WHO PAYS THE COMMISSION?
The compensation of real estate agents, in most transactions in South Florida, is carried out as follows: Two agents participate in the transaction: the one who represents the seller and the one who represents the buyer and is the property seller responsible for paying the commission.
HOW MUCH IS THE STANDARD COMMISSION PERCENTAGE?
In South Florida, it is generally six percent (6%) of the sales price and is often divided equally between both agents (the one representing the seller and the one representing the buyer).
DOES THE BUYER PAY COMMISSION?
The home buyer in the vast majority of cases does not pay any type of commission to the real estate agent.
AS A SELLER, CAN I SAVE THE COMMISSION?
89% of all sellers use the advice and help of a real estate agent. Only 8% of all sellers attempt to sell the property on their own (known as For Sale By Owner), without hiring a real estate agent based on the belief that this will save six percent (6%) of the Commission.
However, it is important to take into account:
- According to national statistics, the price achieved by the “For Sale By Owner” is 19% lower than that achieved by a real estate advisor, which means that the seller manages to earn 13% (19% minus 6% commission ) more than you would have achieved if you had sold without the assistance of a real estate professional.
- Cost of printed advertising (flyers, brochures, open-houses).
- Sales price estimation and market monitoring.
- Selection of potential buyers.
- Coordination of visits.
- Legal implications as a seller.
- Security and time that prevents you from possible stressful and risky situations for yourself and your family group.
- Taking into consideration that the decision to carry out a real estate transaction is one of the most relevant in a person’s life, this is why we recommend that you make sure to hire not only a “realtor”, but also an advisor with a team capable of providing you with the legal, financial, inheritance and tax advice you need.
