Who Should Pay the Realtor Fees Between the Home Buyer and Sellers?
Even though most people are aware that being a real estate agent pays a significant amount of money annually, it is very difficult to tell if it is the buyer of the home or the seller that incurs the expenses at the end of the day. As both the home buyer and seller carry out their obligations in the home buying and selling process, each one of them pays some form of fees which add up to pay the realtor in the long run. Buying or selling a home is a crucial decision and process that requires one to enlighten themselves about some crucial things before making the step including all the costs and expenses that they will incur along the way as well.
For the new people in the real estate market, realtor fees refer to the collection to fees that the home buyers and sellers have to pay to achieve their goals in the market today. The fees can further be broken down into two major categories known as closing costs and realtor commission both of which are so common in the real estate market today and no one can successfully make a transaction without meeting them at least once. Realtor commission refers to a certain amount, in the percentage that the agent gets after helping one to either buy or sell a home in the market with most of them charging the commission up to 6% of the value of the property in the picture. Despite the percentage given above, just like any other rates in the market today, people should understand that realtor fees also keep changing and they range between 3% all the way to about 8% depending on numerous factors such as the agent that one picks and the location of the home.
It is also common for people to hear about closing costs in the real estate market today and they are the assorted rates that one has to pay either when buying or selling a home but then are not part of the realtor’s fees and they are an indicator of the end of the process. Since the closing costs are a collection of many types of fees that one pays to close the home buying and selling deal, it is right to say that they are anything that one pays, different from the real estate agent commission that may hinder the completion of the process. All of the above fees and many others put together can go as much as 3.5% of the home sale price but then also depend on some specific aspects which explains why they may vary between 2% and 7% in addition to some extra wiggle rooms on the two ends.