When you hire a professional real estate agent to help you buy, sell, or rent a house they get paid with a real estate commission. The following will help you generally understand who pays, to how much, to were the money goes…
What Is a Fair Commission for a Real Estate Agent?
The typical real estate commission fee averages about 5 to 6 percent of the home’s sales price. The real estate agent does not work on an hourly or weekly fee. As a buyer, your agent and the seller’s agent split a commission fee. And while this fee is technically paid by the seller, it’s factored into the cost of the seller’s home cost. Commission standards can vary from state to state and among brokerages. there are no federal or state laws that set commission fees, meaning commissions are negotiable. Another thing to consider is it is never wise for the buyer and seller to have the same real estate agent. The agent should be looking out for your interest so it is best if each the buyer and seller have their own agent.
What Are the Duties of Your Real Estate Agent?
A real estate agent helps his or her clients purchase, rent, or sell properties. They advise clients about market conditions, conduct walkthroughs, and provide guidance and assistance through the process of buying, selling, or leasing properties. A licensed real estate agent connects buyers and sellers for transactions and represents them in legal negotiations from the beginning of the process until the closing. A real state agent will help you get top dollar for your home, put out fires, and alleviate stress that comes with selling a home. A recent survey found that the typical “for sale by owner” home sold for $190,000, compared with $249,000 with a real estate agent according to the National Association of Realtors.
What is a listing agreement?
A “listing agreement” is a contract between a real estate agent (the agent who will be listing the property for sale) and the home seller. It primarily says that the agent has the right to list (advertise and handle the sale of) the house. If you’ll be selling, it’s important to understand the terms of this agreement, because you’ll be bound by them. It will list all the details about an agents commission. While a listing agreement is advantageous for the agent, because it obligates you to work with that agent for a minimum amount of time, it also protects you by explaining the agent’s responsibilities and what to do if he or she doesn’t meet them. Of course, before you sign any legal document, please make sure you read the agreement and understand the terms. And you need to understand what the terms of the arrangement are between you and the broker you are working with.
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About The Real Estate Company
Residential and Multi-family Realty Services for Lexington, Richmond, and Surrounding Areas. We close over 40 million in sales each year. Our love for Central Kentucky and our clients is the key to our success. We provide careful guidance, persistence, and savvy marketing to deliver results for our clients time after time.
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