How to Understand Realtor Sales Commissions

How to Understand Realtor Sales Commissions
Hi! This is Paul Louis Muller your neighborhood Realtor, you can find me on the web at http://callpaul.yourkwagent.com, there’s no www in that address folks, on behalf of expertvillage.com I’d like to welcome you. I want to talk a little bit about the dreaded commission that you have to pay the Realtor. Now there is a misconception that you’ll be saving money if you pay a Realtor a very, very small commission, and I want to clear that up because I have to explain to you how it works out. When a Realtor lists your property, he charges you a commission. Now let’s say the Realtor says “Oh I’m only going to charge you 3% commission.” Well keep in mind that Realtor then has to pay out 50% of that to a buyer’s agent; and when he lists your property, it’s going to say there all the information is going to say “I’m paying out 1.5%.” Now do you really think the buyer’s agent is going to come and see that property if he knows he’s only going to get 1.5% in the end? Not too likely, not too likely, so think about that, because you know paying out 3% is fine. You can list the house for 5% if you’re paying out for your percent, that way you’ll know you’ll get more activity than if you were paying only 2.5%. But these are things that I think sellers aren’t aware of. They’re not aware of how the whole thing is broken up in the end with other agents. So again when talking about commission with your Realtor, always go back to that phrase which I firmly believe in, “you get what you paid for,” so pay your Realtor, you’ll be glad that you did, believe me. Well I hope some of these tips were helpful to you in choosing the right Realtor. Some of these were my opinions, some of these were things as I told you that I learned from my mentors and associates, and I hope they were helpful to you and will shine some light as far as your Real Estate transaction.