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How can I hold my realtor accountable to pay their commission to me if they successfully list and sell my home without violating our original agreement?
Realtors typically earn a commission of 5-6% of the home's sale price, which can range from $10,000 to $30,000 or more on a $500,000 home sale.
The seller usually pays the real estate agent's commission, but this can vary depending on the local customs and agreements.
Agents often split their commission with their brokerage, with the brokerage taking 20-50% of the total commission.
Realtors may have different commission rates for different services, such as listing the property, finding a buyer, and closing the sale.
In some cases, realtors may offer discounted commission rates for selling a property quickly or for bundled services.
Homeowners can negotiate the commission rate with their realtor, especially if they're selling multiple properties or referring friends.
A 2019 survey found that 64% of homeowners didn't negotiate their realtor's commission rate, missing out on potential savings.
Realtors' commissions can vary significantly depending on the location, with urban areas often having higher commission rates than rural areas.
Some real estate agencies offer rebate programs, where a portion of the commission is refunded to the homeowner.
Sellers can consider working with discount real estate brokers, who offer lower commission rates in exchange for limited services.
In some states, realtors are required to disclose their commission rates upfront, while in others, it's not mandatory.
Homeowners can create a performance-based commission agreement, where the realtor's commission is tied to the sale price or speed of sale.
Realtors may have to pay fees to their brokerage for marketing, training, and other expenses, which can affect their take-home pay.
In disputes over commission payments, homeowners and realtors may seek mediation or legal action to resolve the issue.
Clear and specific commission agreements can help prevent disputes by outlining the terms and conditions of payment.
Some real estate agencies have internal dispute resolution processes to handle commission disputes between agents and clients.
National associations, like the National Realtors Association, may establish guidelines for realtor compensation, which can influence local practices.
Commission rates can vary depending on the type of property being sold, with commercial properties often having different rates than residential properties.
Realtors may offer tiered commission rates, where the commission percentage decreases as the sale price increases.
Homeowners can research local market rates and compare commission rates among different realtors to find the best deal.
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