Understanding Realtor Fees and How They Fit Into the Overall Cost of Selling
The real estate industry works on the basis of payment upon a successful result. This simply means that if your home does not sell or even close, then you don’t pay. However, this brings about this question, what is the fair fee to pay for a successful real estate transaction?
How to understand realtor fees?
The real estate industry charges only on the successful transactions. When you choose a real estate agent to sell your home, they present to you a listing agreement. It’s usually multiple listing sales and you will have to agree on a certain fee for their services. This fee includes payment for what they will do for you and the amount of money that you will offer to the buyer’s agent for his or her participation in the whole transaction process. The buyer’s agents are paid by the seller through their listing agent and therefore, both agents get paid when the deal closes.
The commission that is offered to the buyer’s agent is listed on the MLS listing. If your listing offers a higher percentage of fees to the buyers, it is likely to get more views than if you were offering a less percentage in fees. For example, if your listing offers 3% to the buyer’s agent, it will get more positive views than if your listing offers 2.5%. It is recommended for you to offer a commission that ranges with the one offered in that specific area. You can ask your listing agent to show you all the broker full listings so that you compare the commissions and know which one to offer.
When selling or buying a home in Bergen County, it is wise to you and your agent to go through all the things they are including in their real estate services package. These things include the property, video tour, advertising, and photographs. This will help you know the total costs and decide on a fair price. Real estate agents are paid a commission when they help you buy or sell a home. The commission they receive depends on the homes price. The real estate commission is 5% to 6% of the homes price. Both the buyer’s agent and the sellers’ agent receive 2.5%-3% commission each.
Usually, good real estate agents are the ones that provide great services and deliver successful transactions. They deserve to be paid a fair fee. As a seller, you should give a chance to your agent to do the best job. Let them push the buyer to a price that you can afford. Remember that a buyer pays the cost of the fees that are built into your asking price. In some occasions, some agents will lower their commission fees if they are representing both the buyer and the seller.