Who pays commissions in the process of buying a home? When you start looking for a new home, It is likely that you’ll hire the services of a real estate agent. Both buyers and sellers will have to pay fees in a standard home sale process.
Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer’s agent,while sellers pay the fees, they usually include them into the price of the home. So technically, we could say the buyer pays the fees.
How much are real estate agent fees?
Usually around a 6% of the purchase price of the property goes to real estate agent, which is paid by the seller at closing.
Also keep in mind that there are any extra fees,all of the details about a real estate agent’s fee should be in the agreement you sign when you hire an agent.
Generally, things like photography, the cost of listing the property, and the cost of any printed materials or signs are included in the fee, along with the real estate agent’s services, of course.
Who pays the rental agent’s commission?
If you decide to go for a rental agent instead of with a real estate agent, things work differently. So who pays the fee in this case? That will be a decision usually made by the landlord or tenant. Broker fees for finding you a rental generally are between one month’s rent and 15% of the annual rent of the property.
In some situations, the landlord pays the broker to help him find a desirable tenant. But in other cases, the renter will be required to pay the broker fee.
Customs vary widely by location, so if you have any doubts, always make sure you clarify who is going to pay for what, and how much it’s going to cost, before you agree to work with a rental agent.
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.
Stay hungry and stay positive!
Make it a great day,
Sean La Rue