Discover Who Pays Real Estate Commissions

There undoubtedly are a whole lot of points to consider when you are selling a home. 1 of the things that you may well worry about is who pays real estate commissions? Is it the purchaser, the seller, or some mixture of both? The answer to this question may perhaps surprise you.

In a typical real estate purchase the seller of the home is the one who pays real estate commissions. This is usually 6% of the ultimate sale price having 3% of that going to the selling real estate agent and 3% going to the buying real estate agent. Having said that, you should also understandthat these agents have to then give a percentage of the commission to their broker. Whilst some real estate agents are able to keep 100% of the commission and only pay a desk fee to the broker, most of them are going to pay anywhere from 30% to 50% of the commission to the broker.

However, considering that the seller one who pays real estate commissions, the commission is going to tremendously effect the price of the house. The seller is going to try and increase the price of the house so that they can cover the price of the commission he has to pay at closing. This, consequently, has a negative impact for the purchaser since the house is going to cost more money to buy. Additionally, it makes it more troublesome for the seller to negotiate and lower his price because he must cover his costs. Not being able to reduce the price can often be the difference between getting the sale or not.

So, is there any possibility of avoiding this commissions?

Well, yes and no.

Like stated earlier, when a realtor is responsible for selling your home there is going to generally be a fee of 6% that goes along with it. Most brokers will not enable their agents to lower their commission in order to get the sale.

However, if you go with a flat fee listing service then it is feasible that there won't be anyone who pays real estate commissions or at most the commission will only be 3% to the buying agent.Either way, this will enable the seller to come down in price and save everybody thousands of dollars.