It can be helpful to have the knowledge of an experienced broker for both buyers and sellers. But who is paying for the service of the agent? You might be considering hiring a real estate agent if you’re about to start your home search, and rightfully so. Buyers and sellers have different financial responsibilities when it comes to the different fees associated with buying and selling a home and a real estate agent can help you figure out who pays what. Keep reading to learn more about fees and just how much you can expect to pay your real estate agent. Click this link to read the full article.
Who pays the real estate agent?
Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer’s agent, according to Ruth Johnson, a Realtor® in Austin, TX. But she also points out that “while sellers pay the fees, they usually wrap them into the price of the home.” In that sense, you could say the buyer pays the fees. “It totally depends on how you look at the situation,” she says. Fair point!
How much are real estate agent fees?
A common commission for real estate agents is 6% of the purchase price of the property. The fee is paid at closing by the seller, unless some other arrangement has been made.
All of the details about a real estate agent’s fee should be in the agreement you sign when you hire an agent—don’t be afraid to ask questions if there’s anything you don’t understand.
Generally, things like photography, the cost of listing the property, and the cost of any printed materials or signs are included in the fee, along with the real estate agent’s services, of course. If you have to do major staging or repair work, those costs will come out of your pocket.
Can you negotiate real estate agent fees?
A seller can negotiate the terms of the listing agreement—which contains the real estate agent fees—with the brokerage or agent.
If a buyer is in a tough seller’s market or bidding war, offering to pay some or all of the real estate agent’s fees can be a way to stand out from other offers. In fact, even though the buyer usually pays most of the closing costs, they are up for negotiation, too. That’s one of the many things a good agent will do for a buyer—make sure you get the sweetest deal possible.