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What You Need to Know About Dallas Real Estate Agent Commission
Finding
Dallas
real estate agent can be difficult, regardless of whether
you’re looking to sell your home or find Dallas
Texas
real estate of your own. Finding a great
Dallas
realtor can be even more difficult. One of the most
difficult parts of the process is gaining an understanding
of when and how your real estate agent is going to earn
commission off of your sale or purchase.
First of all, your real estate agent more than likely works
for a DFW real estate broker. There is quite a bit of difference
between a licensed real estate agent and a licensed broker,
but just know this – legally, only a broker can sign your
Dallas
real estate agreements. Your agent, therefore, acts as
your personal customer service representative – almost like
a middle man.
Once you’ve decided to list your
Dallas
homes for sale you’ll have to come to an agreement with
your
Dallas
real estate agent. Typically, your agent will want to
negotiate a fee for the work he does in bringing a buyer to
your home. He’ll list your home on the market, often using a
flat MLS listing
service, and then work with buyers and their agents to come
to an agreement. For these services you will likely end up
paying your Dallas
realtor a fee typically ranging anywhere from 3 – 7 % of the
total sale price of the home.
Technically, you are paying this fee to the real estate
broker, for whom the real estate agent works. Often times,
Dallas
real estate agents are independent contractors who
associate themselves with big-name real estate brokers
because of their notoriety.
Let’s say you sell your home for $200,000. In this
case, you agreed to pay the real estate brokerage 7% of your
sale price for their help, totaling $14,000. In many cases,
the actual
Dallas
real estate agent who did the work will only receive 30%
of that cost, or $4,200.
Sadly, just because your agent listed your
Dallas
homes for sale doesn’t mean that his brokerage will get
to keep the entire commission. In some cases, the buyer is
represented by a different broker. He will negotiate with
your selling broker to earn a portion of the commission for
his work in helping your broker make the sale. Let’s say,
for example, that they decide to split the commission 50/50.
That $14,000 your broker earns suddenly turns into $7,000,
meaning he might only go home, after months of work, with
$2,100.
There are several different theories and ideas regarding who
does and should pay the commission on a
Dallas Texas real estate sale. In some cases the buyer pays the commissions, and
in other cases the seller. The state of the Dallas
real estate market may also play a huge role in
determining who is responsible for payment, depending on
whether or not you are making your transaction in a buyer’s
market or a seller’s market.
In the end, it is widely believed that the buyer always pays
the commission. He is, after all, paying the full price for
the home and the seller takes the money to pay his
Dallas
realtor out of the settlement.
The seller will have the ability to control the
ultimate sale price of the Dallas
real estate in question, so it isn’t likely that a
seller is really going to lose 7% of the total value of his
home.
Dallas Texas
real estate
is plentiful. Work carefully to choose a real estate agent
who is going to treat your
Dallas
real estate transaction with care, ensuring you are able
to make the best possible deal with the least amount of
hassle. Whether or not you find a good Dallas
realtor will mean the difference between a hassle free
sale and a major headache.
Are you currently conducting your own
Dallas
real estate search? We can help, and are currently
helping buyers and sellers in the following communities:
Allen, Dallas,
Addison,
Fort Worth, McKinney, Denton, Texas,
Irving, Houston, Plano,
Austin, Frisco,
Waco, Southlake
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