In residential purchase / sale transactions, the standard is 6% of the property’s sale value, which is divided 3% for each of the agents involved in the transaction, (the buyer’s representative and the seller’s). In residential rental transactions the standard is 10% of the annual contract value or one month’s rent. This commission is divided equally for each of the agents participating in the transaction. Click here for more information about 100 percent commission real estate broker FL.
Who pays the commission?
The property owner is always responsible for paying the commission, both in the case of sale and rental. On the closing day, the title company or attorney representing the transaction is responsible for paying the commission.
Do you know how the real estate advisor is paid?
Real estate consultants are not paid by the hour, nor by completion of work performed, they only charge if the protocolization (closing) is achieved. An agent can spend days or months working with a buyer or seller and if the transaction is not completed they are not rewarded for their time.
Where is the commission amount stipulated?
It is stipulated in the agreement to promote the property (listing agreement). This agreement stipulates the percentage of commission that the agent will receive at the time of closing the transaction and the percentage that will be paid to the agent representing the buyer / tenant. This percentage is published in the multiple listing system (MLS) along with the other data of the property, in this way the agents are aware of how much their fees will be at closing time. The support and advice of a real estate professional represents every dollar of the commission.
Does the buyer pay commission?
The home buyer in the vast majority of cases does not pay any commission to the real estate agent.
As a seller, can I save the commission?
89% of all sellers use the advice and support of a real estate agent. Only 8% of all sellers try to sell the property on their own (known as For Sale By Owner) with the sole purpose of saving six percent (6%) of the commission.
However, it is important to take into account:
According to national statistics, the price that the “For Sale By Owner” achieves is 19% less than what a real estate consultant can achieve. If that 19% is subtracted 6% of the commission, the owner would achieve, at least, 13% more if he had the professional services of a real estate agent.
Cost of printed advertising (flyers, brochures, “open-houses”),
Sales price estimation and market monitoring
Selection of potential buyers
Coordination of visits
Legal implications as a seller
Security and time that prevents you from eventual stressful and risky situations for yourself and your family group.
Taking into consideration that the decision to carry out a real estate transaction is one of the most important in a person’s life, that is why we recommend that you make sure to hire a professional, a real estate agent who has a capable team to provide you with the legal, financial, succession and tax advice that you need.