Sep
1
Added:
9/1/2010 8:38 AM
Real estate agents get questioned all the time regarding commission a seller has to pay. Most sellers do not understand how much time and money is spent by a real estate agent and their broker. Below is a general idea as to where the commission a seller pays is distributed.
Example -
Sales Price of $150,000 x 6% (example only – no price fixing) =
$9,000.00 total commission
Typical 50/50 split of commission between the listing & selling real estate offices.
Listing Office = $4,500.00
The listing office & listing agent may split the commission 50/50. This depends upon the arrangement between both parties.
Listing Broker = $2,250.00
Advertising & marketing
Paperwork & forms
Legal & accounting fees
Errors & Omissions Insurance
Office maintenance (gas, electric, water, sewer, equipment, rent or mortgage, phones,
property taxes, internet, office staff, landscape maintenance, association dues, insurance, etc)
Listing Agent = $2,250.00
Advertising & marketing
Auto maintenance & insurance & Gas
Supplies & equipment
Board dues & MLS fees
Continuing education
Medical insurance
Personal income taxes
Cell phone
Networking
Time & availability
Selling Office = $4,500.00
The selling office & selling agent may split the commission 50/50. This depends upon the arrangement between both parties.
Selling Broker = $2,250.00
Advertising & marketing
Paperwork & forms
Legal & accounting fees
Errors & Omissions Insurance
Office maintenance (gas, electric, water, sewer, equipment, rent or mortgage, phones,
property taxes, internet, office staff, landscape maintenance, association dues, insurance, etc)
Selling Agent = $2,250.00
Advertising & marketing
Auto maintenance & insurance & gas
Supplies & equipment
Board dues & MLS fees
Continuing education
Medical insurance
Personal income taxes
Cell phone
Networking
Time & availability
This is a general list of expenses a brokerage company and real estate agent may have to pay. Please keep in mind this list is not all inclusive. We hope this gives you a better idea as to the expenses involved in real estate and running a business.
Posted by Joy Watts