In a typical real estate transaction, a seller signs a contract with a brokerage firm to sell their home. At that point they agree to pay a commission fee upon the sale of the property. This fee is typically split between the buyer’s agent and the seller’s agent.
The brokerage firm then takes a percentage of the commission fee as their share of the profits. This percentage can vary depending on the brokerage firm and the agreement between the firm and the agent.
The real estate agent commission can vary depending on the area, but it is usually around 5-6% of the sale price.
For example, let’s say a home sells for $500,000, and the commission fee is 6%. This would result in a total commission fee of $30,000. If the seller’s agent and the buyer’s agent each receive 50% of the commission fee, they would each receive $15,000.
Now, let’s say that the brokerage firm takes a 30% share of the commission fee. This means that the brokerage firm would receive $9,000 of the $30,000 commission fee, leaving the seller’s agent and the buyer’s agent with $10,500 each.
The brokerage firm’s share of the commission fee is used to cover various expenses associated with the sale, including marketing, advertising, office overhead, and other costs.
In addition to the commission fee, some brokerage firms may charge additional fees for services such as advertising, marketing, and administrative costs. These fees can vary depending on the brokerage firm and the agreement between the firm and the agent.
It is important to note that not all brokerage firms operate on the same commission structure. Some firms may charge a flat fee for their services, while others may negotiate a different commission percentage depending on the property or the circumstances of the sale.
Ultimately, the commission fee paid by the seller is split among the agents involved in the sale and the brokerage firm, with each party receiving a percentage of the fee. While the commission fee may seem high, it is important to understand that the fee is used to compensate the agents for their time and expertise and cover the costs associated with selling a home.
Ron & Don pride themselves on working harder than any other agents to make sure every dollar of your commission is put to work to get you more for your door.
If you’re ready to discuss selling your home, schedule a Ron & Don Sit Down now!
Ron Upshaw
Ron has been a part of just about every kind of real estate transaction you can think of. He understands that finding the perfect place for you and your family is crucial. Schedule Your Sit Don with Ron today!