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How Do The Selling Agent And Listing Agent Get Paid?
When a home seller agrees to partner with a brokerage or real estate agent, they sign an agreement to work exclusively with that agent or brokerage. They don’t need to pay any money upfront, but the agent or brokerage becomes entitled to a commission based on the final sales price of the home. While this amount – expressed as a percentage – can vary, it’s usually around 5% to 6% of the home sale.
Once the sale of the home is complete, the listing agent receives the commission and splits the money with the selling agent.
Since buyers have to pay their closing costs out-of-pocket while the sellers’ closing costs are deducted from the money they receive from the sale, having the seller pay the agents’ commission makes the most sense. With the commission coming from the sale, it also gives both agents an incentive to make the home sale price a fair one.
Also, if the selling agent did a good job, there’s a good chance they’ll become the listing agent if the new homeowners choose to sell in the future.
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This article was originally published by a www.quickenloans.com . Read the Original article here. .