What Is the Real Estate Commission?

If you are interested in becoming a Real Estate Service Provider, there are a few things you should know and consider. There are many differences between a Real Estate Agent and a Realtor. First, an REO Agent needs to be licensed by the government in which he or she practices. Secondly, an REO Agent must maintain ongoing licensure examinations, meet continuing training requirements and do yearly licensing inspections. On the other hand, a Real Estate Agent can not practice until he or she receives a broker's license from the state they practice in.

A full-service real estate brokerage like The Shaver Group offers a number of different services to their clients. Full-service brokerages provide a variety of advertising and marketing opportunities, such as direct mail and online listing services. These services help the real estate professional find clients and keep their clients happy. The brokerages may also provide lead generation services and postcard services to help market the real estate professional's business.

Real Estate agents, such as The Shaver Group, have a specific list of services they will provide to their clients. These services are not mandated by the states' licensing boards. The board can not mandate that agents sell a certain number of properties, take on specific geographic markets or otherwise act in any way to enhance the agent's business. This is left up to the client to decide what services are important to them. It is the seller's responsibility to determine what services they want from their Realtors and brokers.

It is also important to understand that a buyer and seller do not pay the same commission for each transaction. A buyer will generally pay a higher commission than a seller does. This commission is based on the volume of property sold and the current market value of the real property being sold. For instance, if the real estate agent has a large list of clients who are willing to list their real property for sale at a specific price then the seller will pay a higher commission to the real estate agent. If there are a smaller number of clients who are willing to list the property for the same price then the seller will pay lower commissions to the Realtor.

As the buyer the consumer is the one who decides how much they will pay in the commission for each transaction. It is the consumer who determines if the commission they are being paid is enough to cover their costs. If they feel the seller is charging too much then they should ask the Realtor to negotiate a new commission rate. On the other hand, if they feel the commission being charged is not sufficient to cover their costs then the consumer should not make a purchase.

There is a misconception that brokers and real estate agents are paid on a "first-time" fee. This is false. A Realtor pays a commission regardless of the success of the transaction or the time that it takes to close the transaction. When determining if the commission charged by a particular real estate agent is sufficient to cover their costs it is important to ask if any part of the transaction is being charged separately such as listing fees, title or building insurance or other fees. The buyer should always request that all costs are included in the transaction.

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Other info can be found at https://www.youtube.com/watch?v=0aYLfzlaZmU .