What are Commissions and Fees? A Question for Real Estate Agents
Selling
When you sign up to sell your home with a real estate agent, you know that there will be some fees involved, but do you know which fees? If you’re like most homeowners, making sense of commissions and fees is difficult. These things probably make up your single biggest question for real estate agents.
Fortunately, fees and commissions don’t have to be this difficult to understand. Knowing what to expect can help you find the right real estate agent and enjoy the home sale process more.
What are Real Estate Commissions?
Today, many employees in any sort of sales role earn commissions. In the world of real estate, Realtors earn commissions for selling a home. In many cases, that fee is approximately 6% of the home’s sale price. Plus it is split between the buyer’s agent and the sales agent.
Real estate commissions commonly make up the bulk of a real estate agent’s income. There’s a good incentive for them to work hard to sell homes, in order to receive their 6% sales commission.
In addition to the commission, real estate agents may also charge fees. Which vary widely depending on the value of the home, the location of the property, and the type of sale.
How to Save Money on Real Estate Commissions
If you’re hiring a real estate agent to help you sell your home, and you’re concerned about the fees you’ll incur in the process, there are several easy ways to get great service without going broke. Simply follow these tips:
- Do your research.While a 6% commission is standard for real estate agents, some charge more and some charge less. With this in mind, it’s smart to shop around a bit to ensure you find a real estate agent that provides the best possible service (and the lowest fees) for you. Be advised that if you’re looking for a top-quality real estate agent, you may end up paying a “premium”. Which just means a higher commission.
- Negotiate commissions when you find an agent you like.Commissions are often negotiable, and you may be able to save thousands by asking if there’s any wiggle room in your real estate agent’s fees.
- Ask for referrals. Ifyou have family or friends in the area who have sold a home in the past, they may have recommendations for real estate agents that can be helpful. Ask the people you trust who they’ve worked with in the past, and consider looking into one of these professionals.
A Smart Question for Real Estate Agents
If you’re preparing to sell your home, the detail of commissions and fees is a smart question for real estate agents. In addition to helping you understand what you can expect to pay and where, asking this question also helps you gain an understanding for how real estate agents are paid, and why selling your home is so important to them.
