Real estate agents are those who help and assist people out to buy or sell the property. Have you ever given this fact a thought that, how do real estate agents get paid? Or how much do they charge for a commission of a house? These questions are answered below.
Real estate agents are those who help and assist people out to buy or sell the property. Have you ever given this fact a thought that, how do real estate agents get paid? Or how much do they charge for a commission of a house? Are realtor commissions negotiable? These questions are answered below.
Commission of Estates Agents
In order to sell or buy property, you would definitely require an estate agent which is probably known as a property dealer. They assist to introduce the buyers to property owners. If you want to sell a house then you will contact a property dealer and tell them the specifications of your house and he will help you to sell it.
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As said earlier, their work is to connect both parties. At the end of the day, after a successful dealing, property dealers charge a specific amount which basically depends upon some factors.
Who Pays the Commission?
Generally, if you are buying a house, you would not have to pay the commission. Property dealer’s commission is basically paid by the one selling the house.
Commission on a Normal House
Property dealers charge differently depending upon the area and location of the size. For a normal house, real estate agents charge 0.5 to 2 percent of the total house payment. If the house has no architecture and it is pretty basic then they charge a 1 % percent commission. They charge this payment after the owner sell’s his house and receives the money.
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Commission of House in Nice Location
If the house is located in one of the posh areas or somewhere nice then the price of it will automatically go up than the normal ones and on these houses, real estate agents charge 2 to 2.5 % percent commission.
Commission On Houses in Commercial Area
Houses or properties in commercial areas sell like hotcakes, as they are highly-priced according to that their commissions are charged more as well. For the properties that are located in the commercial areas, real estate agents charge from 2 to 4 % percentage of the total pricing of the house.
Commission On Fancy and Architecture-Based Houses
If the house you are selling is fully furnished, luxurious, fancy, and has a special architecture. For instance, these days, houses that are built on Spanish and Roman-based architecture are in style. These houses cost a lot and if a dealer fixes a deal between a buyer and seller then he would probably get 2 to 3.5 or 4.5 % of the commission.
Do You Have to Pay the Commission to the Dealer If your House Doesn’t Sell?
No, you really don’t have to pay the commission if the dealer was not able to sell your house. You only pay them after they sell your house and you get the money from the buyer.
Main Idea of the Commission Charges
As we all know, every home is not the same. Depending upon the size (square feet), location, and architecture, every house is priced differently. Prices of houses have great diversity and so do the commissions of property dealers. It would be difficult to mention a specific range because costs variate depending upon different factors but mostly commission is charged between 0.5 to 4.5 % on the total price of the house.
Final View Point
As discussed earlier, the work of a real estate agent is to set a meeting between both the parties of buyer and seller and help them to confirm a deal. After the confirmation of the deal, the Property dealer charges a specific amount as a commission which variates differently.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Sigma Properties. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.