What you should know about real estate agency commissions
March 3, 2018
Real estate agents charge for the services they offer to homeowners for the sale of their homes. They usually charge for these services on the basis of commissions and not fixed fees. In fact, it is very difficult to find a real estate agent who allows a fixed fee for the sale of a house. The commissions these agents charge are mostly made up of a set amount plus a percentage of selling price of the house plus applicable taxes. If you hire a real estate agent to sell your house to we buy any house companies, it is important to understand the agency agreement before signing it.
It is required that a real estate agent should explain to the homeowner how he/she calculates the commission. In some jurisdictions, there is a formula real estate agents must follow when calculating this commission. Immediately you appoint a real estate agent so that you can sell house fast, there is an agency agreement you must sign before engaging on other matters. Understand that as far as commissions are concerned, a real estate agent cannot charge commissions on any task undertaken on your behalf unless the task is done under the agency agreement.
This agency agreement is a legally binding contract and its purpose is to set out commissions to be paid. The agreement mostly details a formula the agent will use to calculate commissions, rather than getting a fixed amount. Fixed amounts are not encouraged by many realtors because it is not possible to know beforehand how much the house will go for. Even if you know how to sell your house fast, it is crucial to ensure that you get a real estate agent who has an agency agreement that states when you will be required to pay the commission. Note that the commission amount is negotiable and it is best to negotiate in order to vary certain aspects of the formula.