If you’re planning to buy or sell a home, then you’ll need the help of a real estate agent. In exchange for their services, agents typically earn a fee that’s calculated as a percentage of the sales price of the property. The percentage is known as the real estate commission. For decades, detractors have predicted that real estate commissions would go the way of stockbrokerage fees and travel agency fees, but they have remained stubbornly resilient. The truth is that many disruptive efforts have been launched to reduce or eliminate real estate commissions, but none have had much of an impact.
How Much Is the Typical NYC Real Estate Commission?
In most cases, the home seller pays a real estate commission of 6% of the sales price of the property. This money is typically split between the listing and buyer agents. The exact percentage of the commission that each agent receives varies, but in general the amount is determined by the agreement between the agent and the client. Read more https://www.acompanythatbuyshouses.com/
The rest of the real estate commission is used by the broker to cover costs such as advertising and signage, office expenses, and compensation for other company employees, including administrative assistants and marketing managers. In some cases, the brokerage will also keep a portion of the commission in order to pay for the agent’s license and other recurring fees, such as continuing education.
Most sellers understand that they need to factor in their real estate agent’s commission when deciding on an asking price for the property. The same is true of buyers, who may want to consider the cost of a real estate commission when determining their offer for a property.
While there are certainly instances where skipping real estate commission can work, the reality is that most homebuyers and sellers engage the services of a real estate agent or broker to represent them during a transaction. Real estate is a complicated business, and the expertise and knowledge of a real estate professional are invaluable when it comes to buying or selling a home.
Moreover, real estate is a highly competitive industry and the reputation of an agent or broker can make or break a sale. As such, it’s often best to hire a reputable, experienced agent rather than trying to save on commission by working with an unknown, inexperienced individual or attempting to cut out the middleman altogether.
If you’re looking to reduce or eliminate traditional NYC real estate commission when selling your home, Hauseit offers a flat-fee MLS listing service that can save you up to 6% in brokers’ commissions. To learn more about how Hauseit can help you avoid paying a high broker commission, contact us today! Our team of experts are happy to answer any questions you might have.