In real estate transactions, the payment of Realtor fees is typically negotiated and agreed upon between the parties involved. Here are some key points regarding who pays Realtor fees:
- Commission Structure: Real estate commissions are negotiable and can vary between agents, brokerages, and states. The standard commission rate is often around 6 percent of the home’s sale price.
- Paid by the Seller: In most cases, the seller is responsible for paying the Realtor fees. The listing agent, who represents the seller, is entitled to a portion of the commission, and this commission is shared with the buyer’s agent.
- Negotiation: The commission rate is negotiable, and sellers may discuss and agree upon the terms with their chosen Realtor before finalizing the listing agreement.
- Flat Fee or Percentage: While some agents may work for a flat fee, the traditional model involves a percentage of the home sale price. The commission is earned by the Realtor for marketing and facilitating the sale of the property.
- Split Commission: In many cases, the commission is split evenly between the buyer’s agent and the seller’s agent. However, the commission split can be negotiated, and some contracts may stipulate a different distribution.
- Dual Agency: In some situations, a Realtor may represent both the buyer and the seller, known as dual agency. The legality of dual agency varies by state. In states where it is legal, the dual agent may be entitled to the full commission.
It’s important for buyers and sellers to discuss and understand the terms of Realtor fees during the negotiation and listing process. Working with an experienced Realtor, such as The Olear Team, can provide valuable insights and guidance on commission structures and other aspects of the real estate transaction.