Real Estate Commission is on the Table! That’s right. Let’s open up the discussion! What is the real estate commission? How much should you pay? And what are you getting for the money?!
These are really good questions! And every real estate agent should be able to answer. So here we go:
All real estate commissions are negotiable. It’s the law! But it doesn’t mean that all real estate agents have to change (or negotiate) their commission. Or that you have to use a real estate agent if they charge more than you’re willing to pay. I would suggest to pay what you think the real estate agent is worth: if it doesn’t appear that they are going to do anything (negotiate, marketing, advertising, representation, etc.) for you then maybe you want to pay them a cheaper rate. You get what you pay for, right?
The Westkott Real Estate Team offers a menu of commissions depending on the level of services and/or marketing that is required. The commissions range from 3.5%, 5.5% to 6.0%. Each of these commissions are broken down to show you where the money is going. For example: 6.0% Interactive Marketing plan includes a high-gloss brochure, feature listing placement on national websites, all of the services/advertising from Concept Z – Home & Property and the Westkott Real Estate Team. Part of this commission also includes a 2.5% cooperating brokerage commission which pays for the buyers agent. So let’s break it down: if we listed and sold a property for $100,000 and charged a 6.0% commission then the total commission due would be $6,000. Some of the commission would be paid to the real estate agent working with the buyer ($2,500) and the remaining ($3,500) would be left for the listing agent’s office. Keep in mind, each agent has a fee (a split or a monthly fee) that needs to be paid to their office.
I hope this helps! Remember – all commissions are negotiable. But depending on the marketing, services and experience – not all commissions are worth it!
