When buying, selling, or renting a property, understanding how real estate commissions work is essential. At RBS , we believe in transparency, ensuring that clients know what they’re paying for and why.
A real estate commission is the fee paid to an agent for their services in facilitating a property transaction. It covers their expertise, marketing efforts, negotiations, and the overall management of the process. This fee is usually a percentage of the property’s sale price or rental cost.
How Commissions Work in Real Estate
Agents typically charge 3% to 10% of the property’s final sale price, depending on the agreement and market conditions.
The commission is often equivalent to one month’s rent or a percentage of the total lease term.
If both a buyer and seller’s agent are involved, they divide the commission based on their agreement.
Who Pays the Commission?
The seller usually covers the agent’s commission, deducted from the final sale proceeds.
For Rentals: The property owner, tenant, or both may be responsible for the agent’s fee, depending on the terms agreed upon.
Why Do Agents Charge a Commission?
Agents provide valuable insights into property prices, trends, and investment opportunities.
They help clients secure the best possible deals.
Agents invest in advertising, property listings, and client outreach.
They handle legal paperwork, inspections, and the closing process to ensure a smooth transaction.
Can You Negotiate a Commission?
Yes! Some agents may be open to adjusting their commission based on factors like market conditions and property value. At RBS, we ensure that our commission structure is fair, competitive, and aligned with the quality of service we provide.
Understanding real estate commissions ensures a smooth transaction without surprises. At RBS , we are committed to offering professional and transparent services to help you buy, sell, or rent with confidence.