3 Lessons Learned:

3 Lessons Learned:

Understanding Who Is Responsible in Paying Real Estate Commission Fee

Typically, real estate agents do get their salary from the commission fee that is realized from the services that they render to their clients. The confusion arises when it comes to know who is responsible for paying the common fee to the realtor. As you plan to purchase a new house using realtors it is vital that you get to know if there is an additional amount of money you are supposed to pay as a fee besides the value indicated. For this reason, if you don’t know who is to pay the commission fee to the real estate agent you don’t have to fret as this article will help you understand.

Whether you are purchasing or selling a home it is vital that you get to know the real value of the property inclusive of the commission fee. The commission fee will be the amount of money that either the buyer or the seller of the home will have to pay so that he or she can sell or buy the home fast. Therefore, the real estate agent will charge a certain percentage of the property and this finds lots of the sellers and buyers unaware since it can go up to six percent.

However, it is significant to be aware that in most situations the seller of the property is the one that is responsible for paying the commission fee. The commission will be shared among the realtors that will be involved in selling your property since they are so many such as the one that will list your home, broker and also the one that will find the buyer.

In addition, the commission fee that is charged by the real estate agent it is negotiable and you will have to agree with the realtors before the listing of your house. In some instances, you can find the real estate agent representing the buyer and seller and this can be dangerous as you can end up paying high commission and that is why lots of states prohibit such a practice. Since the commission fee earned will depend with the sale made, the real estate agent will price your property high so that he or she can earn a fee from the proceeds.

The buyer of the property will as well pay some amount of money for the signing of the agreement. Always get to know the type of the real estate contract agreement you are signing with the agent because they are of different types and if you will not be careful you will be the one to pay the commission fee.

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