If you are out there to buy or sell a property, there is a big chance that you will end up taking the help of a real estate agent. Participation of a real estate agent has many good reasons that make the buying and selling process effortless for both buyer and seller.
When a property is sold, the real estate agent involved throughout the transaction of the deal collects a fee called “Realtor Commission”, or sometimes as “realtor fees”.
The real estate agents make money through commissions based on a percentage of a property selling price. The earnings of an agent depend on many factors like the sale price of the property, the number of transactions they complete, how much percentage they get on the sale price, and the split of the agent’s commission with their corresponding broker or buyer’s agent.
Sometimes there is an overlap between the term agent and broker to people who are new to the industry or not much familiar with it. Both works for the same goal but in a different manner.
In the real estate business, licensed agents can sell property in their state or work under a brokerage, while a broker has the license to own a real estate firm, sell properties individually, or can employ real estate agents to facilitate the real estate transactions.
Find yourself a new home or sell your property, contact your nearest Real estate brokerage in Houston.
Realtors are never paid upfront by the buyers or sellers they represent. The realtors get a commission on the closure of the deal. Further, every agent has an agreement with their brokerage firm specifying the agent’s and broker’s cut on the earned commission. The split can be according to the mutual understanding of both parties.
A listing agreement (contract) is signed between the agent and the owner of the property where the owner authorizes the agent to represent on their behalf, find the buyers for the property, and negotiate. In return, the owner pays a commission. The agent’s compensation is specified in the listing agreement.
Usually, the standard commission is 6% though it can range between 4% to 6% according to the areas across the country. Sometimes commissions can also fluctuate depending on the market.
Don’t be in the wrong impression that seller agents will be putting 6% in their pockets. Further, the seller agent has to splits the commission with the buyer’s agent. Some of you might be thinking about this split, or some sellers might not like the idea of their agent sharing half of the fee with the buyer’s agent. But, don’t overlook the fact that to sell your property, you need buyers, and to get more buyers, one has to have the right marketing strategy.
Continue reading to know how the idea of splitting the agent’s commission works as a win-win situation for both the buyer and seller:
A seller should expect to pay 5-6% of the total home sale price to realtors as commission. Under different circumstances, the rates can be negotiated, depending on your realtor or brokerage firm.
Contract with a real estate agent, underline the offers, payment, timeline, formalities involved in legal paperwork, and other terms and conditions involved for a better seller-agents relationship.
If you are searching for a realtor in Houston TX, contact Jay Thomas Real Estate Team. The team is effortlessly working in finding people their dream homes. Contact us at +1 832-889-5607, or you can email us at firstname.lastname@example.org. You can be the next lucky person.