Facts About Real Estate Commission
How to realtors get paid? Who pays the broker fees? How do real estate commissions work? Read on and get the facts!
Anytime a home is listed on the MLS someone signs what is called a listing agreement. Inside a listing agreement, amongst other things, is a clause that lays out how much a LISTING AGENT (the agent selling the property) and the BUYER’S AGENT (the agent who brings the buyer) will each be paid. The seller of a piece of property pays out of their proceeds both the listing and buyer’s agents.
All REALTORS through our system of cooperating brokerages agree to abide by the real estate commission split for a property based on that properties listing agreement. Simple right?
So what happens if you don’t have use an agent to buy your property? You should save money because the seller isn’t having to pay two agents right? WRONG!!!!!
If there is no cooperating broker then the LISTING AGENT winds up making double the money because they wind up acting as a DUAL AGENT which means instead of each party having a licensed REALTOR advocating on their behalf you have ONE REALTOR acting as an advocate for both parties.
Now is this a bad thing? Not always, some agents walk the tightrope very well between two parties but to make a legal analogy it’s like one lawyer showing up to represent the plaintiff and defendant in court and because of this in order to act as a DUAL AGENT both the seller and the buyer must agree to allow that agent to do so.
So what should you make of all this? If you are shopping for a piece of property, be it a house or vacant land, find a great REALTOR and use them! Find a REALTOR that is attentive to you, takes your calls, is knowledgeable about the area, communicates well, is loyal to you, and above all wants you to be happy. When a REALTOR is helping you beyond the sale you know you have found a SPECIAL, LOYAL REALTOR.
When you find that special REALTOR be LOYAL to them! Loyal REALTORS work around the clock spending their time and money doing research and physically out searching for properties for their clients!
ABSOLUTELY DO NOT go around your agent because it will wind up COSTING you money because you will wind up dealing with a REALTOR who IS NOT loyal to you and DOES NOT have your best interest in mind.
Great REALTORS want to do a good job for you, we want repeat clients who become friends and recommend us to their friends and families.
Many call it networking but that cheapens what a great REALTOR does.
Great REALTORS spend time and effort developing long term relationships with clients who become friends that we can be advocates for over and over again as they make some of the most important investment decisions in their lifetimes.
Allow those of us who care to be that advocate for you. Allow those of us who care to be that advocate for you. If you are looking for a home for sale in Covington or thinking about listing your home, give us a call. With out unique 1 Percent Lists marketing plan, we can save you thousands of dollars in selling your home.