commission: How Much Money Does Your Realtor Make? (The Sequel)
- 06/13/07 04:54 AM
I found an interesting question posed on St. Paul Real Estate Blog today. Why does it cost nearly $20K more for a Realtor to sell your $800,ooo home, than to sell a $200,000 home across town? She points out that while the costs of marketing the more expensive homes may be somewhat higher, they do not even begin to approach the tremendous difference in the amout of commission dollars the seller has to pay out. (Please note that Chicago numbers are a little different, because of the difference in average commission rate between Chicago and St. Paul.) However, this situation is … (8 comments)
commission: How Much Money Does Your Realtor Make?
- 06/12/07 02:56 AM
The average commission rate real estate agents in the Chicago area is 5% of the selling price of a home. This is paid by the seller at the time of closing. The listing agent, who represents the seller, agrees to split the commission, usually half and half, with the buyer's agent. Thus, each side of the transaction gets 2.5% . Then, each agent shares the commission with his or her brokerage firm, according to the agreement each of them has with the firm. Some top agents may keep all of their commission (however, they usually pay a hefty monthly fee … (9 comments)
I found an interesting question posed on St. Paul Real Estate Blog today. Why does it cost nearly $20K more for a Realtor to sell your $800,ooo home, than to sell a $200,000 home across town? She points out that while the costs of marketing the more expensive homes may be somewhat higher, they do not even begin to approach the tremendous difference in the amout of commission dollars the seller has to pay out. (Please note that Chicago numbers are a little different, because of the difference in average commission rate between Chicago and St. Paul.);)
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