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Understanding Commissions
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While most people know that selling a home with a real estate broker is an expensive proposition, many people don't really understand how the commission structure works. This page will help you understand this confusing and expensive system of compensation.
When you list a home with a traditional real estate broker, the listing broker will typically charge you a commission of between 6 and 7% of the sale price. In the event that the broker finds a buyer for your home, they will keep the entire commission. In most cases, however, a completely different broker (the “selling broker”) will be the one to actually find a buyer for your home. When this happens, the commission is shared between the two brokers. Usually the commission is split 60/40, with the listing broker keeping the larger share.
The conventional wisdom in the real estate profession is that listing agents are the ones that make the most money. Not only is their share of the commission larger, but listing a home is less work than selling a home. The listing broker simply advertises your home in the MLS and lets the selling brokers go to work finding a buyer. The selling broker has to spend their time searching for homes, driving around showing them to buyers, and trying to convince people to purchase your home.
With our
Deluxe MLS Plan we eliminate the costly commission that normally gets paid to the listing broker. Instead, you pay a low, one-time listing fee of $495. If you sell your home yourself, you pay no additional fee! If a real estate agent finds a buyer for your home, you pay only a 2.4% commission – far less than you would with a full service broker.
