Real Estate Agent Commissions

When you hire a real estate agent to sell your home they are going to take a cut of the final selling price; this is called a commission. Anytime you hire a real estate agent you should expect that this is going to be a stipulation. After all, real estate agents work on commission only.

Since real estate agents make their living on the commissions that they receive, they will be working as hard as they can to sell your home for top dollar. The more that they can sell your home for, the bigger their check will be in the end.

Know the Commission Structure

Before you hire a real estate agent it is very important that you how the commission structure is set up. If you do not know this you may be very surprised in the end when you have to give up some of your money to your real estate agent. In 99 percent of cases, the commission structure will be outlined in the contract that you sign with your real estate agent. Just make sure that you are willing to work with the commission that is being charged. If you are a bit skeptical about it, make sure that you continue to shop around. It is good to know that not every real estate agent charges the same commission. Generally speaking, the larger agencies charge higher commissions. But the only way that you can figure this out is to shop around, and speak with several different agencies.

Commission Payout

You will want to know when and how you will pay your real estate agent their commission on the sale. Again, this is something that should be detailed in the contract that both parties sign. Make sure that it is perfectly clear that you do not owe the real estate agent any commission unless the home is sold. For the most part, you will pay your real estate agent at the time when you receive the money for your home. In most cases, they will take the money right from the amount that you receive so that you do not have to cut a separate check.

Skip the Commission

If you do not want to pay a commission to a real estate agent your only option is to sell your home by owner. The majority of people that sell on their own do so because they do not want to pay a large commission to a real estate agent. This is a viable option, but one that will change the entire process for you.

In the world of real estate, commission is a term that is heard a lot. If you are going to be hiring a real estate agent to help sell your home, make sure that you know everything about the commission structure that is outlined in your contract.