How Real Estate Commissions Work when Selling
Traditional Real Estate
In a traditional real estate transaction, you would pay an average of 6% commission at closing to your agent. For a $200,000 home, that's $12,000 of your equity!
If the buyer also has a real estate agent, this 6% commission is traditionally split between your agent and the buyer's agent. Note the full 6% commission must be paid, even if you find the buyer for your home, such as a co-worker, friend, or relative. That's a lot of money. In a few high price areas and upper price ranges, commissions around 5% have become common, with a 2.5% buyer agent commission (also known as co-op, split, selling commission, etc.)
Listing with Buyself
With a flat fee listing, instead of paying that 6%, at listing you pay just a low flat fee that averages around $399 to $499 depending on your area.
When your home sells, one of two things happens:
- If your buyer has an agent: Instead of paying a high commission of 6%, you pay a much lower commission, usually around 3%. This commission can be set by you and varies between 2-3.5% depending on your area. Looking at that same $200,000 home, that's a savings of $7501 or more, minus the normal closing costs!
- If your buyer does not have an agent: You just saved even more, because there is no selling commission, just the normal closing costs. For the same $200,000 home, that's a savings of $11,501 or more, minus the normal closing costs!
|Property Sale Price||Savings with BuySelf Realty||Traditional Broker 6% Commission||Buyself Broker - Property Sold by Buyer's Agent (avg. 3%)||Buyself Sale with No Buyer's Agent Involved (no commission)|
|$100,000||$2,601 to 5,601||$6,000||$3,000 + $299-499*||$299-499*|
|$200,000||$5,601 to 11,601||$12,000||$6,000 + $299-499*||$299-499*|
|$300,000||$8,601 to 17,601||$18,000||$9,000 + $299-499*||$299-499*|
|$400,000||$11,601 to 23,601||$24,000||$12,000 + $299-499*||$299-499*|
|* Average Listing fee paid prior to listing, see service page for your area for exact amount.|
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