Real Estate Commission Question

Why is the commission a percentage of the sales price?

Does the Real Estate Agent do more when they are selling a more expensive house than a less expensive house?

Not trying to start drama...just wondering...

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Posted by DeeDee1013

Why is the commission a percentage of the sales price?

Does the Real Estate Agent do more when they are selling a more expensive house than a less expensive house?

Not trying to start drama...just wondering...

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Depends on what is decided. And they ere is a broker fee that the agent pays

No its against real estate law to do so.

the percentage is negotiated by the homeowner with the listing agent- the listing agent makes a marketing plan and will put it in newspapers, ads, etc for a certain amount and you can get more exposure for higher percentage rates

the selling agent (if different) from the listing agent gets 50% of the commission but that can depend too

most agents then have to give a certain % or flat rate to their broker- the broker is the real estate agency- i.e. Prudential

I don't think they are doing anything different in terms of marketing the house for a higher selling price.

It's a flat 4% commission.

So for a $450,000 house - the selling agent gets $18,000

For a $400,000 house - the selling agent gets $16,000

I just don't understand why a selling agent can get more commission if they sell a higher priced house...and doing the same thing they would do to sell a cheaper house....

Oh well...

No drama please

I dont know if I can explain it well on here- but agents are compensated via the selling price of the house- by giving a percentage- it is in an agents best interest to get you the most money back on your house- meaning if I list a house for $450k, I will do everything in my power to get the full amount, so that I get the full commission

hth