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Expert Answers: Selling Your Home
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Written by Eric Mangan, ForSaleByOwner.com
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If we sell our home through ForSaleByOwner.com, and the buyer has a real estate agent they are working with, who pays the buyer's agent's commission?
Asked by Ron in Chicago, Illinois
----- The national average for real estate commissions is in the 5%-6% range, which normally is split evenly between the listing agent and buyer's agent. In any residential real estate transaction, the commission is paid by the seller. So, if the right buyer who comes along happens to be working with an agent, you will have to pay a commission to that buyer's agent. A commission rate equal to 2.5% of the home's purchase price is most common. If you receive an offer from an agent-assisted buyer for, let's say, $300,000, you'll actually pocket $292,500 after you pay commission. You'll do better if you can find an unassisted buyer whose offer is greater than that $292,500 amount.
Whenever a buyer contacts a "for sale by owner" seller, we suggest that the seller asks if the buyer has signed any agreement with an agent or real estate firms stating that the buyer will work with the agent and/or firm throughout the home-buying process. If they did, it might mean that you will have to be a buyer's commission to the agent. These types of agreements are not that common, but some buyers fall into the trap of signing these agreements. Hope this helps!
Eric |
