Who Pays The Real Estate Agent’s Commission?

Without the correct representation, the closing process can be overwhelming. There are stacks of pages with “sign here” notes pasted throughout, itemized lists, mortgage breakdowns. There is a general question, and it even gets asked by people who have bought and sold homes before. When you don’t have a great attorney who is there to assist and answer your questions, you may walk away from the closing table not knowing who paid the realtors—or how much they were paid.

In a typical real estate transaction, the seller will pay the fees connected with both real estate agents (one for the buyer and one for the seller). You have everything to gain and nothing to lose by working with a real estate agent as a buyer. Choose an agent who is familiar with the market you want to buy in. Many realtors work in the areas they live in and even grew up in. In addition to guiding you through the homebuying process, they can offer tremendous insight.

The Seller

The discovery of who pays for the commission may not be as welcomed if you are the seller. Depending on where the home is being sold, you can expect to pay, on average, 6% of the sale price. That percentage is meant for general planning purposes to give you a better idea of how much money realtors receive for their roles. When there are two realtors, the commission gets split.

Perhaps you have seen a sign that says, “For Sale By Owner.” If that is in front of someone’s house, stating they are selling without the assistance of a realtor. Will the seller still pay your realtor? The seller is still on the hook to pay the commission. However, it is improbable that they would pay out the same percentage had there been two agents.

Can’t I Negotiate Closing Costs?

Some, but not all, closing costs are negotiable. But the biggest takeaway here is that closing costs and real estate agents’ commissions are separate. Closing costs are precisely that—costs you need to account for and pay upon closing. Commission fees get taken out of the final sale price of your home.

Thomas & Webber Law At The Lake

If you are buying or selling a home, contact Thomas & Webber Law At The Lake. Our goals are to protect your interests, keep you informed, and make your real estate transaction an enjoyable one.