Determine Who Pays Real Estate Commissions



Posted: Tuesday, January 26, 2010

by Adam Waxler
uKeepCommission Real Estate

There certainly are a great deal of things to consider when one is selling a house. 1 of the things that you may possibly think about is who pays real estate commissions? Is it the purchaser, the seller, or some mixture of both? The answer to this question may possibly surprise you.

In a typical real estate transaction the seller of the house is the one who pays real estate commissions. That is usually 6% of the final sale price tag with 3% of that going to the selling real estate agent and 3% going to the buying real estate agent. Yet, you should also understandthat those Realtors must then give a percentage of that commission to their broker. Although some realtors are able to keep 100% of the commission and only pay out a desk fee to the broker, the majority of them pay from 30% to 50% of the commission to the broker.

Yet, since the seller one who pays real estate commissions, that commission is going to significantly effect the price of the house. The seller is going to raise the price of the house in order to cover the price of the commission he must pay at closing. This, in turn, has a negative impact for the purchaser since the house is going to cost more money to buy. It also makes it more difficult for the seller to negotiate and lower his price tag as he has to cover his expenses. Not being able to reduce the price can often be the difference between making the sale or not.

So, is there any chance of avoiding this commissions?

Well, yes and no.

As stated earlier, when a realtor is selling your house there is going to generally be a cost of 6% that goes together with it. The vast majority of brokers will not allow their agents to lower their commission in order to make a sale.

On the other hand, if you go with a flat fee listing service then it is feasible that there will not be anyone who pays real estate commissions or at most the commission will only be 3% to the buying agent.Either way, this will allow the seller to come down in price and save everybody thousands of dollars.

Do you know who pays real estate commissions? No one has to if you use a flat fee listing service. If you're looking to save thousands of dollars when selling your Florida home then make sure contact uKeepCommission Real Estate at http://www.uKeepCommission.com or call 941-465-9207.
This Article has been viewed 74 times. (Not updated in real-time.)
No comments yet.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.