Who Pays the Real Estate Agent in a Home Sale?
One common real estate expense is for the real estate agents of both the seller and the buyer. But, who pays the real estate agent in a home sale? While the answer is a little complex, most of the time the seller pays the agents’ fees.
When buying or selling a house, there’s one thing that’s for certain: there’s a lot of money at play. Houses are big, life-changing investments. Without a doubt, you want to be wise in your decisions to ensure you get the best deal financially. Keep reading to learn more.
How is a Real Estate Agent Paid?
Unlike hourly or salaried jobs, a real estate agent only gets paid when their clients buy or sell a home. This is because real estate agents are paid based on commission. As a result, they are working hard to help you get just what you want and for the best price. Keep in mind, they are not paid until a house is closed on. A real estate agent may be working for a client for months and months before this happens.
The Seller vs. the Buyer
As stated before, most of the time the seller pays the real estate agent commission. However, it is often added into the price of the home. So you could argue the buyer is paying it as an included fee. On rare occasions, who pays the real estate agent’s commission can be negotiated in the sale.
How Much Do They Get Paid?
While it can vary some, the typical real estate commission is 6%. So as an example, if a house is sold for $300,000 the real estate commission would be $18,000. Your real estate agent does not get this amount in full, however.
First, the 6% commission is split between the buyer’s agent and the seller’s agent. Then each agent must payout to their broker, cover real estate agent fees, and many other expenses and membership fees before they can pay themselves.
Is This Fee Worth It?
Absolutely! The fee paid to your real estate agent is certainly not money down the drain. On the contrary, it is money well spent. Your agent spends countless time and money searching, listing, pricing, marketing, negotiating, and SO much more.
Not only are these things taken off your plate, but because an agent is an expert in these areas they are able to do them with excellence. This not only could get your house sold or purchased more quickly, it could also result in saving you money in the process!
At Team French, we are passionate about helping our clients find or market their homes. We are committed to putting our clients first and doing everything we can to help them find their dream home or sell for the best price. We are accessible, trustworthy, and highly skilled real estate agents. If you are looking to buy or sell your home, Team French would love to help! Let us be your guide to Gold Country living. Contact us today to get started!