Many people wonder How Real Estate Commissions Work In Crested Butte. In general people aren’t really sure how commissions work when it comes to real estate. So here’s what you should know about real estate agent commissions. It is customary on a residential real estate transaction for the seller to pay the commissions for the Listing Brokerage firm. The Listing Brokerage firm is the one representing the seller. Then the Listing Brokerage pays a co-op commission to the Selling Brokerage firm (representing the buyer). The terms of this are clearly written in the Listing Contract that you will sign as a Seller with the Listing Brokerage firm and the Listing Agent. The co-op commission is one of the many fields shown in the Multiple Listing Service (MLS) but may not be visible to the general public. This blog will help you understand How Real Estate Commission Works In Crested Butte.
How Much Is Real Estate Commission
Realtors don’t get paid hourly or even weekly they typically get paid once the sale or the closing is completed and everything is complete on the sale. While there are some real estate agents who will charge a flat fee for their services this isn’t typical. Normally they just charge a percentage of the sale price of the home once the deal is done. The exact percentage that the real estate agent working with you that they will charge you is going to vary slightly from Realtor to Realtor. The overall commission is normally split 50% to the Listing Brokerage, and 50% percent to the Selling Brokerage. The Title Company disburses the commissions at closing and pays the Listing Brokerage firm. Then the Listing Brokerage firm simultaneously pays the co-op commission to the Selling Brokerage firm. The brokerages take their percentage (usually 1/3 of the earned commission), and then the remaining 2/3 goes to the seller’s agent and the buyer’s agent (then the IRS gets their 1/3!).
Commissions Are Negotiable How Real Estate Commission Works In Crested Butte
What you should know about real estate agent commissions is that they are negotiable. However, that doesn’t mean it’s always a good idea to negotiate and you generally get what you pay for. Some sellers believe they will benefit by negotiating a reduced commission with the listing agent. The reality is the listing agent and the selling agent will be splitting the total commission. The selling agent is the cooperating agent who brings the buyer. Given the opportunity to choose, there are some agents who may decide not to show your home over others because they see a reduced commission rate in the MLS.
Variable Commission And How Real Estate Commission Works In Crested Butte
A variable commission is a reduced commission if your listing agent brings the buyer. The reality is you are hiring your agent to market, list, and sell your home. You want your agent to bring buyers to your home for showings and hopefully submit an offer. You do not want to disincentivize your agent from bringing buyers to your home. There is typically a “variable commission” field in the MLS, and this may discourage other agents from showing your home. Because if their buyer submits an offer and the listing agent’s buyer submits an identical offer, you the seller will take the listing agent’s buyer offer because it will result in a larger net to you. So a variable commission is not always a good idea.
How Can I Help?
This article How Real Estate Commissions Work In Crested Butte is representative of the candid info you can expect from me as your real estate agent. If you have questions, or you are ready to have me work with you to help you with your Crested Butte Real Estate needs – Please reach out and contact me! Stay safe out there.
If you want to chat about the real estate market here in Crested Butte – give me a call… (970) 209-5405
I have been in your shoes – as both a Second Home Buyer and Seller here in Crested Butte.
The Crested Butte area offers a wide variety of properties including ski-in/ski-out single-family homes, ski-in/ski-out condominiums, lake and river frontage properties, golf course property, quality homes in Downtown Crested Butte, and true fine mountain homes on acreage.
To see Crested Butte Homes For Sale or search the MLS – visit ChrisKopf.com.
The Crested Butte Real Estate Market is very active. Click this link to see my monthly Crested Butte Real Estate Market Reports.
I have consistently been a Top Real Estate Agent in Crested Butte, and I appreciate the opportunity to earn your business and be your Crested Butte Real Estate Agent.
Please contact me at:
Global Luxury Property Specialist
Coldwell Banker Mountain Properties