What is the customary commission for a Real Estate Agent?
Posted on July 21st, 2010 in Renting & Real Estate | 3 Comments »
Roger N asked:
When a Real Estate Agent represents a lender ie: a foreclosure, what is the customary commission? ie; a house sells for $280,000. What is the % commision. How does that translate into dollars? IF I can come to an agreement with an agent to give me a commission for sending a buyer his/her way what % of commission should I reasonably expect? Would it be proper for me to expect for that agent to spell it all out in writting?
torrance dentist
When a Real Estate Agent represents a lender ie: a foreclosure, what is the customary commission? ie; a house sells for $280,000. What is the % commision. How does that translate into dollars? IF I can come to an agreement with an agent to give me a commission for sending a buyer his/her way what % of commission should I reasonably expect? Would it be proper for me to expect for that agent to spell it all out in writting?
torrance dentist
3 Responses
Playa del Rey Real Estate
It is illegal for you to get paid from agent! if you are not licansed you are not allowed to get a commision of any kind!
and no you wont get anything in writting. they can lose thier licanse to sell realestate if they give you any money of any kind!
sacramento homes
Realtors can’t pay a dime to someone who is not party to the transaction. It is against the law.
Wooden Swing Set
Real estate commissions vary by area, by brokerage, by agent and by type of transaction.
The math is simple: if the commission is 5%, multiply the commission rate (i.e. 0.05) times the sales price.
Interview a few agents that have been referred to you by friends/family. Ask what they charge. Typically, “listing” agents (representing the seller) split their commission with the buyer’s agent, so the seller pays the commissions and the buyer does not directly pay their agent.
You are getting partially correct answers about “referral” fees. Referral fees are governed by two sets of laws– federal and state:
When there is a federally insured loan involved, federal laws prevent an agent from paying a referral fee to anyone who did not provide a service as part of the transaction. Because most transactions involve a federally-insured loan, this rule applies to most transactions.
At the state level, you need to check with your state laws. In California, referral fees to non-licensed persons ARE legal provided that the person is not in the business of providing leads. So, an agent giving a referral fee to an unlicensed person who provided a name and address of a potential client is ALLOWED. On the other hand, an agent paying a referral fee to someone in the business of providing leads, or to another salesperson who is not a broker, is illegal.
NOTE: Even though a referral fee may be allowed by state law, you still have to obey federal law, too. So, that makes most referral fees illegal.
If referral fees are legal in your situation, I would get any agreement you make in writing, just like you would for any business agreement.