Tuesday, March 05, 2019 / by Pamela Glende
Commission is an important topic. I am finding that when I ask clients if they know how commission is split that most don’t.
Here is a breakdown. 6% commission is split 3% to the listing firm and 3% to the selling firm (the agent that brings in the buyer and their brokerage). Then it is split again between the agent and their brokerage.
When you break it down between all 4 parties it’s a lot less than most people think. Many people think that it’s a lot of money to spend when selling a home but I can assure you that after it’s split it’s not.
Commission goes into marketing your home. Thousands of dollars are spent with my brokerage marketing our listings.
We want our listings to be marketed on all the major sites as well as tour factory, craigslist, and Facebook and other social media among other sites.
Hiring a professional photographer is also a “must”. We want those pictures to be the best they can be. Most people now a days are searching online so the pictures need to be fantastic. After all someone across the country or the world may be shopping online for a new home in your area.
There’s also the costs purchasing signs and putting them up and taking them down and equipment such as lock boxes and open house signs.
An agent is worth their commission, and folks should remember that they are only getting a percentage of that 6% after it is divided four ways.
We work hard and spend many hours pulling comps and researching to come up with the correct market value before you list. We give you advise for staging and getting your home ready to list.
- Selling your home with a Team of agents verses a single agent.
- Thinking of selling, what can I do to improve the value of my home?
We also set up appointment for showings, inspectors and appraisers to get into the home. We spend time going over the offers and vetting the buyers through the lenders that they are using to make sure that they are truly qualified.
Has that lender looked at the buyer’s employment history? Have they looked at their debt to income?
Have they looked at two years of their taxes. Have they verified their employment? Has the lender looked at their assets etc?
Is this buyer’s offer a good one to choose? Do we think that there could be potential issues with this buyer and their offer?
A good agent will give their all to protect their seller during the process.
We negotiate the best possible price for your home to net you the most in the sale. We make sure that all parties receive the contract, lenders, title, closing office.
We manage the contract during the entire process and stay in communication with all parties concerned.
You must ask yourself if the agent is welling to give up so easily part of their commission, how easy will they give up on negotiating a great price for you. You want someone who knows their worth and will fight for you when negotiating.
You don’t want an agent that is going to work for both sides (the buyer and the seller). I feel that’s a conflict of interest because it puts the agent right in the middle. How can they negotiate the best price for you the seller and the best price for the buyer at the same time?
You deserve an agent that has your back and is just working just for you. After all that’s what you deserve especially since you are paying the commission. You don’t want an agent that just wants to make a sale.
Thank you for reading and if I can be of assistance don’t hesitate to reach out.
Haven Real Estate Group