COMMISSION
COMMISSION 
Commissions are established based on each transaction. While a particular Brokerage can set a standard for their agents, it is not lawful for all brokerages in an area to set a rate—that would be illegal and titled “price fixing”.
Commissions SHOULD be
about What You Do For the Client!
A prospective Seller or Buyer should not be afraid to ask the question—”What is this going to cost me?”, and “What are you going to do to earn the commission?”.
You want someone who:
Is a good negotiator (Buyer or Seller)
Has an Aggressive & “Proven” Marketing Plan (Seller)
Has a broad network to reach buyers (Buyers Agent)
Has a strong Brokerage Network—good name brand
Has a strong work ethic—someone who will treat
- ALL parties with respect.
You feel is interested in YOUR Best Interests.
Many agents will come in and woo you with their “years of doing this kind of business”, or “how many listings they take a year” - but ask them what they do to MARKET your home. Many do nothing more than put the sign in the yard and submit it to the MLS. They then sit back and wait for Buyer’s Agents to bring on the buyers. * * This worked in the 2003 to 2005 era of Real Estate sales in St George. It WILL NOT work today.
It is a Buyer’s Market today. There are more buyers than sellers! Homes on the MLS have tripled. You need an Agent that will get your listing in as many places as possible & in front of as many eyes as possible. In order to do this, they need to spend money.
My Commission:
In MOST cases, Commissions are paid by the Seller. It has been a long held belief that the cost of marketing and selling a home, is the cost of the Seller. There ARE, in most cities, BUYER's AGENT Companies. These Companies work soley for the Buyer. They MAY collect their commissions from what is offered by the Seller (see commission splits below), or they may ask the buyer to pay a fee.
6—8% Residential Home Sales
10% or more on Commercial Listings
10% or more on Land Sales
SPLITS:
6% commission would be split: 3% to the Seller’s Agent
3% to the Buyer’s Agent
3% to the Agent is further split: (Each Company is different)
6% to Prudential (the company)
10—30% to Brokerage
$59 Error and Omissions
The Balance is used for: Marketing Plan (Sellers)
(see Marketing Plan) Marketing Me (Buyers)
Overhead Expense (see list)
Taxes and Retirement
Personal Income
