Who pays the Realtor fees?

No matter what your profession, there’s always a question or two that you hear all the time. In the real estate industry, one of the most frequently asked questions is, who pays the Realtor fees?

In most cases, the Realtor’s commission is paid by the individual selling the house. The following information should be helpful in explaining this situation.

Who pays the Realtor fees?

  • First, please note that real estate agents work for a real estate broker, and all fees paid to a Realtor or real estate agent go through the broker.
  • Commissions paid to Realtors are negotiable and therefore they vary from agent to agent, brokerage to brokerage and state to state. The rate of commission is usually around 6 percent.
  • While all real estate commissions are negotiable, you’ll learn that not every agent will negotiate. The best, most experienced Realtors will often charge more than agents who are relatively new to the real estate profession.
  • Your Realtor’s commission must be negotiated before the real estate deal is complete.
  • It’s not unusual for the commission to be split evenly between the buyer’s and the seller’s agent, although a contract can stipulate that one agent will receive a greater commission. 
  • A Realtor earns their commission by working on your behalf and properly marketing your property. This can take many weeks, if not months, of work on your behalf.
  • Some agents will work for a flat fee. However, be certain that, in return, you are not receiving limited representation.
  • While not common, in some cases the Realtor may represent both the buyer and seller. This is called dual agency, and it’s actually illegal in some states. In states where it is legal, a dual agent is entitled to receive the full commission because they are representing both sides during the transaction.

So, who pays the Realtor fees? Usually the property seller, but not always. The best thing to do is to ask an experienced Realtor for their input. Please feel free to contact The Olear Team for more information!

One comment on “Who pays the Realtor fees?”

  • Thanks for these details. The buyer and the seller pay realtor fees that come out of the home sale/equity itself. These professionals provide a service, but it also feels like the whole process is to hide this fact, especially from buyers. I mean, this is a fair characterization, right?

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