HOW AGENTS GET PAID

OFTEN SELLERS WILL HEAR REAL ESTATE AGENTS QUOTE COMMISSION RATES OF 5%-7%. FIVE (5%) IS MORE COMMON FOR NEW CONSTRUCTION AND 7% IS MORE COMMON FOR LOWER PRICED LISTINGS ( UNLESS THE PRICE IS VERY LOW AND THEN YOU MAY SEE MINIMUM COMMISSIONS).

LIKE THE SONG GOES, YOU SHOULD LOOK AT THINGS FROM BOTH SIDES NOW!

LISTING SIDE. TYPICALLY, THIS IS HALF OF A TOTAL COMMISSION SO IN THE CASE OF A 6% COMMISSION, 3% WOULD GO TO THE LISTING COMPANY.

THE LISTING COMPANY MAY OR MAY NOT BE THE COMPANY THAT SELLS YOUR HOUSE. COMPANY “A” MAY LIST YOUR HOUSE AND COMPANY “B” MAY SELL YOUR HOUSE. IN THIS EXAMPLE, A WOULD GET 3% AND B WOULD GET 3%.

A BIG ADVANTAGE OF BEING IN THE MLS IS THAT ANY MEMBER COMPANY CAN “COOPERATE” TO SELL YOUR HOUSE. THIS NATURALLY LEADS TO THE QUESTION OF HOW MUCH DOES IT COST TO LIST YOUR HOUSE.

USUALLY, COMPANY B HAS NO IDEA OF WHAT YOU ARE PAYING COMPANY A BUT COMPANY A TELLS COMPANY B AND ALL OF THE OTHER COMPANIES HOW MUCH OF THE TOTAL COMMISSION THAT COMPANY B WILL RECEIVE IF THEY SELL YOUR HOUSE. ONLY ONE COMPANY CAN LIST YOUR HOUSE USUALLY, IT’S CALLED AN EXCLUSIVE LISTING. USUALLY, IF COMPANY A LISTS YOUR HOUSE AND YOU DON’T “EXCLUDE” FROM THE CONTRACT A PERSON THAT HAS SEEN YOUR HOUSE, EVEN IF YOU FIND YOUR OWN BUYER, YOU WILL PAY THE LISTING COMPANY THE LISTING PORTION AND IF NO OTHER AGENT FROM ANOTHER COMPANY IS INVOLVED, YOU WILL PAY THEM THE SELLING SIDE OF THE COMMISSION AS WELL. IN OUR MIND THIS DISCOURAGES YOU FROM PARTICIPATING IN YOUR GOAL TO SELL YOUR HOUSE AND RIGHTFULLY CAUSES ANGER AND FRUSTRATION AT TIMES WHEN YOUR HOUSE DOESN’T SELL. OUR PHILOSOPHY IS ENCOURAGE YOU TO PARTICIPATE (IF YOU WANT) AND THUS SAVE THE SELLING SIDE OF THE COMMISSION IF YOU FIND YOUR OWN BUYER. THIS GIVES YOU THE “BEST OF BOTH WORLDS” BY HAVING ACCESS TO THE MLS BUT ONLY HAVING TO PAY A SELLING AGENT COMMISSION IF AN AGENT SELLS YOUR HOME. IF YOU FIND YOUR OWN BUYER, WE DON’T CHARGE YOU THE SELLING SIDE AND SO ITS LIKE BEING A FOR SALE BY OWNER.