Well, to be honest, it’s all negotiable. In our area, typically, the seller is one that engages the Broker/Realtor and they pay the entire commission. I feel like some “wanna be” first time home buyers are a tad bit nervous about inquiring about homes because they think they have to pay the commission. This could be nerve wracking if they are not educated, because usually they just saved up their down payment and closing cost funds. In my opinion, it makes total sense for the seller to pay the commission, given they have equity in their property. The seller should have equity if they have kept up with their continued maintenance, made timely mortgage payments and didn’t have an adjustable rate mortgage that went through the roof. There are other variables that come into play here too. Every situation is different and you can read my previous articles about continued maintenance, deferred maintenance and how to always strive to have equity in your property. You can find them on my website here! http://topnotchrealty.net
As Donna Summer sings “She works hard for the money”, my parody version is, “They work hard for the money, so hard for their money”. Most Brokers/Realtors work extremely hard for their Clients. Sometimes it can be disheartening when someone questions your worth as a professional, however; a good Broker/Realtor will show Clients their worth with referrals, statistics, knowledge etc. Would someone come to your line of work and question your worth? Maybe you are self employed and able to show the above mentioned. What if you’re employed by a company and the company hires a third party for the company and the third party comes in questioning your worth to the company? The third party decides they are going to lower your salary. What would be your thoughts? You are professionals and perform a professional job. If you are integrable, you might say as in the words of Pat Benetar “Hit me with your best shot!” That is how most of us, Brokers/Realtors, approach it as well when our worth is questioned. Is it ok to interview with several Brokers/Realtors? Of course it is! As far as I know, we are still the land of the free. Whether you are listing a property or buying a property, find a Broker/Realtor that can fit your needs as a Client. Brokers/Realtors are not in a box and not all of us are the same. Statistically, Brokers/Realtors work with Clients on average for eight to eleven months. If you think about the commission and divide it by that many months, the commission might start making a little more sense. If they listed a property and another Broker/Realtor brings a buyer, the listing agent gives part of their commission to the Buyer’s Broker/Realtor at closing. Commission is paid at closing, not before. Brokers/Realtors will market your property, showing your property, host an open house, etc. If there isn’t a buyer for the property they listed, Client decides to withdraw the listing, terminate the listing agreement etc, then that listing Broker/Realtor made zero money; however they worked hard for the zero money. Most Brokers/Realtors pour their heart and soul into their Client’s best interests. Sometimes they sacrifice time with their families, church time, vacation time, missed their child’s basketball game, etc. A great Realtor will educate their Clients, whether the Clients are listing a property or buying a property.
One of the benefits of listing your property with a Realtor is syndication magic through the multiple listing services aka MLS. What do you mean by syndication magic? Once a Reatlor inputs a listing into the MLS, the listing syndicates to 50+ websites. So when you see a listing on Realtor.com, Lands of Texas, Homes for Sale, Zillow (sigh… “Zestimates” are not correct, for the love of everything good in this world, do not value your property off “Zestimate”. I will go into this at another time), etc. Brokers/Realtors and Appraisers pay hefty dues quarterly and annually to list properties on the MLS and have access to other listings from other Brokers/Realtors. Texas is a non-disclosure state, thus for sale by owner sales are not available to the public unless the seller gives access to the settlement statements. The MLS provides comparable sales to Appraisers and Brokers/Realtors and this is part of the formula for deriving a listing price and for Appraisers, market value. Appraiser and Brokers/Realtors cannot go by the famous “well Billy Jo told me that Martha Sue just sold her land a mile down the road for 1 M per acre. Appraisers especially, have to have written proof in a closed (not about to close) settlement statement.
You’re more than likely a professional in your career. You have experience and knowledge in the field of work you are in. Please consider leaving the real estate market to the professionals. We are experienced professionals and some of us have been licensed for decades!! Yes I do mean decades. Remember, your Broker/Realtor is going to give it their best shot!! Just go ahead and let them fire away! What do you have to lose? Until next time, happy buying and selling!