Selling Agent Commission

Any person planning to purchase a house may wonder and even worry about how much commission would the selling agent charge. The sum after all, is not small. The real estate market intermediaries or realtors are broadly classified into two categories, namely, the real estate brokers and real estate agents. The real estate brokers are licensed by the state governments to operate as brokers in the real estate market. The licensing is provided to these brokers by the Department of Housing and Real Estate or by the Department of Licenses of the state government. The real estate brokers in some cases, also form their firms or partnerships. The brokers further employ real estate agents who do the job of actually aiding the purchase or sale of the real estate on the behalf of their clients. The standard real estate agent commission is 6% on the purchase and sale of real estate. However in some cases, lower commission such as 5.4% or 5.5%, is also charged.

Commission of the Selling Agent

Real estate agents are further classified into two types, namely, selling agents and listing agents, the selling agents are often known as the buyer's agents and do the job of finding appropriate property for the client, who wants to purchase real estate. The listing agent on the other hand, does the job of selling off the real estate on behalf of the client who wants to sell.

Now the real estate market of the modern times is accessible through the intermediaries, namely, the agents and brokers. In the United States, agents and brokers use a common Multiple Listing Service to find or sell property. All members of the National Association of Realtors (NAR) have access to the system. In such a network, the listing agents put up the houses that are to be sold, and the selling agents hunt for such listed properties that match the requirements of their clients. Alternatively, the selling agent approaches some of the known listing agents that they know with specifications that have been provided by the client. In such a case, the standard commission that is charged by both the selling and also the listing agent is 3% and 3% respectively. The closing cost of 6% is imposed upon the agreed cost of the house by the agents which is then split into two equal parts.

When is Selling Agent Commission not Charged?

Well, the frank answer is that a person can negotiate under very less circumstances, one being that the initiation through completion of the transaction was done without the agent. Probably the only circumstance where one can completely get off without paying the commission. In cases where you have not used an agent to find the property, then again, you do not have to pay the 3%. The listing agent on the other hand will charge his 3%.

Thus, if you are planning to buy or sell a real estate, not getting an agent will save you quite some money. Apart from that, you can consult your regular lawyer for advise and recommendations. After all, your lawyer is not going to charge you 3% of your real estate.