There are two ways in which I can serve my clients; as a listing agent when they sell a home and/or as a buyer’s agent when they purchase a home. Here are the costs associated with each.
- Selling a home: when a client wishes to sell a home, the commission is determined prior to listing. On average a realtor’s commission can be around 6% of the total sale price of the home. I have never charged a client the full 6% to sell their home. Whatever the total commission ends up being, it doesn’t all go to the listing agent. The commission is split with an agent that brings a qualified buyer who eventually purchases the house, a buyer’s agent. The vast majority of the time the buyer’s agent commission is going to be set at 3% regardless of what the total commission happens to be, and buyer’s agent commission is advertised on the MLS for buyer’s agent to see. As I mentioned, I have never charged a client the full 6% to sell their home and, if a client is also using me as a buyer’s agent to purchase a home, I am able to provide a substantial discount on the listing commission while still keeping the buyer’s agent commission consistently at 3% in order to attract the most number of buyers. In this scenario, essentially my clients are getting discount agent pricing with the benefits of a full-service agent. On top of that I am able to offer variable rate commissions in the event that an unrepresented buyer comes along and purchases their home. Since this buyer did not have an agent that needs to be compensated I can further discount the commission for additional savings to my clients. Lastly, many brokerages charge a transaction fee to clients ranging from $150-500. Specifically, NextHome charges clients a brokerage fee of $300 per transaction. However, I am usually able pay this fee from my commission on behalf of my clients. Although there are some exceptions including bank-owned properties, auction listings or situations that require me to pay fees or discount my commission beyond what I am generally able to do.
- Buying a home: as outlined above, the seller and listing agent are generally going to compensate the buyer’s agent from the proceeds at the end of a real estate transaction. This means that buyers do not technically need to pay any commissions to be represented by an agent. Although, as mentioned above, many brokerages charge a transaction fee to clients ranging from $150-500. Specifically, NextHome charges clients a brokerage fee of $300 per transaction. However, I am usually able pay this fee from my commission on behalf of my clients. There are some exceptions including bank-owned properties, auction listings or situations that require me to pay fees or discount my commission beyond what I am generally able to do.
If you have any questions related to costs, please contact me.