Buying or selling a house in Summit or Park County can be complicated with many moving parts; it’s important to trust your Realtor to guide you through the process. Most people don’t have a good understanding of how this process works so having the right Realtor in your corner is a must. But how do you find the “right” Realtor to work with you? And how does agent commission work?
Before you sign a contract it’s important to do a little research on local Realtors and ask friends and family who they have used in the past. Once you have a few agents you’re interested in you can reach out and ask for the opportunity to meet with them and discuss the possibility of working together.
You know you’re on the right track to finding the right Realtor for you when you find someone who has lived and worked full-time in your market area for several years. This means they know this market area very well. Experience is important!
Why is Local Experience Important?
An experienced agent stays on top of changes in local tax and zoning laws that may affect you and the purchase or sale of your home. They will also be familiar with current market trends and data. We put out a monthly market report on the Summit and Park County real estate market that helps our clients understand what is happening. A Realtor who knows the market and who is an excellent negotiator will be beneficial for both buyers and sellers.
Sellers will also want to know how to accurately price their homes for a quick sale. An experienced real estate agent can determine pricing strategies as well as help you judge which of the offers you receive is best for you. When interviewing agents it’s also essential to ask what marketing techniques they use, both online and offline, to attract buyers.
How Does Commission Work?
Part of the discussion that you’ll be having with agents is regarding the commission structure and, understandably, the costs to buy or sell your home. To put it simply, a seller pays a commission that is split between the seller’s agent, the buyer’s agent, and their Brokerages. The terms of the commission are clearly written in the contract that you as the client will sign when you decide to work with a Realtor. The commission that you agree to pay is shown in the Multiple Listing Service (MLS) but may not be visible to the general public.
Typically real estate commissions are six percent of the sale price of your home. This is normally split three percent to the selling agents’ Brokerage, and three percent to the buying agents’ Brokerage. Once the transaction “closes” the Title Company disburses the commissions to the selling agents Brokerage firm. They then turn around and pay the buying agent’s Brokerage firm. The brokerages and the IRS take a small percentage and the rest is then paid to the agents.
Can You Negotiate a Realtors Commission?
It may come as a surprise to some that Realtor commissions are negotiable. Some sellers believe they will benefit by negotiating a reduced commission with their agent. The reality is that the commission paid by a seller is split between the seller’s agent and the buyer’s agent. Given the opportunity to choose, some buyers agents may decide not to show your home to their clients because they see a reduced commission rate on the home.
Final Thoughts
Don’t be afraid to ask for references, reviews, or testimonials. You can also look for them yourself, sometimes these will be on generic real estate websites like Realtor or Zillow, but you should also check if the real estate agent has their own website. We have multiple testimonials on our website so that potential clients can see how people feel about working with our team. This helps give people an idea of how we work as agents and what kind of work we’ve done in the past.
Buying or selling a house in Summit or Park County can be complicated and expensive; it’s important to have the right Realtor in your corner. We hope that you’ve found this informative. And, if you need buying or selling guidance or help in the Summit or Park County area please reach out! We will also continue to provide you with relevant and up-to-date information here on our blog.
If you would like more information on how the Summit and Park County real estate market is doing, you can also sign up for our detailed monthly market report by clicking this link.
Best Regards,
Scott & Anne Lindblom
Broker Associates
LIV Sotheby’s International Realty
[email protected]
[email protected]
Scott: 970-485-4065
Anne: 608-345-2734
www.LindblomGroupe.com