Primarily many real estate transactions involve two brokerages: Seller's brokerage and Buyer's brokerage. Each of these brokerages is represented by a licensed real estate Agent. So, the real estate commissions that are paid by the Seller are compensating both Realtors® (Seller's Agent and Buyer's Agent). Although, real estate commissions are negotiable the typical often used formula that covers both sides consists of the 7% from the first $100,000 plus 3% from the balance of sale price. Therefore, allocating half of that amount to each respectful Realtor® to be 3.5% from the first $100,000 plus 1.5% from the balance of sale price. For example, if you are selling a house for $450,000 then the total commissions would be $17,500 (where each Agent will earn their half, which is $8,750). It's important to mention that real estate commissions are negotiable and there is nothing wrong if you approach that topic with the Realtor® of YOUR choice. |