Four Seasons Sotheby’s International Realty charges a 6% listing fee when you list your property for sale with them. My experience as a real estate agent has shown that many people do not understand what our fee is about, and many believe that 6% fee is negotiable, which it is not. So, you many be wondering, what does 6% get you?
Take a look at this pie chart of a 6% real estate sales commission. It shows how our 6% is dispersed.
The buyer’s agency gets 3% at closing, and here’s why: that agent has spent weeks, months, potentially years driving, showing, and educating the buyer about the market. Agents invest time, energy, and money, and they don’t get paid until they sit at a closing table.
Some agents, like myself, pay a professional stager, photographer, and videographer to present your property at its best. This is an investment that some agents are willing to make, and they make it with their own money, anticipating that it will be worth it in the long run. Other investments may include listing announcement postcards, property brochures, and flyers generated to notify other agents that your home is for sale.
This includes ongoing print advertising in newspapers and magazines, and social media, such as blogs, Facebook, LinkedIn, Twitter, Pinterest, and Instagram. Again, not all agents do this, but I do.
Once the buyer’s agent and marketing expenses are accounted for, approximately 2.5% is left. This is split between the agency and the real estate agent. The agency is compensated for their promotional efforts and general overhead. The real estate agent is left the balance.
As you can see, after everything is said and done, the papers signed and the cork popped, most real estate agents are not taking home a bucket-load of cash. Their cut in the transaction is a modest paycheck.
So, what does 6% get you? A hard-working real estate agent (or two) and a house that sold.
Thanks for reading and feel free to contact me with questions!