Commissions 101
Realtor® brokers and their agents offer their services with the intention of receiving compensation for their work. This compensation is usually paid in the form of a commission paid when something occurs. Commissions are usually negotiated as a percentage of the sales price and are paid when a successful closing occurs on the home. Here are some other commission-related considerations:
- Real estate commisions and brokerage fees should be clearly set forth in ther listing agreement;
- Commissions are fully negotiable between the Seller and the listing brokerage;
- There's no such thing as an "industry standard" or "going rate" for commissions. In fact, it's a violation of federal anti-trust laws for real estate brokers to set uniform commission rates;
- The commission agreement is between the Seller and the Listing Brokerage (not the Seller and the listing agent);
- The commission is generally split equally between the listing brokerage (representing the Seller) and the selling brokerage (representing the Buyer). As such, the Seller usually pays the Buyer's agent's commission;
- The commission is usually a percentage of the selling price of the home, but it can be a set dollar amount.
Questions?
For more information call or email ALLEN Realtors®. Or, read more about compensation and other relationships of a typical real estate transaction in the real estate section of the Revised Code of Washington.