2007-03-26 14:30:52 · 6 answers · asked by MJ 2 in Business & Finance ➔ Renting & Real Estate
Sold price minus seller concessions (closing cost, inspection repair.)
Home sells for 205k, but the seller is paying 5k towards closing costs. The Realtor charges 6% of 200k, not the 205k.
Hope this helps,
RE Agent,
Remax
2007-03-27 05:27:04 · answer #1 · answered by frankie b 5 · 0⤊ 0⤋
The end sales price determines what the commission is based upon. Whether the seller makes a profit or not is not considered in the commission. Should a seller take a loss on a property the commission is still the same. Most experienced agent's will always make sure their commission will be covered before advising a seller to accept a low offer. The commission is not a set in stone 6%, it is negotiated before the listing agreement is signed. 7% is what most agents used to shoot for and years ago a 7/3.5 was offered to make the commission appear like a great deal. It was 7% on the first 100K and 3.5 % on the remainder. The median house price then was 145K the total commission would be $10,150.00 The same house at 6% would be $8,700.00 commission Agents duped many sellers into the split rate because they thought it was less as the 3.5 % sounded more appealing on the remainder. At todays prices 7% on the first 100K and 3.5% on the remainder would actually be a better deal for a seller than a straight 6%.
The person below me needs a new broker, I have always received at least an 80% split with no desk fee. 50% is a rip off.
2007-03-26 14:41:31 · answer #2 · answered by Myron 4 · 2⤊ 0⤋
I just sold my house a month ago, and the 6% is based on the sell price, not profit. I had to pay my agent 16k and took up most of my equity. If your house is worth more than 100k, you can negotiate a lower percentage on the overage, like 4%.
2007-03-26 14:40:10 · answer #3 · answered by Dwayne H 2 · 0⤊ 0⤋
It is on the sales price.
Keep in mind that the agent splits that (typically) with the buyers agent....and each of those agents pay their broker 50% of their amount made (1.5% of sales price).....so in the end the agent who sells the home, if its is based on 6%, really only gets 1.5% themselves. They pay for all advertising and fees to belong to the MLS out of their own pockets as well, and income tax on that.
2007-03-26 14:46:59 · answer #4 · answered by freckles2079 2 · 1⤊ 0⤋
the agent gets paid on the sale price of the house, and if the buyer has his own agent they have to split it in half
2007-03-26 15:13:15 · answer #5 · answered by josephcodner 2 · 0⤊ 0⤋
The commission is paid based on the sales price of the house.
2007-03-26 14:34:30 · answer #6 · answered by dazed&confused 3 · 2⤊ 0⤋