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A realtor typically charges a percentage of the selling price of your home to list the home, market the property, and advise you during the sale and closing process. You can shop around for price, but in most communities every realtor charges about the same amount - usually 5-7% of the selling price. This may seem steep at first glance, especially in these times when half million dollar homes are commonplace. But chances are, your realtor isn't walking away from the sale with the entire commission in her pocket. Here's how it works: You pay the listing broker (your realtor) the agreed-upon percentage. If another broker brought the buyer to the transaction, the fee is split between the two brokers. Then each realtor has to split their commission with their agency. The agency gets a share (often 50%) of each commission in return for supplying the broker with office space, and marketing and administrative support.
Realtor fees below 5% are common, but rarely advertised. Here are two ways to get below the 5% mark:
1. If a prospective agent is kicking up 50% to a broker, he/she has very little room to reduce their own fee. Continue shopping around for an agent who has a more favorable split with their broker (i.e. 85/15) and is in a better position to negotiate with you.
2. Consider passing on expensive services that rarely sell homes such as newspaper advertisements and open houses.
on a 460000 house listed thru coldwell banker what is the best fee i could negoitate
Are realtor fees part of what is called closing costs?
|Sheri Ann Richerson|