what does real estate commission cover

Best answer

A real estate commission is a professional service fee charged by a real estate agent for the purchase or sale of a home. The fee covers thesuccessful transfer of real property from one party to another. Most commonly,the fee is a pre-negotiated percentage of the property selling price and is paid to the listing broker from the seller.

People also ask

  • What does the average real estate agent commission cover?

  • The average real estate agent commission covers a wide range of services an agent provides during a home sale.

  • Who pays the real estate commission when buying a house?

  • In the simplest terms, the home seller pays the real estate commission for both their listing agent and the buyer agent. That means if you are purchasing a home, you do not pay an agent real estate commission but you may still be responsible for closing costs.

  • Can a real estate agent lower their commission?

  • Some agents will also lower their commission fees if they are representing both the buyer and the seller in a home sale (also known as dual agency; see below). Keep in mind that a lower commission is not necessarily the best option.

  • How do you calculate Commission on a house sale?

  • In almost all cases, a real estate commission isn a set fee payment, but a percentage of the total sales price of the home. To calculate the total real estate commission, follow this simple formula: Divide the real estate commission percentage by 100. Multiply this number by the purchase price to get the gross commission.

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