Understanding the way commission works in a Real Estate transaction can be very helpful to both buyers and sellers, yet it seems to be very much misunderstood. Below are few things to keep in mind.
1. Commission is split into 4 pieces on a transaction, so there is a Buyers Realtor, Buyers Broker, Sellers Realtor and Sellers Broker portion.
2. What commission you chose to put on your home after you are done dividing it up is what you are advertising to the Realtors in the state for a paycheck if they bring you a buyer. (So low commission means less available buyers and consequently many times you get less money in the end)
3. Your agent can assist you in buying and selling any homes that are listed in MLS system and is paid through the transaction. If an agent does not want to place your home in the MLS (unless they have a buyer already) they are severly limiting your exposure.
4. Your agent is trained to help you! It is in your best interest to listen to your agent regarding the transaction. We all want to get the top dollars for our homes when selling, but the home market is constantly changing and the Realtor wants your home to sell too.
About the Author
John Welcome, Re/Max Horizons, 25 years as a custom home builder and over 10 years as a Realtors. http://www.liveinde.com