What is the average amount of profit a realter makes from the closing costs?

Question

I hear that 5 or 6 % of the price of the home is the closing costs. But I hear that most of it goes to the realter not towards what it actually costs to close a deal on a home. Is that true and how much to they get?

Answer 1

OK, Realtors commission is payed by the seller of the home and can range from 4-6%(all companys have different commissions). This is spilt between 2 Realestate agents 50/50 then the agents must split it between their brokers and themselfs. Then since they are independent contractors of the state they will have to pay 35-38% to the goverment. After board dues, advertising, gas for their car etc etc etc. what they receive is very little. You have to sell quite a few houses to make some headway. Now when you sell a house you are responsible for taxes and revenue stamp and title insurance. The realtor gets nothing from that. As a buyer you are responsible for closing costs such as inspection reports, title insurance, flood inspections, filing fee, etc.. The Realtors get nothing of that either. The only time the Realtors make monies is on the sellers offered out commision. Oh yea did I mention I am a Realtor. Hope fully this answered your question.

Answer 2

Realtor commissions and Closing Costs are different expenses. The seller usually pays 100% of the Realtor commissions. say at 6% commission; the listing agent gets 3% and the buyers agebt collect 3% - ALL coming from the sellers side of the proceeds. Additionally, the seller has some closing costs to pay, title policy and prerated taxes. Closing costs are generally TITLE charges and range 1-2% of the sales price.

Hope this helps

Answer 3

There is no way to know. Commissions typically are 6% split by 2 realtors but it's always negotiable. When the market is slow like now the percentage goes up and when it's hot like 3 years ago the percentage goes down. In any case the commission is part of the closing costs of selling a home but it is separate from the other costs.

Answer 4

The Realtors get 6% of the sales price ( 3 % each if 2 of them are involved - buyer's & seller's agents )
The closing costs are extra , on top of that and vary by state and lender .

Answer 5

Realtors get NOTHING from closing costs, other than the sales commission agreed upon by the person who listed the house for sale. If you consider a real estate fee a 'closing cost', that's your call. I don't.

Answer 6

We get a fee for selling the house, but we do not get a penny from closing costs. These are lender and lawyer fees. Plus any prepaid taxes or insurance. Nothing comes to us, although I wish it did.

Answer 7

false, false, false!!! The seller pays the realtor fees. It is usually about 5-7% of the sales price. " Closing costs " for the buyer are what the lender charges you for underwriting, apprasal fees, surveys, inspections, etc.

Answer 8

6-8%

Answer 9

we just sold our house in Wisconsin and our realator made 6 percent on our house.