Are Real Estate Agents Free?
Yes and no is the answer that question. I’m sure you’re asking yourself can I be any more vague than that? It’s not on purpose but it changes depending on which side of the fence you’re standing on.
If you’re homebuyer, I as your real estate agent work for you for free because I get paid by the seller. When the seller lists their home for sale part of the commission that they’re paying out to sell their home gets paid to the buyer’s agent along with their broker. In this situation my broker is Coldwell Banker Burnet. There is however a broker admin commission that’s part of your closing costs as a buyer. Almost every single brokerage charges this fee and that goes directly to the broker. In the case of Coldwell Banker Burnet, the brokerage admin commission is $495.
If you’re a home seller, my services are not free. Agents will list your home for a percentage and will divvy that up between themselves, their broker as well as the buyer’s agent and their broker. Typically, on a 6% listing, 3.3% of the sale stays with the listing agent you’ve chosen and their brokerage. They will then divide that up. This is before all of my costs for signs, marketing material, photography, office space, taxes and every other thing you can imagine in running a business. The remaining 2.7% will then be paid out at closing to the buyer’s agent in their broker. They will then divide that fee between them.
Before you make a decision on purchasing or selling a home understand the real estate agent’s role who will be helping you with your needs. It’s always good to sit down with more than one real estate agent to discuss what they will do for you and how they will represent you.
Tom Sommers Coldwell Banker Burnet 952-994-7204
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