How much am I supposed to pay the realestate agent in commission?
If I am selling a house for $35,000 and the buyer is getting a loan for $10,000 more ($45,000), which number should the agent commission fee be based off of? the $35k or $50k?
What regulation would I find this information? When I go back to the agent, I will need to site a good source. Saying I got it off "yahoo answers" doesn’t sound that good.
The commission is 6%, but that’s not really a factor in what I’m asking about in this question.
The commission is always based on the Sale price.
Always look at the agents listing agreement or ask the agent. Sometimes agents split the fee, sometimes the keep the whole fee. Some agents take 7%, some split that 7% with another agent and they each take 3.5%.
And in some cases, You can ask an agent to just not take their commission. I don’t know how but I have heard there are ways around it.
But if they helped sell the property, they should be paid because it’s the right thing to do.
The commission is based on the Sale price, but check with the agent.
February 4th, 2010 at 2:20 am
The commission is always based on the Sale price.
Always look at the agents listing agreement or ask the agent. Sometimes agents split the fee, sometimes the keep the whole fee. Some agents take 7%, some split that 7% with another agent and they each take 3.5%.
And in some cases, You can ask an agent to just not take their commission. I don’t know how but I have heard there are ways around it.
But if they helped sell the property, they should be paid because it’s the right thing to do.
The commission is based on the Sale price, but check with the agent.
References :
February 4th, 2010 at 3:01 am
First, real estate commissions are negotiable and 6% is unusually high today. Commissions are based on the selling price of the house without regard to loans, etc.
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February 4th, 2010 at 3:13 am
The commission is on the sale price only, not the loan amount. It is just common sense. (6% is industry standard, each agent and broker gets 1.5% so this is divided 4 ways).
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NJ RE license in 1994
February 4th, 2010 at 3:52 am
The commission as already stated is based on the price that the house sells for. They get paid on 35k and the commission will be $2100.00 and most likely split four ways. Good possibility that your agent will make $550.00 for all the time and effort he or she put into selling your home. And in this market be glad that they marketed your property well enough to sell it.
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February 4th, 2010 at 4:12 am
Your listing contract has everything you need contained in it. The amount of commission should be stated in a percentage format, and should indicate that the percentage applies to the actual sales price of the property.
Read your listing contract.
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