Home Selling in Wheeling>Question Details

Harold Snyder, Home Buyer in 26059

what is the realtors commission on a $220,000 home?

Asked by Harold Snyder, 26059 Wed Dec 3, 2008

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Noah Seidenberg’s answer
The commission is agreed upon between the broker and the seller to get their house listed. In Illinois, most often the buyer never has to pay a Realtor, which is why it's great to have an agent to represent your interests free of charge.
0 votes Thank Flag Link Tue Dec 16, 2008
Most homeowners aren't aware of the fact that if owe more on your home than it is currently worth and you need to sell due to financial hardhip, most times your mortgage company will pay comissions, closing costs, and any short fall on the mortgage. Of course there are many details...If you have a true hardship, and can show this with documentation..speak with your local REALTOR specializing in short sales. Feel free to contact me if you need a name. Best of luck to you!
0 votes Thank Flag Link Sun Dec 7, 2008
Hi Harold,

The commission structure is negotiated by the seller and the listing agent and as a result leaves no responsibility to the buyer.

Today's commission rates generally are in the range of between 5 to 8 percent of the selling price. For the most part the normal rate id in the area of 6%.So if you the home were to sell for $200,000 at a 6& fee for professional services the amount due would be $12,000.

To take this a step further, this amount is split 50/50 between the listing agent and selling agent. Then each agent's broker gets a percentage. there's E & O Insurance, franchise fees, advertising, etc. etc. By the time each agent figures in their expenses, they would probably be lucky to take home $2,000. Oh, then there's the IRS.

Most people have no idea of the expense or time an agent invests in each transaction.
0 votes Thank Flag Link Thu Dec 4, 2008
Commissions are negotiable items.

As a general rule, the better the agent and the firms marketing, the more they charge.

Commissions are shared with all brokers and agents involved in a transaction. How much is share is negotiated between brokers, but is a fair question to ask a prospective agent. The more they share, the more attention your listing will attract.

If you're buying, the seller pays the commission in most cases.

Best of Luck
0 votes Thank Flag Link Thu Dec 4, 2008
Harold,

Unfortunately, we, as Realtors, can't discuss what a "normal" commission is. The National Association of Realtors tells us that we can't. The reason is because commissions are completely negotiatable. There is no minimum and there is no maximum commission.

I'm guessing that you're thinking about selling and you don't know if you should list your home and pay a commission. My suggestion would be to call a few Realtors in your market area and interview them. "Don't Be Afraid" they're not going to bite you. This way you can get your commission question answered.

Good Luck!
0 votes Thank Flag Link Wed Dec 3, 2008
Commission agreements are between the seller and their Realtor and should be based on the level of service that is agreed upon. They can range from 4 to 8% but statistics show that higher commission houses sell for more money and at a faster rate.
0 votes Thank Flag Link Wed Dec 3, 2008
The seller pays the real estate agent commissions upon funding via the title company. In most instances however based on the listing agreement between sellers agent/ seller broker the average realtors fees are total 6% split between listing/buyers agent. These fees ARE then split with the listing/buyers agent brokers based on their agreement with office which can average. You can safely assume each realtor make approx. 1.5% of listing/buyers agent of the sales price the other 1.5% is paid to agent brokers.

Keep in mind out of that 1.5% agents have to pay for their overhead expenses, office dues, auto expenses, realtors board fees, phones, internet, websites, business cards, and other items.

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0 votes Thank Flag Link Wed Dec 3, 2008
It depends on the listing agreement and what the seller is willing to pay.
0 votes Thank Flag Link Wed Dec 3, 2008
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