Photo Scanner: Realtor Fees

Friday, 9 November 2012

Realtor Fees

Realtor fees were traditionally paid by the seller, and tax increase would only affect its potential benefit (that is assuming the cost of the home is fixed by the market). Typically, real estate sales commissions are paid at the closing table. The title company disburses two checks out of the seller's proceeds from the sale: one to the listing broker (such as a RE/MAX or Coldwell Banker) and one to the Buyer's broker (in our case, Keller Williams Southwest). Then the Seller's broker splits their sales commission with the Seller's agent (also known as, the Listing Agent). And the Buyer's broker splits their sales commission with the Buyer's agent (Sheila Cox)--after deducting certain transaction costs, such as "Errors and Omissions Insurance." Please note that practically all real estate agents are independent contractors...not employees of the broker. In fact, real estate agents are usually required to pay certain fees to their broker for the privilege to work at that brokerage. Plus all expenses, including gas and mileage for taking you on home tours, refreshments on tours, paper and ink for contracts, phone fees, computer fees, etc. are paid by the individual agent and are not reimbursed.