How Does Commission Work
Shawn and Caryn Gaffney
WHAT IS THE REAL ESTATE AGENT’S COMMISSION
For first-time, or even experienced buyers and sellers of real estate, the agents’ commission can be opaque. Ultimately, the commission is calculated as a percentage of the sale value of the home and is split between the listing and buyer’s agent, if both are present in the deal. The agent provides value from their knowledge of the local area, network of industry related professionals, negotiating skills and their ability to navigate their clients through the entire process to achieve their goals. Additionally, the commission is not paid until the real estate transaction has occurred, only after the agent has provided their expertise and guidance to get you through the whole process.
WHO PAYS THE COMMISSION (hint: its not that simple)
The process of who pays the commission and where it is generated is a little more nuanced. Technically, the commission is paid for by the seller, as it is wrapped up in the price of the capital generated from the sale of the home. However, it’s the case that this price can often be “baked into” the cost of the home. It could then be argued that the buyer is ultimately paying for the commission.
HOW MUCH IS THE COMMISSION?
In the year 2020, the average realtor® commission rate for 2020 was 5.656% of the sale price of the home. This commission is usually split between the buyer and listing agent in that case, which is the vast majority of real estate transactions. The price of commission is always negotiable, but a quality real estate will typically not work for a discount and will earn their commission and much more. They generate this value by properly pricing the home, properly filling out the paperwork, syndicating the listing to popular websites like Zillow and Trulia, understanding local codes to avoid costs later on, evaluating homes without emotion and much, much more. There’s a reason that only 14% of homes sales are done without representation.
WHY IS IT IMPORTANT TO HAVE A REAL ESTATE AGENT IN THE BRECKENRIDGE MARKET?
Here in Breckenridge, the reasons to pick an agent are even more critical for both buyers and sellers. Because this is a small community, resources can be scarce and local knowledge is at a premium. Many buyers and sellers in Breckenridge are from out of state or second homeowners and may need to have a contact in town to evaluate properties and be a “long-distance” representative. There is so much to consider during the home buying process, a sure hand to guide you home is important to consider.
STU IS YOUR LOCAL PROFESSIONAL.
Stu Van Anderson lives right here in Breckenridge and is a full-time real estate agent for Coldwell Banker Mountain Properties. He is always furthering his own education and skills to be the absolute best resource for her clients. He has a 5-star review from his many testimonials from past clients. Give him a call to discuss your real estate dreams in beautiful Breckenridge!