Guess What We Have For Dessert Tonight?
Q: Does this mean the seller pays 6% of sale price to the office that the selling agent is affiliated with, plus 3% to the agent, plus 3% to the buyer's agent? Or does this mean the 6% comes out of the sale price, and is then divided equally between buyer's agent, and seller's agent, who each then have to divide their 3% with the listing office, so the office ends up with 3%? Is the commission taken out of the gross sales price, or the net, after seller's expenses are taken out? (I can guess that one) So what happens if the buyer and the seller find each other, agree on a price, and just don't know the details of how to finalize the sale? Who gets the 6% then? Why do they need an agent? Why wouldn't a lawyer do? My mother walked into that one when she sold her house. She was leaving town, signed with an agent, and came back a year later to find the house unsold, unadvertised, no sign even. So she herself found a buyer, went to a lawyer to have it legalized, and here came the agent with his hand out asking 6%. Got it, too. Seems that was standard practice.: get an agent, sell your own house, pay the agent. She learned to have a final date written into the contract that the agent is terminated. Everybody is after your money.
A: Does this mean the seller pays 6% of sale price to the office that the >selling agent is affiliated with, plus 3% to the agent, plus 3% to the >buyer's agent? ***Seller contracts with the Listing Company for the "Selling Fee", whatever is agreed upon. Then, the Listing Company offers to share [usually half of it] with other MLS companies as incentive for them to bring their buyers to look at the house. That is the extent of the seller's obligation, so far as commissions are concerned. ***This is closer to what actually happens, Blake, but the sharing of the commission between a company and its agents is privately contracted between them. Even within an office, folk don't know who's getting what... A very private matter. ***It's taken from the actual sales price at closing. Any listing agent who's giving you a "market analysis" will also leave with you an estimate of your costs at closing. Except for the sales commission, most of the money comes from the Buyer at closing. ***The main danger to the seller in doing this is the very real possibility of undervaluing the property. If you decide to go it alone, pay for a bank appraisal first. Then, don't sign the buyer's offer to purchase until your atty. has had a chance to read it. You should also be sure that the closing attorney is representing YOU. If the buyer wants his own attorney to handle the closing, you should ~ at the very least ~ have your attorney look over the closing papers first... ***If you're thinking of that buyer you know who's interested in your mother's house, just exempt him by name from the Lisiting Contract you sign. The Listing Co. may want a time limit on it, but you can negotiate that. ***A good Realtor will walk you through the process, de-mystifying it as you go along. Modern real estate contracts have end dates and list the company's obligations to you. And it may be that, even back then, a refusal might have prevailed, if your mother had decided to dig in and accept the probable lawsuit...
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