The question is asked frequently, if I use you as my realtor how much do I have to pay you? The answer is, it depends. Are we representing you as a buyer? If yes, you do not pay us anything. We will get paid by the listing broker after the property closes.
Are we selling your property for you? If the answer is yes, you as the seller would sign a listing agreement. Based on the agreement, a percentage (usually around 6%) of the final sale price of the property goes to us. Unless other items such as marketing costs are negotiated into the deal, that should be all that is owed.
If you are getting money back on the sale of your property, the fee is usually taken out of that. If you break even on the sale or even make less than you owe, than a check out of your pocket would be needed to cover the negotiated commission.
A Realtor does not make a penny until the property closes. There are ongoing costs on their end including:
- Advertising and marketing materials for the property
- Signs including standard yard and open house signs
- Lock boxes
- MLS access fees
- Maintaining an office: staff, computers, supplies
- Continuing education courses that are needed to maintain a license
These are just some of the on going expenses that every real estate office has. Just as it is important for you to get your regular paycheck, we expect to get paid every time we successfully perform our job to help maintain our business. Check out our infographic below that takes you through the flow for both buyers and sellers.
As always if you ever have any questions, please give us a call at 612-767-9000 or send us an email. We would love to have an opportunity to discuss your real estate needs.