Commission of Real Estate Agent
Most of the people don’t know about the meaning of the commission which a real estate agent get, when you decide to sell your house or plan to buy the house you hire an agent for the work you look for the buyer and seller of the house and when they finalize the deal with you then you pay some amount of fee to them that is called as commission on the sale.
Many of the sellers are concerned about the commission which paid to an agent; the commission is according to the sale price of the house. A real estate agent is expertise about the cost of the commission they want to get from the seller.
Nowadays commission of the agent is based on the sale of the house which is averaged up to 5 percent of the cost of the house at the price of the sale. Most of the time commission amount is split between the seller real estate agent and buying real estate agent which have devoted the time and resources so that sale could happen. If you are buying a house you can add commission cost in your legal document by fixing it.
The rate of the commission changes as sometimes it gets higher and sometimes it is lower, all this happen because of the location of the house and the type of property you were selling or want to buy. You will find some realtors you take flat fee instead of the commission, realtors who give a discount on the flat fee or in the commission it means they have limited service.
Some of the agents make a legal document in which they mention about the commission which is signed by the agent and the seller, in the agreement they listed about the facilities and service provide by the agent to their seller and also mention about the terms of the commission. You can negotiate with the terms and commission price but some agent not like to negotiate but sometimes they did for winning your business.
Pays of the commission
The most common is that the seller pays the commission to the agent once the sale got finalized. The commission can be directly taken by the sellers and the cost was according to the price of the property.
The commission is directly paid to the real estate brokerage that employs another agent for buyer and sellers. Then this brokerage pays each agent some amount of the commission and keeps the remaining amount by them. If you are not able to occur any sale you will also not get any commission.
When you sign an agreement with the agent you should know about the commission you are getting in exchange, as agents pay their most of the time and resources for completing the sale and offering variety. So, choose 100 commission real estate broker and avail benefits of the same.