Las Vegas Home Search

Tuesday, May 19, 2015

How Professional Realtors Get Paid

“what is the fee for your professional realtor’s services” 
SELLERS SIDE [LISTING]

Examples of  an initial commission established when property is listed between the seller and their listing agent [ie. 4%, 4.5%, 5%, 5.5%, 6%, 7%]. A portion or Co-op Commission [CC] is offered to the buy side representation [Keller Williams Realty Las Vegas]

BUYERS SIDE [PURCHASE] 

Danny Phee of Keller Williams Realty Las Vegas' commission for Representation is 3%, per Exclusive Buyer’s Representation Agreement. All or a portion of the 3% fee is provided through Co-op Commission [CC] as stated on the Listing Report [ie CC = 2.5% - 100]

Any difference equal to 3% total owed to the Realtor's broker [KWLV] can be built into the Buyer's total purchase price, or added to buyer’s total closing costs and paid at closing in the form of a Certified Bank Check made out to escrow company being used in the transaction [ ie 2%, 2.5%, 3%, 3.5% ].

CC=2.5% -100 [example] 

Example:

$300,000.00 Sale Price
6% Total Commission to be paid in deal = $18,000.00
3.5% paid to Listing Agent | Company = $10500.00
2.5% paid to Buyer Agent | Company = $7500.00

Example:

$300,000.00 Sale Price of Property
3% due to KW Agent | Company = $9000.00
2.5% paid per Listing Sheet [CC] = $7500.00
0.5% difference due can be built into buyers closing costs = $1500.00

Why do I set my own Commission as a Realtor?

I am a Professional Realtor®. I have a set commission rate for my professional services, skills, and representation. As in any profession that is commission based, it is up to the Professional Realtor to determine their value and fee for services. Currently in Real Estate the Listing Agent/Seller selects the Co-op commission that is offered to the Buyer’s Agent & Company in the transaction.

Question: why should someone else be setting the fee for the services that I provide you as my client?

They're not setting the fee for the services Danny Phee provides to his Las Vegas real estate prices...they're just stating what they are willing to pay as commission to the agent who procures a buyer for the seller. The difference between what Danny Phee charges clients for his services as a buyer's agent can be made up in a few different ways.

How is the Difference paid as the Buyer? 

Payment Option #1

Make an attempt to negotiate with the listing agent regarding the Co-op commission being paid out. Make it apart of the terms of the deal per your buyers request. As long as the number work out and the seller is getting a sales price they are comfortable with, and the buyer is paying what they are comfortable paying – than there is everything right about the terms of the contract.

Payment Option #2

Bring a Certified Bank Check to closing made out to the escrow company, when you go in to sign at closing, for the difference equaling the 3% commission. This is the best option if you have the funds liquid in a bank account and do not wish to build them into your loan.

Payment Option #3

Build the difference into the contract offer, [ie ask for .05%, 1%, 1.5%] back at closing to cover some/all of your additional closing costs. Note that there are limitations through the lender[s] regarding how much we could ask for back. 3-6% typically is the range limit, specific to each buyer’s financial situation.

Email Danny Phee with your questions at thevegasrealestateagent@gmail.com

No comments:

Post a Comment