A SELLER's REAL ESTATE Agency Fee Explained
Think your agent is pocketing that whole fee and not doing enough to earn it?
Here are the facts in the Real Estate World!
Real Estate Agency fees to sell a property vary by area and company, for us at Weaver Realtors, we base that REAL Estate Agency fee on what we expect it to cost our company to sell a particular property.
When a property closes, the BROKERAGES that the agents are contracted to (real estate agents are not paid a salary they are not employees, they are independent contractors contracted to a Brokerage), are who gets paid at closing, not your agent.
Once the Brokerage (company) is paid their part of the fee (which is usually divided 50/50), they then pay their respective agent whatever fee or percentage they have contracted with that agent.
Since agents are not employees the fees they receive go to pay advertising costs, auto costs, insurance, continuing education, marketing fees, signage and photography among others.
The brokerage has similar fees to the agent and the additional cost of a brick and mortar building, website/s, administrative assistance, insurance, phone systems, office equipment, building maintenance, etc.
The big thing to remember is, if your property doesn't sell, your agent and the company they represent do not get paid for the work and the money they have put into your property.
Have questions, call me Georgia Weaver 712-291-0118