If you're considering buying or selling a home and curious about how much it will cost to hire an agent - look no further! We'll answer your burning questions and highlight how the commission process works, who gets paid what, and when.
How do Realtors get paid?
Generally, real estate agents are paid by commission when the transaction closes - typically a percentage of the sales price. They don't usually receive hourly or flat fees for their work. You won't need to worry about writing a check to your agent - their payment is disbursed by whatever entity handles escrow, usually a title company.
Who pays the commission?
In most real estate transactions, the listing agent negotiates commission with their seller clients as part of the listing agreement. There is no set percentage rate, but it's common to see 5-6% commissions on most residential home sales.
This commission gets split between the buyer's and seller's agents at closing unless the listing agent handles both sides of the sale. In Texas, this is an intermediary relationship and must be disclosed to both parties in writing.
What does commission cover?
An agent's commission compensates them for a wide range of services - everything from the time, mileage, and fuel for showings to writing and submitting offers. Your agent will negotiate the terms of your sale and manage transaction timelines and crucial deadlines by coordinating with various parties involved, including inspectors, vendors, appraisers, lenders, and the title company.
If you're a seller, this fee covers all marketing and advertising for your property. It includes print items, staging, professional photography, yard signs, open houses, and social media advertisements. Your agent will coordinate showings and get feedback from other agents. They will also handle complicated technical aspects like paperwork and field communication so you don't spend all day answering questions.
Agents are also invaluable when troubleshooting problems as they arise, mainly because a good, experienced agent can anticipate common issues and get ahead of them before they happen.
Buying or selling, it pays to hire an agent. According to the National Association of Realtors, "The typical FSBO home sold for $225,000 compared to $330,000 for agent-assisted home sales." That will definitely cover the commission check with plenty left over!
For buyers, you can't put a price on having a personal advocate and guide throughout the purchase process - but if you did, it'd be free! Buyer's agents are paid from the listing agent's commission but legally obligated to act in your best interest, so it's a win-win.
Ready to buy, sell, or invest in 2023? Central Texas has plenty to offer, and so do we here at Duck Brothers Real Estate! Our agents combine detailed local market knowledge with negotiating expertise and first-rate customer service to make your transaction convenient and stress-free. Call 254-613-6326 or visit our website at www.duckbrothersrealestate.com.