When a realtor finds a buyer for your home, who pays them for the privilege? Both you and the buyer are benefiting so who ensures the realtor is rewarded accordingly? Whether you’re a prospective buyer or seller, now’s the time to find out.
How Realtors Get Paid
Before we move onto understanding who pays your realtor’s fees, it’s worth learning more about how they make their money. In return for marketing your home and handling some of the legal aspects of selling it, your realtor receives a percentage of your home’s sale value. This is referred to as the realtor’s fee. That percentage can vary between states and companies, which is worth considering when you choose who sells your house.
For example, your realtor may charge a 6% realtor fee and then you list and sell your home for $150,000. The realtor would make $9,000 from the sale, which would represent their commission. Because of this, it’s important to find out what fees your realtor charges before using their services. And, while it may seem as though this is a high sum, a proportion of that money will go toward marketing, staff, and overheads.
This realtor fee gets split between your realtor and the buyer’s realtor. Fortunately, you don’t have to worry about negotiating the fee between the two parties. That’s their responsibility.
Who Pays the Realtor Fees?
It may come as no surprise that the person who lists and sells their property is the one who pays the realtor’s fees. From a business perspective, this makes sense and it’s perfectly fair. If you’re the seller, it’s your property that benefits from marketing and the realtor’s expertise. As such, it’s you and your property who receive the selling service, which means you’re the one who pays the fees.
Your realtor will make their fees clear prior to marketing your property. You’ll seal the deal with a contract and your payment is made when the realtor does their job as promised. If you’re a buyer, your role in this process is passive. In the majority of cases, a buyer’s realtor will share the commission the seller’s makes as they often work for the same company. However, this can change if you’re using the services of a buyer’s agent who’s actively seeking property on your behalf.
When planning the sale of your home and dreaming of the returns, always keep the realtor’s fees in mind. While they represent a fair payment system, they will take a small amount out of how much you receive for the sale. On that note, if you’re seeking a realtor who’s adept at helping customers buy and sell homes throughout Durant, Oklahoma, call me.