| How do you hire a full-service realtor and | | | | The way to save at least half of the |
| only pay half a commission? It is always | | | | realtor's commission is to list with a |
| surprising when a homeowner is going to hire | | | | flat-fee broker who will list the property on |
| a realtorÂ(R) to sell his property, | | | | the MLSÂ(R) (Multiple Listing Service) |
| especially when he next complains bitterly | | | | and Realtor.comÂ(R) but who does not show |
| about paying 5% or 6% to someone who he | | | | the property. The buyer for your property |
| believes does little or no work. Usually the | | | | will come from a "buyer's agent" who brings a |
| seller marks up the property to cover the | | | | client to see your home and make an offer. He |
| commission which over-prices the property and | | | | is interested in receiving his usual 50% of |
| the result is it doesn't sell. | | | | the full commission or 3% of the sales price. |
| | | | If you offer a 3% commission to the buyer's |
| Usually, the commission paid to a | | | | agent, you have saved 3% by not having to pay |
| realtorÂ(R) is split equally between | | | | the seller's agent (listing agent)! In the |
| himself and his "broker", who is the licensed | | | | above example of a $20,000 commission, the |
| agent in charge of a particular firm. If the | | | | agent who brings the buyer still gets $10,000 |
| commission on a sale is $20,000, the | | | | but you are saving $10,000. |
| realtorÂ(R) and the broker each get | | | | |
| $10,000. Newer methods of payouts to agents | | | | What if you are unfamiliar with the sales and |
| include paying "desk fees" to the broker in | | | | contracting process and you need help? For |
| exchange for higher payouts. For example, if | | | | the $10,000 commission savings you can hire |
| the agent pays $135/month as a "desk fee" he | | | | an attorney to review any contract and give |
| may be entitled to a 95% commission while an | | | | you advice usually for less than $500 so you |
| agent paying $60/month may only entitled to a | | | | are still ahead $9,500. But better yet, the |
| 70% payout. | | | | attorney can give legal advice that your |
| | | | realtorÂ(R) can not, and you have |
| If the agent doesn't sell the property he | | | | recourse against your lawyer if something |
| listed, but another agent does, the buying | | | | goes wrong. |
| and selling brokers each get half of the | | | | |
| commission and the 3% commissions are again | | | | So to save at least 50% of your commission, |
| split with the agent so he gets 1 1/2 % net. | | | | should you decide to have a realtorÂ(R) |
| So for a $20,000 commission the split looks | | | | sell your house, use a buyer's agent only and |
| like - $5,000 each to the two brokers and | | | | offer him a 2.5% or 3% commission. Another |
| $5,000 each to the two agents. This is a | | | | unique benefit of only paying a buyer's agent |
| simplified summary of the process but | | | | is that if desperation sets in and you need |
| illustrates the payout procedure. If the | | | | to sell quickly, you can increase your payout |
| agents are on a higher payout because of | | | | to the buyer's agent and attract many more |
| their monthly desk fees, their portion of the | | | | buyers than using a seller's agent. The |
| commission is increased and their broker's | | | | highest commission seen in the past year is a |
| portion is reduced proportionally. Industry | | | | 12% commission to buyer's agents for condo |
| statistics show that 95%+ of the time the | | | | units. In the depressed condo market these |
| listing agent does not sell the property! So | | | | days, it is not uncommon to see 10% |
| the real money for a realtor is in getting | | | | commissions to buyer's agents. So if you have |
| the listing and having another | | | | decided to sell your home on the MLS using a |
| realtorÂ(R) sell it. The largest | | | | realtorÂ(R), you can save substantial |
| commission producers in the industry sell | | | | money and sell your home faster by focusing |
| listings and not properties. | | | | on paying only a buyer's agent to sell your |
| | | | home. |