Ann Arbor Real Estate Sales Commissions Explained

Real estate agents are paid on a commission basis. More often than not, both buyers and sellers commission are paid from the selling price of the home. Commissions are calculated from the percentage of the sales price of the sold home. Some firms charge a flat rate.The reason for the difference in rates is generally tied to the type of marketing done for the home. If the rate is low, less capital will be placed into marketing the home. If the rate is higher, generally more marketing will be done. This should be worked out clearly before hand with the agent. In essence though, you will often get what you pay for. Commissions are negotiable.

Explanation of Commissions

By using a 6% total commission pie as an example:In general, the buyer’s agent will get 3%, and the listing agent will receive 3%. In greater detail though, the 3% Listing Commission is to be divided between the listing agent and his/her broker, usually at a 50/50 basis. This means the broker gets 1 1/2%, and the listing agent gets 1 1/2%. The 3% Selling Commission paid to the selling agent is to be divided between the selling agent and his/her broker again at a 50/50 basis. The broker gets 1 1/2%, and the selling agent gets 1 1/2%. So each party gets ¼ of the pie.The 3% Listing Commission + the 3% Selling Commission = 6% Total CommissionFor Sale By Owners usually cooperate with an agent to pay the buyer’s agent fee.
Remember that obtaining the buyer is half of the battle in the Ann Arbor Real area; negotiating the deal and making it stick and close on time is an extremely important job of the real estate professional you choose. Ask for their score card – past performance. How many of their listings actually close and how many expired or were withdrawn without ever selling?
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Kathy Toth &Team

http://www.kathytoth.com/