Sore subject, right?
This is usually a seller's thought:
"6% of $300,000 is $18,000!!! No Realtor deserves that much money! It's not that hard to sell a house!
But, let's break that down so you understand what a 6% commission REALLY looks like for each side of the transaction.
The listing agent and the buyer's agent gets 3% each, so that is $9,000 for each Realtor. Most agents have a percentage split with their broker, because technically, all sales belongs to the broker, not the agents! Say the brokers gets 25%...the Realtors are left with $6,750 each. Now, Realtors have to give Uncle Sam 37% for taxes, social security and Medicare, (Because we are 1099 employees) so that only leaves us each about $4,387.50. From that we pay for gas to drive around with buyers or we have to pay for photographers, advertisements, marketing materials, etc...maybe we are left with $4,000.00 each?
This doesn't sound like a lot of money when you consider what you are actually paying for!! Our expertise! How would you know if a buyer was qualified to buy your home? Do you know how to price your home at a fair price? Do you feel comfortable showing your home to buyers? Do you have experience negotiating contracts? How about experience hiring inspectors? Scheduling appraisers? And so much more!
The best way for you to be comfortable with paying commissions is to hire a Realtor that will work hard and give you your money's worth! Guaranteed!! And, that is ME!
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