An Introduction to the Realtor Commission

If you are about to sell your house, you need to have a basic understanding of how Realtor commission works and what you should expect to pay. Here are a few things to consider about Realtor commission.

Standard Commission

If you are going to list your property exclusively with an agent, you are going to sign a listing agreement with her. If that Realtor ends up selling your house on her own, you are going to pay her a full commission. In most areas, this commission is going to be approximately 6 percent of the sale price. 

Split Commission

In most cases, Realtors work in conjunction with one another so that they can sell more houses. If a client working with a buyer's agent ends up purchasing your property, the two real estate agents are going to split the commission. This means that each of them would get 3 percent of the purchase price of the property.

One-Time Commission

In some cases, those that list their properties as "for sale by owner" will agree to a one-time commission with a Realtor. This means that the Realtor can take one of her clients to the property and earn a commission if that client buys the property.

If I sold my home myself after the listing expired, do I owe my Realtor a commission?

If you sell your home after the listing has expired, you should not have to pay your Realtor any commission. The Realtor had the opportunity to sell the home during the listing, and if she did not sell the property, she does not have any right to a commission after the listing has expired. If she was working with a potential buyer during the listing and then that same buyer bought the house after the listing expired, you might give her a commission as if she were a buyer's agent for the party that purchased the house. 

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