Realtor Fees : What You Need To Know
An important part of the negotiation between you and your realtor are the fees. It’s important to understand how the process works and what the realtor is getting out of the situation. There are a lot of factors involved selling a home so results may vary. Do a little research on your realtor and find out how much leniency is involved to improve the situation for you.
Here are 5 things to keep in mind about how realtor fees work before you sign the contract with your realtor.
- Realtor fees are commonly between 5-7% of the price of the home, but they don’t usually get to pocket the full fee.
- If another broker brings in the buyer then they get half of the fee and the other realtor gets the other half. For example if you have a 6% fee, 3% will go to your realtor and the other 3% goes the other broker that brought the buyer in.
- On the other hand if the realtor brings in the buyer themselves then they will get the full fee minus what they owe their company. Unless of course they work individually.
- Depending on the company the realtor works for, up to half of their earned fee will go to their agency. This percentage varies between companies.
- The fee can be negotiated depending the situation. If your realtor brings in the buyer they a negotiation to lower the fee is more likely to work.
