Real estate agents earn their living on sales commissions and sales commissions only. When you list your house with a Broker (in our case The RE/MAX Realty Centre) the agent (that's us) will establish a fee for the service they offer. That fee is usually a percent of the final sales price. In return for that fee the agent provides service. That service is wide ranging and will be explained by the agent when they ask you to sign the listing agreement. In general however, the take care of the marketing of your home and ensuring all goes smoothly and that both parties get to the settlement table.
Real estate transactions have become increasingly complex and in our society buyers and sellers have become increasingly litigious. An agent is trained in everything from dealing with lead paint issues to how to navigate a "1031 exchange." Contracts with all the attached addenda and jurisdictional agreements often run 50 to 70 pages.
Real estate agents are also trained in how to market your property and pay for that out of the commissions they earn.
Commissions generally split evenly between the listing agent and the buyer's agent.
The question always comes up.are commissions negotiable? In general the answer is yes, although some brokers can put limits on the practice. When discussing commissions remember you get what you pay for. a full 6% commission will motivate the listing agent and the buyer's agent. This will yield a quicker sale and in the long run save you money.
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