During the spring buying season, advisers might be fielding more questions than usual from their clients about real estate. This is partly due to a recent verdict that could drastically cut realtor commissions, but it also reflects heightened interest in alternative types of real estate business models, including discount brokers that list homes for a flat fee.
How much the typical real estate agent charges is usually spelled out in the listing contract that the seller and broker sign. It includes both the seller’s and buyer’s agents’ compensation, which is negotiated separately by each party. Some states require the amount to be posted on a public website that can be accessed by real estate agents.
The average real estate commission in New York is about 3 percent. However, this number can vary based on market conditions, and the rate is often negotiable between the seller’s agent and the buyer’s agent. Read more https://www.sandiahomebuyers.com/sell-your-house-fast-in-tijeras-nm/
For example, a seller in a strong buyer’s market may be more willing to negotiate a lower commission, since the property is likely to sell quickly and easily. During a slow or even soft market, on the other hand, the seller might be more reluctant to reduce the commission because it may take longer to sell.
It’s also important to note that a buyer’s agent is typically paid only after the property closes, and so their compensation can be tied directly to the sale price of the home. This is called dual agency, and it is legal in some states as long as full disclosure is made to both parties. This is not the case in all states, though, so advisors should be sure to review state regulations before advising clients on the best way to proceed with a transaction.