are real estate agent fees negotiable
To encourage agents to do this at least 50 % of the commission is paid to the buyer’s agent. – The balance is paid to the listing agent (who works for you, the seller). 30% – 50% of the listing agent’s cut is paid to the agent’s broker as part of the office ‘split’. This covers the Broker’s overhead expenses. In other words, if you go too cheap on a commission, you may get what you pay for -- or even less.Also realize that a sizable chunk of agents are working for brokerage houses and can't cut their fees without permission, and sometimes penalty. If you have found that agent, then be prepared to pay the full commission amount. However, as I said above, you have the right to ask the question. Melanie Atkinson is a Realtor® with Coldwell Banker Residential Real Estate in Tampa, FL. In fact, all real estate fees are negotiable. Real estate commissions, which are typically split between the buyer's agent and listing agent, have dropped in recent years from the old standard of nearly 6 percent to a national average of just under 5 percent, surveys and agent polls indicate. Typically, when you get too much below the 5-percent commission mark, agent motivation tends to diminish sharply unless you are selling a desirable higher-priced home. In some of the toughest markets, sellers are actually offering bonuses to agents if they can scare up a buyer in a set time. If you really think your sale will be a walk in the park, consider adding a stipulation to the listing-agent contract that would lower the agent commission if the house sells before paid advertising is used, or if multiple offers arrive in the first few weeks. Whatever you do, be sure to ask the agent who he or she feels is the target buyer for your house and how and when the marketing will be done. Then get that plan in writing. Also, be sure to do a Better Business Bureau search on the agent or agency as part of your hiring process. A: Yes, the commission is always negotiable, but understand a REALTOR’s® compensation is 100% commission based and they do not receive any pay for the work they do until a sale is made and escrow is closed. Commission is the fee paid to a real estate agent for selling your property. Surprisingly, rates vary a lot from state to state. For example, the average Tasmanian pays $6,000 more in commission than the average South Australian resident on a $500,000 sale. You can find and research real estate commission rates in your state in detail, Real Estate Agent Fees and Commission section of our blog. Australia’s highest commission rates are in Tasmania (3.26%) and the lowest are in South Australia (2.07%), with a national average sitting pretty at 2.22%. Commissions are calculated as a percentage of the property sale price. For example, on a $500,000 property at 2.11% commission, the commission would be $10,541, calculated as follows: 500,000 x 2.11% = $10,541.
Yes