How much is a typical real estate broker's fee? Is it usually paid by both parties (buyer and seller)?

Answer 1

Here is the simple answer. You end up paying for the broker's fee. The buyer does not pay for anything but the price of the house. But of course, seller normally calculate how much they want to profit so they will adjust the listing price to compensate for the broker's fee. Although in many areas this is not such a good idea because seller are interested in a $$ amount they want to profit and they dont care how much higher they list their home to compensate for the fee. In this case the agent and the seller will have trouble selling.

A typical % for commision is anywhere from 5-6%. Discount brokers will charge 1% or a flat fee but they dont do as much work as the agents that charge the normal fee of 5-6%. There is no preset % on any state because this is called "price fixing" and it's against the law.

I've encounter many sellers that think that if they pay me 4.5% they are saving some money or even 5%. This is the truth about doing it this way. From the 4.5%, I will keep my 2.5% part to cover my cost and the buyer's agent will get 2% or if I get a listing for 5% its 50/50 and the buyer's agent gets 2.5%. What is the difference from the properties listed at 6%????? Well the buyers's agent will have a list of properties that best suit the buyers but they will definitely put the 2.5% & 2% commission listings AT THE BOTTOM of the list. So you actually are loosing a great chance of selling your home.

NOBODY works for free, the fees might sound high but there is a lot involved in selling a home and a lot of legalities that have to be taken care of as well. So if you want to sell your house you have to sell it to the buyer's agent first so he can sell it to the buyers themselves. So in all fairness a good, fast and for top dollar sell will have a total commission of 5% but most likely 6%.

That is my opinion

Answer 2

The TYPICAL fee is anywhere between 5-7%. You can negotiate for less, as a seller, but normally it is going to fall between there. Usually it is 5% on a new home sale and 7% on a resale. The trick is all in negotiation and the market sale. If the house is in a hot market, it will be very easy to negotiate on the lower side. If the agent is going to have to put in more work, then the commission will be on the higher side. The key is, it is USUALLY illegal to have a set fee. It is always negotiable.

Who pays the commission? Ultimately it is the purchaser. Of course when the sale is done, it comes out of the sellers side. However, the price of the house is marked up to compensate for this. You can notice that when a house is being sold by the seller, it house price is usually lower. I hope this helps.

Answer 3

The brokerage fee is determined by the home seller and the brokerage company and when the house sells it's paid by the seller. Depending on the company's prevailing practices and depending on the marketing exposure you want for your home. There are discount realtors that will sell your home for 2% (1% for the listing agent and 1% for the buyer's agent); but this is because they will only post your listing on the internet (Multiple Listing Service) and that's it. They won't do anything else for you. You will have to deal with clients, showings, calls, title company, etc. They won't advertise it in any other way, and probably your home won't sell as fast as you want. Another thing is that realtors that are working with buyers will not be motivated to show your property because it gives a low commission rate.
The total commission is split between the listing agent and the buyer's agent depending on your preference, either 50/50 or 75/25, etc.

Answer 4

Sherman AntiTrust Laws prohibit price fixing and market allocating. There is NO STANDARD COMMISSION RATE. All an agent can tell you is "i charge ___% for this type of transaction". Also, the seller is usually responsible for the commission paid, unless the buyer has made other agreements to pay the commission. In general, you as the buyer are not paying the commission, so buyers should definitely use an agent--it's in their best interest.