2006-11-27 06:19:41 · 12 answers · asked by number_1_nama 1 in Business & Finance ➔ Renting & Real Estate
Depends on the area. Usually 3% and that is split between the agent and broker. The seller agent charges 6 to 7% and splits that with the buyer agent. Remember we are independant contractors and pay all our taxes and Social Security. Alsao, Health Ins. mortgage, taxes and ins. on our homes. Car expenses etc.
2006-11-27 06:24:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I think the laws vary from state to state but "on average" 6% has been the traditional commission for the sale/purchase of a home. It is almost always negotiable and in the past few years the market has been pushing for lower commissions (largely due to the number of new agents entering the field and willing to charge less or unable to charge more). The listing agency usually charges 6% of the sales price. Its easier to use real numbers...lets say a home sold for $500,000. The listing agency takes $30,000. Then, the agency takes about 6% off the top of that ($1,800) then pays half of $28,200 to the buyer's agency (assuming it is a separate buyers agent). Then, both agencies will pay their agents based on the split they have agreed upon. Many new agents have a split of 50/50, meaning the agency would keep $7,050 and pay the agent the same. More experienced agents will have negotiated a more favorable split with the broker, meaning they will get a larger chunk than 50/50.
2006-11-27 08:54:06 · answer #2 · answered by tricanese 3 · 0⤊ 0⤋
6% shared btw selling & lsiting agent. The split can be 50/50 or as agreed per the listing agmt. Most states max out at 6% for residential.
For commercial, the commissions can be as high as 10% and when we are talking about million dollar deals, those commissions really add up, big time........
2006-11-27 06:27:07 · answer #3 · answered by boston857 5 · 0⤊ 0⤋
On average... you pay 6% of your SALE price.
If you have one agency involved -- they get the whole 6%. If you have two agencies involved, each gets 3%.
Of that amount, the real estate agent gets half of what the agencies get. So, let's say your realtor and the buyer's realtor work for two companies (REMAX and Long and Foster)... then:
REMAX: 1.5 %
LONG AND FOSTER: 1.5%
Your realtor: 1.5%
Their realtor: 1.5%
------------------------------
6% total.
2006-11-27 06:25:13 · answer #4 · answered by Sam I AM 3 · 0⤊ 0⤋
It depends on state law as to the max. How ever it can be a negotiated item in the contract. In TN the max is 6%
2006-11-27 06:22:34 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋
I've heard that they get 3%. My boyfriend just bought an apt and that's what his realtor got. Im not sure if the agency gets just a portion of that, but I know that's what he paid. Hope that helps!
2006-11-27 06:24:45 · answer #6 · answered by beachbaby4321 1 · 0⤊ 0⤋
about 3% on each side.
Buyers agent - 3%
Sellers agent - 3%
For a whopping 6% of the total sale.
2006-11-27 06:24:02 · answer #7 · answered by ratdog 3 · 1⤊ 0⤋
99% of the time the make 3 % and the buying agent makes 3 %
but in michigan there is no set precentage.
2006-11-27 06:24:21 · answer #8 · answered by theresajstephens 2 · 0⤊ 0⤋
I just sold a house and the realtor I wanted to use said, "I never sell for less than seven percent." I said, " I never pay more that six percent." He sold for six percent. It IS negotiable, don't let anyone tell you it isn't. .
2006-11-27 06:28:04 · answer #9 · answered by CrankyYankee 6 · 0⤊ 0⤋
this is negotiable but generally between 5-6%
2006-11-27 06:26:37 · answer #10 · answered by Jim7368 3 · 0⤊ 0⤋