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Real Estate Fees
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| Why Use a Realtor & How They Work |
As a consumer in the real estate market, you will benefit from services of an experienced Realtor throughout the home buying or selling process.
Realtors® spend most of their time...
- counseling buyers & sellers
- showing homes to buyers
- marketing their current listings
- monitoring transactions from purchase to closing
- previewing homes for buyers & sellers
- holding "Open Houses"
- researching mortgage financing options
- keeping informed of current market trends
- understanding legal issues that affect Real Estate
- continuing professional education
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All of this activity is done with a desire to earn your loyalty and to build a personal reputation for the highest quality professional service available. Without question, the Real Estate business is a people business.
For the most part, people selling the home pay a commission to their listing broker, based on a percentage of the selling price. The listing broker then splits the commission with both the buyer's broker and their respective agents.
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Since Realtors® are self-employed, they receive no salary, company car, expense account, vacation pay, health insurance, retirement, social security benefits, etc. At their own expense, Realtors® also pay for:
- licensing fees
- continuing education courses
- all property advertising
- lock boxes & open house signs
- MLS access fees
- advertising & marketing of their services
- telephones, car phones, paging services, etc.
- postage & courier fees
- business cards, stationary & office supplies
- business insurance & self-employment tax
- personal assistant salary & taxes
- computer hardware & software
- conference & convention expenses
- office space
- membership dues for Industry Associations
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Realtors® are not paid for their efforts until and only after successfully completing a property transaction. Most Realtors® are paid the same regardless of which real estate company is listing the home.
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Realtors® have a contractual agreement with their real estate company which states that they may list and sell real estate as an independent contractor representing the parent company.
At the time of closing, after all the work has been completed to the satisfaction of everyone concerned, the real estate commission is generally paid from the seller's proceeds. In certain circumstances, part of the commission may be paid by the buyer. The commission is then divided between the company / sales associate representing the seller and the company / sales associate representing the buyer.
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