Up to 80% of homeowners will hire a real estate agent or broker when selling or buying a a home. Because they work on commissions, they don’t get paid until a home exchanges hands for their client, whether they’re the buyer or the seller. That means a real estate agent is going to work hard for you to complete the transaction.
The commission is usually split between the listing agent and the buyer agent. However, the full commission isn’t likely split down the middle for the buyer agent and listing agent. First, the listing brokerage will take a cut. What is left could be between 60% and 90% to be divided among the agents.
If you choose to hire a real estate agent, it’s recommend that you do your research. If the agent has a good history of coming through for his or her clients, it might be worth paying full commission, as they are more likely to help you get the best deal on a home. If you can’t find an agent with as great of a track record as you’d like, then at least try to negotiate on the commission.
Buying or selling a home is one of the biggest financial decisions that most people will make during the course of their lives. It's important to know as much as possible about the process, including much how brokers and real estate agents on each end of the transaction will be paid. That way you can make an informed decision about hiring a real estate agent.
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