Finding a Real Estate Agent
 

How do commissions work?

When you hire a Realtor to help you sell your home, expect to pay them a commission of 6-7% of the sales price of your home. This commission covers the cost for the Realtor to market your home, including:

• placement on the Multiple Listing Service (MLS)
• newspaper classifieds
• open houses

Part of this commission also goes towards compensating the Realtor who is representing the buyer.

If you don’t hire a Realtor to help you sell your home, you may still entertain offers from buyers' Realtors. However, you will need to decide whether or not you are willing to pay a commission to the buyer’s Realtor. If you choose not to pay a commission, it is very unlikely that Realtors will show your home to their buyers. However, if you are willing to pay a commission of 2-3%, it is worth the Realtor’s time to bring their buyers through your home and potentially make you an offer.

When you hire a Realtor to help you buy a home, there are a number of options for compensating the Realtor. A common way is to have the seller’s Realtor pay the buyer’s Realtor from their commission. If there is no Realtor on the seller’s side, then the buyer may be required to pay the buyer’s Realtor a commission of 2-3% of the purchase price of the home. This is done unless the buyer can get the seller to pay the commission by writing it in the offer to purchase.

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