What To Know About Commissions
If you work with a real estate agent, commissions are involved. It’s important to understand what fees apply and who pays them.
- Who Pays Commissions
- How You Can Save
- Read Your Contract Carefully
- When Commissions are Paid
Who Pays Commissions
The home seller pays the agent commission for both their agent and the buyer’s agent. Typical commissions range from 5%-6% of the sales price of the home. Half of that is paid to the seller’s agent, and half is paid to the buyer’s agent.
There is no standard commission. Sellers can negotiate commissions with their agent.
Sellers Can Save with Alpine
When you sell with Alpine, there’s no need to negotiate. We are upfront with our commissions and fees and charge everyone the same.
Instead of paying a total of 5%-6%, Alpine only charges a flat fee of $3500 or 1% (depending on the sales price) for the seller’s agent, and 2.5% for the buyer’s agent.
Plus, we never charge additional fees for professional photos or digital marketing.
Read Your Contract Carefully
Make sure you read the listing contract carefully. The contract will disclose the fees and commissions charged. It’s also important to know if you can cancel without any penalties, or how long after the contract you may still owe an agency a commission if it sells at a later time.
Alpine lets you cancel at any time and for any reason without any fees or penalties. We also don’t place an extended date on procurement of a buyer in which you would still owe a commission.
When Commissions are Paid
Real estate agents are typically paid once the transaction has closed and recorded. The funds will be disbursed to the agents through the escrow agency from the proceeds of the sale.
If your home doesn’t sell, a deal falls through, or you cancel your contract, no commissions are owed.