How Does My Realtor Get Paid?
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So you have decided sell your house or perhaps you are in the market to buy your first home in Miami and you want to enlist the services of a professional to help guide you through the process. However, not being an experienced buyer or seller you may have questions as to who pays the realtor and how much?
In this blog, we are going to dive in to the specifics of who pays what and how much commission should be paid if you are the buyer or seller. You might be surprised on what you will learn from this blog.
How Much Does the Realtor Get Paid When I Sell my House?
Ok, so you have made the big decision to put your house on the market with a realtor you have interviewed and trust. At this point, you should have a listing agreement in place which outlines your rights as the seller, your relationship with the broker/agent, and the brokers fiduciary duty to you the seller. You should also have noticed the clause outlining the commission schedule you are willing to pay the broker should they successfully identify the buyer and close the deal.
Here in Miami, the average commission percentage most residential brokers charge is a 6% commission fee. Remember this number is not set in stone and is always negotiable on a case-by-case basis. Also, take note that this 6% fee is not what your agent will take home. Depending on the terms of your contract most brokers must pay a cooperating brokers fee of 3% to the buyers agent.Your listing agent listed the home and the buyers agent brought you the buyer thus should be entitled to half of the commission. Lets say you successfully close on your home and you have signed all the closing docs you may be wondering when does the money transfer and when do the realtors get paid after closing. It all happens simultaneously when the designated closing attorney (or escrow officer) closes and balances out the file. It's a pretty quick process.
How Does my Realtor Get Paid When I Buy a House?
This is a very important topic that I want to stress to anyone looking to buy a home, THE SELLER PAYS YOUR AGENTS COMMISSION. So, please utilize the expertise of your agent as it's literally free professional advice and we love to educated our clients.
As I mentioned above, your agent is working to earn their share of the sellers agreed upon commission rate. Also, another question I have received from my clients is do you pay a realtor to show you houses and the answer is NO. Realtors put in a lot of unpaid hours, time, and money in an effort to provide you with the best service and representation possible. So, if you are wondering how does my realtor get paid or even how much does the realtor get paid when you buy or sell your house just know that it usually falls in the hands of the seller and the listing broker to pay commission.
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