MAGIC MINUTE - What Should A Real Estate Agents Commission Be?
BRAND NEW – MAGIC MINUTE – What Should A Real Estate Agents Commission Be?
Commission really is the backbone of the Real Estate industry.
With that said, all sorts of questions usually come to mind, like who should pay who and how much?
Here’s a breakdown of the traditional method in California:
The seller ALWAYS pays all of the commission, which is typically 6% or 5%. I’m happy with 5%, but that varies a little. Also, if a listing agent represents both the seller and the buyer it goes down a tad to about 4%.
Why don’t buyers pay commission? Well, ultimately they always do when they end up SELLING their property.
This method is a way to entice new buyers into the market. It’s not really feasible with all the expenses of getting a loan, putting money down, etc., for the buyer to also pay the commission. It becomes financially impossible for many.
I hope this answers some of your commission concerns!
Thanks for watching and being part of the rebellion