Let’s face it, the home buying process is easier when you have the right real estate agent working with you. Whether you are the buyer, or the seller, a real estate agent earns a fee for their services which include being your advocate, getting the best price, and eliminating headaches during the sale process. After the sale closes, the real estate agent’s commission is usually paid at a standard rate. Of course, there are exceptions and instances in which variations can be added to the contract.
The commission paid to a REALTORⓇ when they sell a home is also known as a real estate agent fee. In most cases, the commission is factored into the sellers listing price when the house goes on the market as a part of the overall cost. You may not know who pays the commission of the real estate agent and have other questions about the fee.
FAQ’s About Real Estate Agent Fees
Here are the 6 most frequently asked questions about real estate agent fees. If you have these, and other questions, do not hesitate to call the offices of Jeff Barchi to talk to a team member. You can discuss all of your needs with a REALTORⓇ, or another licensed real estate agent to understand all of the steps in the homebuying process. You may also find the right real estate agent to work with you to make your experience more enjoyable, and memorable.
- Q: What is the average cost of realtor fees?
A: Many people entering into a home sale want to know, “How much are realtor fees?” Homeowners who use a real estate agent, or broker when selling a home pay a real estate agent after closing. The standard commission percentage is 6%, but it varies between agents.
- Q: How does a realtor get paid?
A: If you are a homebuyer, you can scratch “paying the real estate agent” off of your To-Do list. In a home sale, the seller almost always picks up the payment from the proceeds of the sale. An agent fee is paid by the home seller to the broker, who then shares a percentage of that with the real estate agent.
- Q: Is the realtor fee the same for buyers?
A: Typically, the realtor fee for homebuyers and sellers is slightly different, but that does not mean that the homebuyer is off the hook. The home seller pays commission for the seller’s agent, and the buyer’s agent, but sometimes there are additional fees. A home seller can account for the realtor fee they are paying and then pass additional costs along to the buyer by raising the listing price.
- Q: What are the closing costs for a home sale? Do they include realtor fees?
A: Real estate agent fees do not include closing costs. These miscellaneous fees are separate from the commission that a real estate agent earns at closing. Closing fees include loan processing, title company fees, surveyor costs, insurance, real estate deed recording, as well as HOA (homeowners association fees), and taxes. Usually, the amount of real estate closing costs vary with every home sale, ranging from 2% – 7%.
- Q: Can I negotiate real estate agent fees?
A: Real estate agent fees are usually based on commission so they vary from state to state, and maybe different from one brokerage to the next. However, you can negotiate real estate agent fees.
- Q: Do I still have to pay commission fees if my house does not sell?
A: If your real estate agent is not able to sell your home within a specific timeframe, you may not have to pay a commission. You see, real estate agents get paid when they sell your home however if the house does not sell, you do not owe them any commission. In a real estate contract, your agent may include a fine print clause that says otherwise. Typically, these contractual statements bind you within a time frame for payment, define breach of contract fees, or require an agent commission after the contract period ends if your buyer was a prospect.
How-To Find the Right Real Estate Agent
The most important step in buying, or selling your home is: reading the contract. While a real estate agent is only entitled to a commission when they make the sale, but if your home is on the market past the indicated date on the real estate contract additional fees may be applied. In most cases, your real estate agent will successfully make a sale, and then earn their commission based on their performance during the homebuying process. Call Jeff Barchi to discuss how working with a real estate can make selling your home a more enjoyable process. A qualified agent can price your home correctly, market the property, communicate, screen buyers, negotiate terms, inspect and represent the home, appraise the home and finalize it for closing a sale. Call the office today, and let a REALTORⓇ take care of it!