Please do a simple slice and dice of how the commission are split between the listing agent and the real estate agent who brings in the buyer. Examples would be great.Also, additionally, what if the buyer has has decided to go with Buyer Agent. How does that affect? Are these fees ever paid for by the buyer?I am a potential buyer in Ca.
In general, the commission is 6%, split evenly between the selling party agent (i.e. listing agent), and buying party agent (i.e. your real estate agent). Both must be licensed.
the amount of commission shared with the buyer's agent is in the listing agreement and is in the mls system. the general public is not aware of the amount. This is something the seller and their agent determine. it is usually 50% of listing commission. I would say at a minimum it is 3%. so a likely scenario is listing commission of 6% and the 2 agents both get 3% at the closing. If you have a buyer agent you just need to make sure the commission they receive from listing broker covers your fee. (e.g. if you agree to 3.5% and listing broker only pays 3% then you owe the difference) This is rare but it can happen. Do not tie yourself down with a buyer agent. Just let them serve you as sub agent of seller or use the listing agent to show you home.
Catherine - On a 6% commission, 3% goes to each broker. The broker then pays the real estate agent his or her agreed upon split, maybe 60/40. So on a $100,000 house, the selling broker gets $3000, and their agent would get $1800 of that. Out of that $1800, the agent must also pay all of their own expenses for advertising, MLS dues, taxes, gas and car maintenance, etc. If you are using a Buyer agent, you will sign an agreement that indicates how he or she will get paid - usually through the regular commission paid by the seller, but sometimes, in the case of a for sale by owner home, the buyer may agree to pay the commission. EDIT - In response to the 2nd part, have your own buyer broker agent show you the house in the first place. Do not have the listing agent show it to you - in many states that is considered procuring cause and your agent could need to go to court to maybe or maybe not receive the commission.
