Buying or selling a home is one of the most significant financial decisions consumers make. Considering the complexities and risks involved in real estate transactions, many consumers hire real estate agents to help them navigate the process. Traditionally, homeowners pay real estate agents a commission to do so. But how much is the typical commission? And is it worth the cost?
The answer depends on your location and the market conditions. Real estate agent commission rates vary greatly from state to state, but New York is typically in the middle of the pack. On average, a seller’s agent in New York earns 3.99% of the sale price of the property while a buyer’s agent earns 2.39%. These rates are negotiable, and many agents are willing to lower their fees as a result of competition.
It’s important to note that the 6% commission rate isn’t actually paid directly to agents. Instead, the listing broker hands a portion of the commission to the buyer’s agent and to their own broker as well. This means that a seller’s agent is only getting a fraction of the total commission, which could add up to thousands or even tens of thousands of dollars in the end. Read more:https://www.readysetsellmyhome.com/
This is why it’s important to shop around for the best agents and find a company that offers reduced real estate commission rates. For example, Hauseit’s NYC flatfee MLS listing service can save sellers up to 6% in broker commissions when they sell their homes. To learn more about how to save on NYC real estate commission, click here.
Although the internet was expected to put a dent in real estate commissions, the traditional model still prevails, with 6% of the final sales price going to the broker and agents who helped sell the home. While the 6% standard may seem high, it’s important to remember that a real estate agent’s fee covers a wide range of services, including marketing and listing your home, showing and negotiating with potential buyers, and handling the complex paperwork associated with real estate transactions. For most homeowners, these services are more than worth the cost of a real estate commission.
In a buyer’s market, it may be easier to convince an agent to lower their commission rates. However, in a seller’s market, it might be more difficult to do so. To see how much a local real estate agent’s commission rates are, check out our New York real estate commission calculator. Remember that real estate commission rates are always negotiable, so it’s worth trying to work out a deal with your agent. With the right amount of persistence and negotiation skills, you may be able to get an agent to lower their rate significantly. Good luck!
