Real Estate Agent Commissions
Have you seen ads saying they can list your home for 1% of the selling price? If you think that sounds too good to be true, then you are thinking right. In real estate, the listing agent will specify a commission amount paid by the seller. There are usually two real estate agents involved in a real estate transaction: the seller’s agent and the buyer’s agent. The amount of commission initially specified by the listing agent is usually be split between the seller’s agent and the buyer’s agent. A typical listing commission is 6% of the selling price. Half of that 6% goes to the seller side and the other half to the buyer’s side.
These “1% folks” promise 1% listings hoping that sellers will think the total they will owe in commission is 1% of the selling price. This assumption is false. The truth is that the seller will pay 1% or more of the selling price to the seller’s agent plus an additional percentage of the selling price to the buyer’s agent. The seller may also be responsible for paying for professional photos and marketing costs as well.
This whole real estate agent payment method might sound complicated. If so, reach out to me and I’ll be glad to clear it up for you. In the mean time, once it again, if it sounds too good to be true it probably is!
AND…if you are looking for a professional, expert, competent Realtor in the New Orleans area, one who is not out to trick you into hiring them, please call me!
Garden District, CBD, Warehouse District, Uptown, French Quarter, Kenner & Metairie.
New Orleans Native & Local Resident Realtor about Kelley