Whether you’re buying or selling a home, you probably have plenty of questions – even if you’ve been through this process before. If you’re like many people, you’re not sure who pays real estate commissions.
Here’s what you need to know.
Who Pays Real Estate Commissions?
First things first: Most real estate agents only earn money when a deal closes. That means they work on commission – and usually, commissions cost someone 5 to 6 percent of a home’s final sales price.
But if you’re a buyer, you don’t pay for it.
Typically, the seller does.
And there’s something else you need to know: the two real estate agents representing the involved parties (the buyer and the seller) split that percentage. Then, each agent typically pays his or her broker a portion of it, because the broker is the agents’ supervisor.
The seller’s agent then takes the money to repay him- or herself for the marketing costs associated with selling the home. That might include the cost of printing up flyers and postcards, a personalized website, or high-resolution, professional photography. Once the seller’s agent covers all those costs, he or she keeps what’s left.
What is Dual Agency?
Sometimes a real estate agent represents both the seller and the buyer. When this happens, it’s called dual agency – and it means that the real estate agent earns the commissions from each side of the transaction.
Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
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