Real estate commissions can seem confusing, but they’re actually quite simple. In this blog post, we’ll explain how real estate commissions work, as well as show you how listing on the MLS for a flat fee in Florida can save you thousands of dollars when selling your house.
Real estate agents can either represent buyers, who are looking for a home to purchase, or sellers, who are trying to sell their home. A real estate agent who represents a seller is commonly called a listing agent, because they list the property for sale. Real estate agents who work with buyers are commonly called buyer’s agents. Most real estate agents work with both buyers and sellers. They may have some properties listed for their seller clients, while at the same time, they are working with buyers to find a home.
So, how does real estate commission work?
When someone decides to sell their property, they typically find a real estate agent to list the property for sale. The seller signs a listing agreement with the listing agent which says the seller will pay the listing agent a 6% commission when the property sells. The listing agreement also gives the listing agent the right to market the property and list it on the local MLS.
After taking the listing, the listing agent will take photos of the property and list the property on the local MLS. On the MLS listing, the listing agent will offer a portion of the commission (usually 3%) to other agents who find a buyer. If the listing agent also finds a buyer for the property, he or she keeps the entire 6% commission. However, this is rarely the case. Usually, another agent will bring a buyer. In this case, the listing agent must split the commission with the buyer’s agent according to the offer on the MLS listing. This usually results in the listing agent getting a 3% commission and the buyer’s agent getting the other 3%.
How listing on the MLS for a flat fee in Florida can save you thousands on Real Estate Commission
Real estate commission can be expensive. In fact, it’s usually the largest expense of selling a house. For example, a home selling for $250,000 will result in a $15,000 commission, assuming a 6% commission rate. It’s no wonder that many sellers try to find ways to save on real estate commission. Especially when it’s usually another agent who finds the buyer, not the listing agent. This is why many sellers have turned to listing on the MLS for a flat fee in Florida.
By listing their properties on the MLS for a flat fee, Florida sellers can cut out the commission paid to the listing agent. Instead of paying 6%, they pay a low, flat fee to a flat fee MLS listing company to have their properties listed on the local MLS. When a buyer’s agent finds a buyer, they are paid the same 3% commission as a traditional listing.
If you’d like to find out more about listing on the MLS for a flat fee in Florida, feel free to contact us. We’d be happy to walk you through the process.