What is buyer's agency?
The term agency defines a real estate agent's duties and responsibilities to you. A buyer's agent represents the buyer and his or her best interests. A traditional agent works for the seller and represents the seller's best interests. Your agent will discuss buyer's agency with you. Before you view any property, it is very important to understand how your agent represents you.
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How is a real estate commission divided?
In a typical real estate transaction, the seller pays their agent a commission of about 6% (can range from 5-7%, depending on the area). The commission is then split with the buyer's agent. (Example: 6% listing commission; seller's agent keeps 3% and pays the buyer's agent 3% for finding a buyer.) Each agent is on a commission split with their broker. An experienced agent may be on a 70/30 split (wherein the agent keeps 70% of the 3%, and the company gets the remaining 30% of that 3%). Any other applicable fees, such as advertising, internet fees and referral fees, are paid out of the commission, based on the individual agreement the agent has with his or her firm.
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Can I get a lower commission on the sale of my home?
Real estate commission rates are negotiable, varying according to local custom and the type of property you have to sell. We recommend that you get a marketing plan from the agent(s) whom you are considering in order to make sure that you do not limit the advertising exposure and showings of your home by negotiating a lower commission.
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