Texas Real Estate: Who Pays Real Estate Commissions?
One of the questions that
I'm frequently asked is, "Who pays the sales commission in a
real estate transaction?" That's a good question! Here's the answer...
NOTE:
I give a rebate if you both buy and sell a home with me
within a 6-month period.
Typically, real estate
sales commissions are paid at the closing table. The title
company disburses two checks out of the seller's proceeds
from the sale: one to the listing broker (such as a RE/MAX
or Coldwell Banker) and one to the Buyer's broker (in our
case, Keller Williams Southwest). Then the Seller's broker
splits their sales commission with the Seller's agent (also
known as, the Listing Agent). And the Buyer's broker splits
their sales commission with the Buyer's agent (Sheila
Cox)--after deducting certain transaction costs, such as
"Errors and Omissions Insurance."
Please note that
practically all real estate agents are independent
contractors...not employees of the broker. In fact, real
estate agents are usually required to pay certain fees to
their broker for the privilege to work at that brokerage.
Plus all expenses, including gas and mileage for taking you
on home tours, refreshments on tours, paper and ink for
contracts, phone fees, computer fees, etc. are paid by the
individual agent and are not reimbursed.
So how do I earn the sales
commission? I have a very detailed "To Do List for Buyer
Clients" that has over 100 tasks that I may perform for
you...and only one task is "Show properties until one is
found." So even if I show you 30 houses, that only
represents one of the line items on my To Do list! Trust me
when I say that there is a lot more to my job than "just
showing houses." I'm looking out for you every step of the
way and keeping my eye on the Listing Agent, the Seller, the
builder (if applicable), the lender, the inspector, the
title company...I'm always watching out for you because I'm
your agent.
Now you need to
understand one more important thing:
How To Get
Dedicated Buyer Representation in Texas?
|
