When selling your home, you have many choices of REALTORS® and real estate brokerages. Each offer different services and fee models. You owe it to yourself to interview several REALTORS® to understand, not just the commissions/fees being charged to you, but also what services and expertise will be included.
Did you every wonder who gets the commission and administrative/processing fees that you pay when selling your home?
The Listing Agent gets a percentage, the Brokerage they work for gets a percentage; the Buyer’s Agent gets a percentage, and finally their Brokerage gets a percentage.
The percentages of the commission paid to those involved can vary. Typically, buyer’s agent/brokerages will receive 2.5% – 3.0% of the money you pay. Be careful when an agent tells you, “I only charge XX% to LIST your home.” List is the key word. Always ask what they pay the buyer’s agent/brokerage. Sometimes what sounds like a good deal may not be. You need to know what the TOTAL commission is. If they will list your home for 1.75% but charge 3.0% to the buyer’s agent; then your TOTAL commission would actually be 4.75%.
Another fee to be aware of is what is commonly referred to as an Administrative or Processing Fee. This is often a flat rate and is in addition to the commission charged to sellers. You will need to add this fee to the amount you will be paying in commission to determine your total out-of-pocket expense for listing your home. This Administrative and/or Processing Fee can also apply to buyers.
If you list your home with Casa Bella Realty, LLC and if we or the seller’s find a buyer that results in a settlement, and if all parties understand that Casa Bella Realty, LLC represents the seller and everyone is in written agreement to these conditions, we will reduce your total commission to be paid to us to 2.5%