology, such as video walk-throughs, make it easier for buyers to select homes without relying as heavily as in the past on their agents.
The real estate industry is constantly changing, and it is well-worth discussing this part of the real estate transaction in addition to other negotiable items.