How to Save Half of a Realtor's Commission

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